Is the Dogecoin hype truly real? It’s crucial to understand THIS!!
In this video, I’ll be taking an in-depth look at the Dogecoin hype and explaining exactly what it is and how it functions. I will also be analyzing its market trends and breaking down some of the most important factors that appear to be powering it forward. Nothing in this video can be considered investment or financial advice, and I promise to be as impartial as I can. In case you’re wondering whether we were barking mad, well, you must be new to the channel and I’m the Alpha Hound in the Coin Bureau Kennels.
The creation of Dogecoin
Dogecoin was the self-deprecating example of a clone coin trying to be the next Bitcoin: The original intent of the project was to be a parody of all the serious clone coins that were trying so hard to differentiate themselves.
The meme coin Doge was created as a joke, but the underlying incentive was to create one people could easily send to friends and family as a less threatening version of Bitcoin. Dogecoin has been quite effective, raising money to send the Jamaican bobsled team to the Winter Olympics. There are no other use cases for Doge, and there are no smart contracts. The only other use case I see for it is speculation, in other words, to be traded on the markets and to make or lose money on those trades.
The most recent changes that were made happened all the way back in 2019. Dogecoin became the second most actively traded cryptocurrency over the last weekend. Trading volume on Robinhood trading app was so intense it brought the app offline. Retail investors are piling into Doge like nobody’s business. The most active market for Doge is not even an exchange, but a trading app called Robinhood.
It’s easier to market a meme dog than it is to promote a complex tech involved in E 2.0, writes John Defterios. The meme coin is a highly speculative asset with insane trading demand, Defterios says. It is more volatile than the British weather. There was a Dogecoin trend where users were trying to get Doge to one dollar on the 20th of April for twenty. The higher that doge goes, the more attention it grabs and the more media coverage it gets.
Strong community and funny memes
Some people are genuinely having fun. They love the community and enjoy the memes. They know that Doge really is a meme and they treat it as such. They join in on the trends and get involved in the hype.
This then brings in more investors happy to try their hand on the Dodge Wheel of Fortune. The bubbles feed on themselves as users are convinced that the Dogecoin price rise is confirmation in the underlying investment thesis. The most important question now comes down to whether Doge can realistically reach one dollar.
There are a number of factors that determine the price potential of a crypto. One of the most important has to be tokenomics. You cannot determine the value of a cryptocurrency based on its price per token. What do you have to look at is the price of the token times by the outstanding supply that is the dogecoin market cap. The market cap is the amount of a currency’s value divided by its economic price and market cap, which are the two most misunderstood factors. Dogecoin is worth less than a dollar, its market cap at the time of this video is already 50 billion dollars.
That’s larger than the market cap of cardano, polkadot, Spotify and the Ford Motor Corporation. In order for Doge to reach one dollar that would give it a market cap. of 129 billion dollars, it would be the third most valuable crypto in market cap rankings. The top wallets hold over 75 percent of the total doge supply.
Elon Musk is not just content on sending rockets to space.
Elon Musk tweeted that Doge will only really get his full support if major Dogecoin holders sell. There is a lot of new and young retail money riding on Dogecoin. Some of these investors do not really know the risks of investing in a mean cryptocurrency.
Some people appear to have over leveraged themselves, and I doubt that they will have invested in a prudent manner. Eventually there will come a point when there will no longer be new buyers to sustain the price. This will lead to a fall in price and who knows how quickly it could fall. Panic selling can be quite strong. Most of the traders are new retail traders and not the institutions with oceans of capital to tide them over. Doge is a fascinating cryptocurrency.
It has captured the attention of millions of users who otherwise would not have been using crypto. There are some really strong trends that are sending it higher trends, including its main value, Elon Musk and Tik-Tok. Many are investing with real money and when they lose it, it won’t be a joke. It’s merely logical means are fun and games. And I do love the Shiba trends. But there will come a time when larger holders take profit and this will lead to a collapse in price.