Dogecoin (DOGE), launched in December 2013, started as a joke to poke fun in the cryptocurrency industry. Jackson Palmer, an Adobe engineer, and Billy Markus, an IBM software developer behind the creation of Dogecoin, adopted the Japanese breed dog, Kabosu, as its symbol. As a major pioneer in the memecoin world, here are three key reasons why Dogecoin is so popular;
1. Dogecoin Backing From Memecoin Enthusiasts
Originally designed as a meme and regarded as the first memecoin, Dogecoin is popular after years of adoption. It has evolved over the years and currently ranks among the top ten cryptocurrencies by market capitalization. As per data, Dogecoin occupies the eighth position with a market cap of over $16.11 billion.
The rapid growth of Dogecoin into a billion-dollar entity hinges on several factors. Primarily, DOGE started as a memecoin. The light-hearted crypto soon became viral among meme enthusiasts, particularly on Tumblr and Reddit. Promoting Dogecoin on these platforms soon birthed a growing community of users.
Although China banned Dogecoin, its popularity did not slow down. Notably, the official website received over one million hits within a month of its launch.
2. Celebrity Endorsement For Dogecoin
Aside from the support created by meme enthusiasts and the community spirit that made Dogecoin popular, notable figures endorsed DOGE.
Tesla CEO Elon Musk received a nod from X users to serve as Dogecoin’s chairman. The nomination followed a poll conducted by Dogecoin on the platform on April Fools’ Day.
Dogecoin became more popular as Elon maintained a steady stream of supportive tweets online. He hyped the coin as his favorite crypto and posted memes that showed his sentiments about Dogecoin.
Some notable memes by Elon include the “DOGE to the moon” post, which soon became a common phrase in crypto space, and “Dogs rock…the best coin.”
However, Elon’s backing to Dogecoin went beyond posting memes. The influential entrepreneur has helped increase the utility of DOGE.
Tesla, the electric car company, notably accepts Dogecoin as a payment option. This has made DOGE even more popular, as Elon’s acceptance has prompted other companies to embrace it. Some such companies include Dallas Mavericks, Twitch, GameStop, AMC Theaters, and many more.
This is one other reason why Dogecoin is so popular in the market today
Other endorsements from celebrities such as American rapper Snoop Dogg and one-time adult movie star Mia Khalifa also boosted Dogecoin’s awareness. Mark Cuban, renowned billionaire entrepreneur and owner of the Dallas Mavericks, is also a Dogecoin fan.
The entrepreneur once referred to Dogecoin as the “strongest cryptocurrency as a medium of exchange.” Since March 2021, the NBA team owned by Cuban has accepted DOGE for transactions such as ticket and merchandise purchases. This move has increased Dogecoin’s visibility among basketball fans and the broader public from the media attention it generated.
Like Elon, Mark Cuban speaks positively of Dogecoin in interviews, podcasts, and on his X handle. Cuban’s influence in the financial space helps fuel the price of DOGE after positive comments on X.
Cuban’s advocacy for Dogecoin as a fun and safe learning platform to understand the cryptocurrency market has also helped its popularity. According to Cuban, new investors can enter the crypto market with DOGE based on its robust ecosystem.
This insight from the billionaire entrepreneur has placed Dogecoin in the spotlight, contributing to its popularity.
3. Dogecoin’s Low Entry Barrier and Financial Inclusivity
Another notable appeal of Dogecoin is its low entry financial barrier. At the moment, the coin is valued at $0.1094 with a market capitalization of $16.11 billion.
The asset promotes inclusivity in the financial space, and a major advantage lies in its low transaction fees. This has opened up the financial sector so that investors can participate in international trade via Dogecoin.
Closely linked to this is the platform’s accessibility. Dogecoin has become popular among individuals who lack access to traditional financial services. With an internet connection, anyone can participate in financial transactions with Dogecoin.
Dogecoin is Leading the Memecoin Evolution
Three notable reasons have been highlighted thus far that explains why Dogecoin is so popular among users. These include the support from the fun community of meme enthusiasts, celebrity endorsements, and the low entry barrier. These factors have contributed to driving the project into the multibillion-dollar asset it is today.
Furthermore, DOGE introduced a light-hearted perspective to the crypto industry. Before Dogecoin, Bitcoin battled with bad PR. The top coin was linked to criminal and illegal activities such as money laundering, human trafficking, and drugs. However, Dogecoin offered a different narrative.
Dogecoin’s popularity soared, and it became regarded as a “generosity currency” as it engaged in charitable projects from its inception.
For instance, when the Jamaican bobsled team for the 2014 Olympics needed $80,000 worth of support, Dogecoin users came through. In a rare display of solidarity, Dogecoin users donated $30,000 to the Jamaican team, pushing the crowdfunding effort beyond the target figure. This ensured that the Jamaican team did not miss out on the Sochi Winter Olympics.
What’s Next for Dogecoin?
Given the huge popularity of Dogecoin and its market capitalization of over $16 billion, DOGE remains the leading memecoin in the ecosystem. Interestingly, the proliferation of memecoins in the crypto space can be attributed to the success story of DOGE.
While the Dogecoin community basks in its popularity, members are also anticipating increased value for the coin. According to data, DOGE traded up by 2.24% to $0.1121 as of this writing. According to Coingecko, this remains a far cry from DOGE’s all-time high of $0.7316, achieved in May 2021.
Investors in the first memecoin look forward to a notable appreciation in value for Dogecoin. For this to happen, experts suggest better decentralizing its ecosystem and increasing utility. If Dogecoin can trigger increased demand for its native token, the price will climb.
There is growing speculation in the community that Elon Musk will integrate DOGE as a payment method for X, given his huge support for Dogecoin. If this happens, it could help push the asset closer to $1 soon. Experts, however, insist that a faster route to the $1 level will be for Dogecoin to regulate and reduce supply.
Disclaimer: The information provided in this article is for informational purposes only. It does not constitute investment, financial, trading, or any other sort of advice. You should not treat any of BGECrypto’s content as such. BGEcrypto does not recommend that any cryptocurrency should be bought, sold, or held by you. Do your due diligence and consult your financial advisor before making any investment decisions.
