After an increase of more than 130% in the last few days, DOGE crypto is regaining strength and reviving its community. Driven by the ambitions of a certain Elon Musk, the token is establishing itself more and more in the crypto universe and is gradually detaching itself from its useless label of meme coin.
With the openly declared goal of reaching the symbolic threshold of the US dollar, will DOGE really be able to fulfill the dream of its fans?
DOGE crypto: from crypto joke to strong maketcap
The Dogecoin blockchain is none other than the great-granddaughter of Bitcoin. It is in fact a fork of Luckycoin, in turn derived from a fork of Litecoin, in turn a fork of Bitcoin.
The DOGE cryptocurrency was born out of a joke meant to make fun of the explosion of altcoins during the December 2013 bull run.
However, within a few months, the DOGE had assumed dimensions that even its founder, Jack Palmerhe hadn’t expected.
In fact, a large community has grown up around the project that has embraced Palmer’s message. With the help of social networks, the token that could be exchanged for a shitcoin has finally reached new heights.
Nine years later, DOGE is still part of the cryptocurrency horizon.
To date, Dogecoin is also included in the The 10 largest capitalizations crypto with a market capitalization of 17.7 billion of dollars. It now surpasses Cardano and Solana and is on the heels of BUSD, Binance’s stablecoin.
At the end of October 2022, the Shiba head token suffered a strong explosion.
As the cryptocurrency market consolidates, DOGE has seen its value increases by more than 130%. Its value erased within hours 5 months of decline.
Since the beginning of September, the token price has hovered around $0.06. In just a few days, it more than doubled to peak at $0.158.
Even if we remain quite far from its May 2021 ATH of $0.73995, this strong bullish push is indicative ofa flaming pledge that it has sufficient resources to benefit from an almost total commitment of its community.
However, this durability is not solely due to strong popularity. The token has strong allies.
What are the supports of DOGE crypto?
Elon Musk, the “Father DOGE”
The American billionaire and CEO of Tesla, among others, is undoubtedly one of the most influential people on Dogecoin.
Fascinated by cryptocurrencies, he was initially fond of Bitcoin, which he bought for $1.5 billion through Tesla. Then comes the turn of DOGE crypto to become the entrepreneur’s favorite token.
In 2019, jokes about this same corner start chirping.
With the help of a strong community that follows him, the matter becomes more and more serious when he begins to praise the merits of DOGE. Then he suggests it Tesla accepts payments in Dogecoin at the end of 2021.
Since then, all of Elon Musk’s releases, even those not related to cryptocurrencies, have caused the price of the token to react in one direction or another. So much so that the community calls it the ” Doge Father » (« Father of the Doge“).
Twitter, Musk’s new acquisition
These reactions of the token are all the more important since the CEO of Space X has decided to acquire the famous social network Twitter.
In an effort to make Twitter “ free speech platform“, Elon Musk wants to dissolve censorship on the platform and explore all the potential of the social network.
By appropriating Twitter, Elon Musk thus associates Dogecoin and the platform with a common destiny. The billionaire also speculated about charging a Twitter subscription with possible payment in DOGE.
Therefore, DOGE encryption unknowingly became a cryptocurrency associated with a social network. For its part, Twitter should very quickly become a platform focused on blockchain and Web3 technologies.
Elon Musk has already announced a new feature on Twitter: that ofexchange NFTs.
Among social networks, Reddit is also a strong support for the dog head token.
Indeed, the platform also brings together a large community of fans of this token. Many of them are convinced that the token will reach $1 one day as the project is close to their hearts.
Can Dogecoin Really Hit the Dollar Threshold?
Faced with this media strategy, we often forget to talk about Dogecoin’s background: its structure.
As mentioned above, Dogecoin is a descendant of Bitcoin and thus evolves Consent to proof of work (PoW).
However, it has improvements over its ancestor.
In fact, Dogecoin is processing faster approximately 30 GST and creating a block every minute.
As far as its tokenomics are concerned, things are very different as well.
Where BTC allows a maximum supply of 21 million tokens, DOGE knows no limits supply. It is therefore inflationary around 3.9% in 2022.
This doesn’t really play into an increase in its long-term value. On the contrary, presenting no scarcity of the token, this inflation tends to admit bearish pressure on the price of the token.
The strong centralization of tokens is also a negative point for DOGE.
In fact, according to BitInfoCharts, 50% of the tokens in circulation are held by 10 addresses one of which owns 28%.
This high concentration of tokens suggests a market potentially manipulated by whales.
However, his real-world use it’s a real plus for the token.
Unlike most meme coins which have only a speculative purpose, DOGE tends to develop a real interest for its owners.
Today it is possible to pay for real products and services with this token. So become useful.
This clearly plays in favor of the resilience and some sustainability dog head token.
Faced with all these elements, the answer to the question “Can DOGE crypto reach the dollar bar? it is far from obvious.
In fact, from the perspective of the community and the media, the answer could be “Yes.”
In theory, it is possible for the token to reach $1. Elon Musk’s adventures and ambitions are up to the challenge. And we have already seen it in the past, the DOGE is especially so sensitivewhich generates a high volatility of its course.
However, several aspects prove it this goal can be very difficult to achieve.
On the one hand, it stands to reason that if the token hits $1, that will present a perfect opportunity for investors and whales to offload their tokens in order to recoup capital gains and make significant profits.
Mechanically, this discharge would cause a violent fall the value of the token.
On the other hand, to reach this threshold, the same angle should increase its market capitalization to 132 billion dollars and takes the 3rd place on the market capitalization podium.
This goal is relatively difficult to achieve, especially with a tokenomic like yours.
Finally, DOGE’s resilience only holds up largely thanks to its community and the hype it provides. If Elon Musk were to change his tune, what would happen to DOGE?
However, the cryptocurrency market is full of surprises. DOGE encryption itself is one. Started as a simple joke 9 years ago, it has weathered storms where the strongest ecosystems have disappeared. Anything can happen with this token.
Cryptocurrencies represent an exciting universe full of opportunities. Some believe that the rising DOGE marks the end of the bear market. The markets will thus begin to activate to start a new cycle. Join the Crypto Rider training and get ready to invest in cryptocurrencies!