In the cryptocurrency world, Dogecoin has cemented itself as the world’s first and leading “meme coin”. Meme coins are designed to replicate a popular internet meme or slogan, with Dogecoin developed as a joke about the Doge meme on Reddit which spread like wildfire in 2013.
The original authors of the Dogecoin cryptocurrency were Jackson Palmer and Billy Markus. The crypto asset’s branding features the Shiba Inu dog which inspires the doge Reddit meme. With the cryptocurrency celebrating more than a decade in existence, there is seemingly no joke about this payment method that’s dubbed a “fun and friendly” cryptocurrency.
The origins of Dogecoin
Dogecoin was established as a “fork” of Litecoin, the initial successor to Bitcoin. It was then refactored to Bitcoin. One of the biggest attractions of Dogecoin as a credible alternative to Bitcoin is the speed at which its blocks are processed onto the Dogecoin blockchain. The target block time is just one minute, compared with ten minutes for Bitcoin and two-and-a-half minutes for Litecoin.
The main drawback of the Dogecoin blockchain is its inability to interact directly with smart contracts. However, it can be linked with Ethereum’s blockchain to utilize several of its decentralized finance (DeFi) services.
Within a fortnight of Dogecoin’s release in the crypto ether, Dogecoin developed a market capitalization worth $8 million. At one point, Dogecoin’s market cap grew to such an extent that it became the seventh-biggest crypto asset on the planet. At its peak, Dogecoin’s market cap reached more than $85 billion. This was achieved in early May 2021.
In fact, 2021 was a seismic year for Dogecoin investors. In January 2021, the price of one Dogecoin (DGE) soared over 800% within a single day. This was in part due to the involvement of the Reddit community, as well as encouragement from influential entrepreneur, Elon Musk, on social media. In April 2021, Dogecoin secured a direct listing on the Coinbase crypto exchange.
At the end of this breakthrough year, Dogecoin was also aided by Musk’s decision to accept Dogecoin as a form of payment for Tesla merchandise. Three years later, Musk has also moved to allow Dogecoin as an accepted payment method for selected Tesla services.
It’s also being increasingly supported by the iGaming industry. Dogecoin is one of 11 cryptocurrencies allowed for deposits and withdrawals by operator, CryptoLeo, which is ranked as the number-one iGaming platform by CasinoAlpha based on the strength of its no-deposit free spins bonuses that are often provided for first-time players.
How much has Dogecoin soared in value through the years?
It’s been more than five years since Elon Musk first tweeted about Dogecoin on his social media platforms. Had you invested $100 into Dogecoin at this point, your $100 would now be worth $5,000, representing a 5,000% return on investment.
In many ways, Musk’s involvement in the rise of Dogecoin has been seismic. He’s continually kept Dogecoin on the crypto radar. Earlier this year, Musk also suggested Dogecoin may be one of the supported payment methods for transactions on X, formerly known as Twitter, which is hoping to secure payment licenses stateside. It’s clear that Dogecoin may have started out as something of a joke but could evolve into a formidable crypto asset in the years ahead.
