08 September 2021| ZebPay Trade-Desk
Dogecoin (DOGE) is based on the popular internet meme “doge” and has the Shiba Inu symbol in its logo. The open-source digital currency was created by Billy Markus from Portland, Oregon, and Jackson Palmer from Sydney, Australia, and forked from Litecoin in December 2013. Dogecoin’s creators envisioned it as a cryptocurrency. Cheerful and upbeat will have more appeal than the mainstream Bitcoin audience, because it’s based on a dog meme.
Dogecoin differs from the experimental Bitcoin protocol in several ways, one of which is the use of Scrypt technology. This altcoin also has a 1 minute block time and an unlimited supply, which means there is no limit to the amount of Dogecoin that Dogecoin can mine on its own or by joining a mining pool. Doge miners can mine digital currency on Windows, Mac, or Linux and use the GPU. Since 2014, you can also mine Litecoin in the same Dogecoin mining process when the processes are combined.
Dogecoin Snapshot (at the time of writing):
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Dogecoin started off with a supply cap of 100 billion coins, which is far more than mainstream cryptocurrencies. By mid-2015, the 100 billionth Dogecoin was mined, after which another 5 billion coins were circulated annually.
There is no theoretical supply limit, at this rate, the number of Dogecoins put into circulation will only double in 20 years (the next doubling will occur in 2075). There is no hard limit on Dogecoin total. In February 2014, Dogecoin founder Jackson Palmer announced that the cap would be lifted to steadily reduce inflation over time. In other words, inflation has improved over time from 5% in 2015 to less than 4% in 2019, 3% in 2027, and 2% in 2035.
Palmer is credited with bringing this idea to life. At the time, he was a member of the marketing team for Adobe Systems in Sydney. Palmer acquired the Dogecoin.com domain and added a splash screen with the coin’s logo and scattered Comic Sans text. Markus contacted Palmer after browsing the website and began an effort to develop the coin.
Markus developed the Dogecoin protocol based on the existing cryptocurrencies Luckycoin and Litecoin, using cryptographic technologies in his experimental algorithm. The use of scrypt means that miners cannot use SHA256 bitcoin mining hardware and must instead use specialized FPGAs and ASICs for mining, which is known to be more difficult to manufacture.
Dogecoin was officially launched on December 6, 2013, and over a million people visited Dogecoin.com in the first 30 days. The asset’s primary job was to act as a tipping system on Twitter and Reddit to reward the construction and sharing of quality content.
Even though Doge has been in the crypto industry for a long, it came into the limelight in 2021 with various personalities advocating and supporting it like its most beloved Elon Musk. According to the Shiba Inu website, SHIB is a “Dogecoin Killer” and will appear on its own decentralized exchange, ShibaSwap.
The Shiba Inu coin was constructed anonymously in August 2020 under the pseudonym “Ryoshi”. The meme quickly gained speed and value as the investor community was drawn to the coin’s cute appeal, as well as headlines and tweets from celebrities such as Elon Musk and Vitalik Buterin.
MonaCoin (MONA) is an open-source peer-to-peer payment network featured on WBS TV Network Tokyo, which follows a person who buys a piece of land in Nagano using MonaCoin. The bulletin board is based in Japan and is called 2Channel (2 ????) by a user using the identifier “Mr. Watanabe”.
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In the table given above, we can clearly see the comparison between the top 3 meme coins. Memes have been the most innovative way of entertainment and have been rising in popularity since these last few years.
Meme coins have used that as leverage to occupy market share in the crypto area too. Among these 3, Doge has been the oldest with the market capitalization of around $33 Billion, followed by Mona which was again constituted in 2013 in Japan with a market cap of about $0.10 bn, followed by the newest member Shiba Inu (SHIB) which was created in 2020 with a market cap of approx $2.44 billion.
Shiba had the highest YTD return of about 72,200% followed by Doge with around 5,331% and Mona came last with about 29%. In the case of return from ICO, Shiba again topped the charts with around 379,220% followed by Doge about 44,899%, and Mona with about 1,916%. These coins have been performing very well given the rise of the meme culture.
|Market Cap growth
The table above shows the ROI and market capitalization growth of Dogecoin over the last 5 years. As we can see it has increased about 127,503% in these 5 years along with a growth in market cap of about 157,872%. Even in the last three years it has shown again exemplifying growth with the market cap rising by around 6,476% and ROI by around 6,063%.
Since 2020, Doge has been in recent talks with a trending TikTok aiming to make Doge touch $1. This could be dedicated to the swell in ROI and market cap since the last 1 year by approximately 10,855% and 11,318% respectively.
Dogecoin again came in news in January 2021 due to the encouragement of Elon Musk and the GameStop short squeeze for Reddit users. And again Musk advocated it along with Snoop Dogg and Gene Simmons on Twitter. Mark Cuban allowed the asset that can be traded against his merchandise and tickets.
With all this support, the asset had phenomenal magnification both in terms of ROI and Market cap in the last 6 months with about 505% and 517% respectively. In the last month, the asset ROI has rallied positively by approximately 50% and market cap up by close to 51%. It can be attributed to the news that the Dogecoin foundation team has re-established itself after six-year and also famous people like tennis star Naomi Osaka being interested in the meme coin. The last week was positive for the coin as the ROI rose by almost 11% as well as the market cap.
Dogecoin started sharing the limelight along with its other crypto brothers mostly in 2020 due to the viral tik tok trend. This got the attention of new crypto enthusiasts. And Tesla’s CEO Elon Musk’s love for Dogecoin made it even more popular, with Musk every tweet and comment the asset would rally or fall. Mostly it has a positive effect but when Musk went on SNL the next moment Doge received a bad fall of about 46% in price and almost 35 Billion in share.
More good news came in May with SpaceX announcing a mission to the moon completely funded by Dogecoin, making it the first crypto in history to have that privilege. Since it’s essentially based on a Dog meme, PAWS Animal rescue in Chicago has started accepting Dogecoin as a means of donations.
In recent days, Shop.com has also listed Doge as a means of payment and Mark Cuban continues to support it with an enticing offer on purchasing his goods with the asset. Despite being one of the oldest crypto currencies the asset rose to the occasion recently and with so many people loving and backing it, it is going to one of the top ten in ranking at least in coming months. Future looks amazing for our beloved meme coin as it makes itself more useful as a means of payments and makes the crypto space more fun.
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