Dogecoin (DOGE) kickstarted the year at a value of just $0.005, whereby in the middle of April, it surged into a record high of $0.368. It has seen a fairly high increase in its price over the past few years.
This year, the Dogecoin price is up around 1600% and is expected to soar higher. Currently, DOGE has a value of $0.356, and investors say that Dogecoin will likely hit new highs in 2021.
Cryptocurrency Rally Over The Past Few Years: An Overview
There has been a high surge in trading and investing in cryptocurrencies over the past 12 months. Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), etc., had quite a good rally in 2020, and it continues in 2021.
The value of cryptocurrencies has massively increased for investors, and it has become a store of wealth similar to gold or other commodities. Predictions say that investors have a good chance in this cryptocurrency due to its high rally. Let’s see what drives DOGE to soar higher in terms of value, price, and market cap.
Dogecoin Hitting New Highs In 2021
With its immense popularity and support among celebrities and its continuous price increase, Dogecoin is now one of the most valuable cryptocurrencies in the market. It started gaining massive value and popularity since its initiation in 2013.
Usman Chohan of the University of New South Wales Australia mentioned in his statement about the rise in DOGE’s market cap. He stated, back in 2014, the market cap of Dogecoin was only $60 million. Today DOGE has managed to hit a market cap of around $6,972,109,270, which is remarkable.
He also added that “it is driven by an online community base which generates brand loyalty and demand inelasticity.” Further, he notes, the production schedule of Dogecoin is quite aggressive and fast. In mid- 2015, there were only 100 billion DOGE coins, and currently has a circulating supply of 128,880,049,688 coins.
Unlike other cryptocurrencies, Dogecoin has an unlimited supply, and it is infinitely mineable. Its popularity reached new heights with a tweet by Elon Musk. He took it to his Twitter handle and said that Dogecoin could be the ‘future currency of earth.’
Each year about 5.2 billion new coins are being created. And if this continues, Dogecoin will likely hit new highs in 2021.
The Creation Of The ‘Meme Cryptocurrency”
Dogecoin was designed in 2013 by two software engineers Billy Markus and Jackson Palmer. It has soared almost 2400% since its initiation in February 2013. The main goal was to create a reliable, fast, and instant payment system, free from traditionally high banking fees.
Dogecoin was created with a simple vision to make people aware of blockchain technology. To implement this, the creators have blended in some elements of fun. The logo of DOGE has the face of the Shiba Inu dog from the “Doge” meme. It is also a namesake. That justifies why Dogecoin is referred to as a ‘meme cryptocurrency.’
Factors That Fuel DOGE’s Popularity
“Thanking” others on the Internet for “positive acts” such as a web-related service is what Dogecoin did initially. Later, it started building high interest among the public.
Due to the high interest of Reddit traders in January 2021, Gamestop (GME) and AMC Entertainment (AMC) showed significant rallies. In a search for their next prominent trend, Dogecoin piqued the interest of these retail investors.
On the other hand, after his supportive tweet, Elon Musk wants Dogecoin to be listed on the digital crypto platform Coinbase to increase its accessibility. Tesla has shown its interest in the crypto market by purchasing $1 billion in Bitcoin recently.
The primary factor that drives Dogecoin’s value is its rapidly increasing support from celebrities. For instance, the price of cryptocurrency rallied almost 55% after the famous American rapper Snoop Dogg tweeted out “Snoop Doge” with a meme of the Shiba. Thanks to its worldwide adoption, Dogecoin will likely hit new highs in 2021. It might have the potential to breach to $1, though not at a fast pace but in full time.
Don't Miss: Dogecoin Price Predictions
Dogecoin Hitting New Highs in 2021: The Bottom Line
Initiated as a parody coin, today, Dogecoin has positioned itself as one of the cryptocurrencies with the highest market cap and fastest growth. Investors are bustling around to know whether the currency shows an overvaluation or undervaluation.
The market trends indicate that cryptocurrencies like Dogecoin have the potential and momentum to surge higher in terms of value and price. Though accurately predicting whether DOGE will breach $1 is impossible; however, it is posed to increase in price and popularity over time.
If you are looking for future investment and have the liberty of time, Dogecoin is the best option. It is a speculative investment that could hit the ground running and soar up or remain stagnant.
But considering all the factors, there is a good chance that Dogecoin will likely hit new highs in 2021, and investing in it now can secure a wealthy future.
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Virtual currencies are highly volatile. Your capital is at risk.