Dogecoin (DOGE) was once the underdog of the crypto world; now it’s a top dog, so to speak. You’ll excuse the canine-inspired metaphors. It’s difficult to resist the temptation when talking about Dogecoin. But let’s focus on the facts. The Dogecoin price has appreciated quite a lot over the years, ascending to the 8th position in the crypto market, which is not too shabby, considering the large number of digital currencies currently in existence.
Dogecoin’s rise is all the more surprising when you remember that the project comes from quite humble beginnings. Over the years, we’ve seen countless other cryptocurrencies launch with much stronger fundamentals, clear use cases, and theoretically better chances of making it to the top, and yet none of that seemed to matter because they couldn’t even achieve half of the success and popularity that Dogecoin achieved.
So, one can’t help but wonder: to what does Dogecoin owe its success? How did the meme coin steal the spotlight when so many promising crypto initiatives struggle to get noticed? To uncover the secrets of its unlikely success, we need to look back at its history and evolution throughout the years and spot the drivers of growth.
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The joke
Ironically enough, Dogecoin’s success stems, at least in part, from the very thing that people criticize it for and that would normally be seen as a disadvantage, namely its unserious nature. In any other market, an asset like Dogecoin wouldn’t have zero chances of receiving any attention from participants. But this is crypto, and things work differently here.
Dogecoin was launched in 2013 by software engineers Jackson Palmer and Billy Markus. Its inventors thought that the crypto movement had gotten a bit too serious with all the ridiculous claims circulating at the time. They wanted to highlight the absurdity of the phenomenon and, at the same time, make crypto more fun and approachable by injecting a bit of humor into it. So, they created a parody of Bitcoin based on the viral “doge” meme, featuring Kabosu, a cute Shiba Inu with a quizzical expression.
Dogecoin simply wanted to take a jab at crypto, but the joke caught on and reached such proportions that it ended up creating an entirely new crypto subclass, that of meme coins. In a space filled with all sorts of cryptocurrencies with complicated technical features and unbacked claims, Dogecoin was like a breath of fresh air. Its simplicity and lighthearted nature turned out to be quite appealing, making that asset stand out from the rest.
The honesty
Unlike many other digital currencies that try to gain attention by using over-the-top branding, making bold promises, and trying to appear more interesting or valuable than they actually are, Dogecoin was refreshingly open and honest about what it was and wasn’t offering.
The crypto never pretended to be something it was not, being straightforward about its features and shortcomings from the very beginning. There were no frills or gimmicks trying to distract from its vacuousness. Everyone knew that the token had no real-world utility and there was no grand vision behind it, or any plan at all, for that matter. Dogecoin didn’t want to revolutionize the crypto industry (although, in a way, it did), being a simple Bitcoin fork at its core. Its only purpose was to be the world’s most fun currency, as it stated loud and clear, and this original approach made it rather likable.
The accessibility
Another aspect that contributed to Dogecoin’s appeal was its accessibility. Costing close to nothing and with a very simple structure, Dogecoin was perfect for those who wanted to test the crypto waters, without taking on a serious commitment or having a bold goal in mind.
It can be said that Dogecoin served as a gateway crypto, allowing people to gain exposure to digital currencies before moving on to more established coins. As an approachable, user-friendly cryptocurrency, DOGE was considerably less intimidating than the likes of Bitcoin and Ethereum, becoming a top choice for crypto newbies.
The community
Although it didn’t have the same attributes as more established and serious digital currencies, Dogecoin managed to attract a large and loyal following. People appreciated the coin for what it was: a fun, uncomplicated, accessible, and fully transparent digital asset. And did we mention it was fun?
The emergence of meme culture played a key role in the growth of this passionate community. Most people these days spend a lot of time on the internet, where meme culture thrives, and they very much relate to these humorous social media creations. So, by tapping into a major cultural phenomenon, Dogecoin was able to build a huge fan base whose commitment and support fueled its value and kept it afloat even during bearish phases. After all, who doesn’t love a good meme, especially when it comes with a side of potential financial profit?
The tweets
Dogecoin probably wouldn’t be where it is today without a little help from its most famous supporter, Elon Musk. The founder and CEO of SpaceX and Tesla tweeted numerous times about Dogecoin, at one point calling it the people’s crypto. His 2020 tweet, which read “One word: Doge”, led to a 20% surge in the coin’s price, and all the following mentions of Dogecoin had a significant influence on the asset’s value.
But Musk wasn’t the only public figure to endorse the meme coin. An army of celebrities gathered around Dogecoin, including names like Carole Baskin, Gene Simmons, and Snoop Dogg. All this backing boosted DOGE’s visibility and helped turn it into a real crypto superstar. Its sudden price jumps highlighted its appreciation potential and encouraged risk-prone investors to give it a try.
The novelty
The crypto space tends to reward innovation, even when it comes in rather questionable forms. In an unconventional and groundbreaking industry like crypto, market participants are more open-minded and more likely to embrace novelties. Dogecoin may not be new anymore, but it was the first of its kind when it appeared, and that caught the eye of many traders and investors looking for the next big thing.
Final thoughts
Dogecoin began as a joke, and evolved into a serious crypto contender, fueled by a combination of internet virality, community support, celeb endorsement, and a unique take on crypto. With its trajectory being so unpredictable and surprising, we can only hope that the meme coin, which started out as a parody, will maintain its humorous allure and its value.
