Markets tanked through the early hours of Sunday morning UTC, with Bitcoin dropping $10ok in a matter of hours. Whereas Dogecoin additionally suffered a dip, its fall was trivial in comparison with the remainder of the market. By noon, DOGE had recovered and went on to publish 12% good points by the top of the day.
Supply: DOGEUSD on TradingView.com
Quite a few figures have come ahead warning towards Dogecoin’s lack of fundamentals. However as seen on Sunday, DOGE proved itself extra resilient than “blue-chip” choices. This begs the query, what is going on with Dogecoin?
Dogecoin Exhibits no Signal of Slowing Down
Dogecoin’s meteoric rise final week noticed it spike to $0.47 on Friday earlier than giving again a few of these good points over the weekend. Though the total crypto market cap took an enormous hit, dropping from $2.2tr to backside at $1.9tr by noon, the influence on DOGE was minimal.
Whereas the likes of Cardano and Polkadot suffered share losses within the mid-twenties and have but to recuperate to pre-flash crash ranges, Dogecoin is presently up 20% from the time of the dip.
Critics argue that DOGE is a joke coin that shouldn’t be taken significantly, citing points resembling the dearth of improvement and infinite token provide. However on the identical time, others have stated its enchantment lies in bringing enjoyable to an in any other case severe trade.
Co-founder Billy Markus hopes his creation can act because the antithesis to the darkish aspect of cryptocurrency. That’s the greed, the scamming, and the FOMO mentality that pushed him out of the trade in 2015.
“Pleasure, kindness, studying, giving, empathy, enjoyable, group, inspiration, creativity, generosity, silliness, absurdity. These kind of issues are what makes Dogecoin worthwhile to me. If the group embodies these items, that’s True Worth.”
Whether or not you like it or hate it, a significant element of DOGE’s enchantment is its standing indifferent from the crypto-norm.
DOGE as a Cost Methodology
As a response to DOGE-mania, IOG CEO Charles Hoskinson just lately posted a video calling Dogecoin a “pet rock.” He attributes its rise to a mix of Elon Musk and intelligent whale manipulation. That being so, with nothing sound underpinning its worth, he warned that retail traders would get harm when issues go pop.
The unique use case for Dogecoin was as a tipping mechanism to indicate appreciation to content material creators. Nevertheless, due to billionaire Mark Cuban, evidently DOGE has a brand new use case as a fee technique.
The beginning of the month noticed Cuban’s Dallas Mavericks announce it will settle for DOGE as fee for merch and tickets. Cuban tweeted that the experiment has been a roaring success, promoting $122ok of merch. Extra curiously, he stated he would by no means promote the DOGE he earns.
FYI, the Mavs gross sales in @dogecoin have elevated 550pct over the previous month. We’ve now offered greater than 122ok Doge in merchandise ! 🚀🚀🚀 We are going to by no means promote 1 single Doge ever. So hold shopping for @dallasmavsshop https://t.co/li32cdtcED
— Mark Cuban (@mcuban) April 14, 2021
The explanations for this are unclear. However Cuban did let slip that Dogecoin is a enjoyable and interesting technique to generate PR.