Dogecoin has constantly shaken the crypto market with its growth. But it has been on the downfall ever since Shiba Inu seems to have taken over its position in the meme coin segment. Dogecoin has amassed a sizable fanbase over the years, generating a hail of imitators such as Shiba Inu, Dogelon Mars, Samoyedcoin, and Doge Dash, among others.
Despite the fact that they are frequently made as a joke, these coins have the potential to become widespread. Dogecoin, for example, saw a significant increase in value on May 08, 2021, where it hit its all-time high of $0.7376. According to CoinMarketCap, it is presently ranking at the eleventh place in terms of market capitalization. As of now, DOGE has dropped 78 percent and is currently trading at $0.15 at the time of writing.
Dogecoin slowly growing as a social media sensation
The official Dogecoin Twitter account currently has more than three million followers. With 4.5 million followers, it is the cryptocurrency with the most followers behind Bitcoin. Shiba Inu, often known as the Dogecoin killer, is a close second with 2.7 million followers. In just one year, the Dogecoin Twitter account has grown by 681 percent in followers.
Dogecoin price surges began in 2021 with Elon Musk. He went out and tweeted to show his support for DOGE. Dogecoin investors often had an eye out for Elon Musk’s tweet, which continuously surged the price of DOGE—particularly following the announcement that Tesla will accept DOGE as payment for select Tesla-branded merchandise. Dogecoin achieved one million followers in April 2021 as a consequence of these rallies.
Will Elon go all in on Dogecoin?
On January 14, 2022, Elon’s tweet that Tesla will accept dogecoin for buying their merchandise surged the coin price almost by 20%.
The development of SHIB is considered due to Elon Musk sharing a photo of his Shiba Inu puppy on social media. This sparked speculation that Elon Musk will abandon dogecoin for a new meme token. But Elon has always shown his support for DOGE.
While it is possible to profit with meme coins, there is never a guarantee. These cryptocurrencies are much more volatile than conventional ones, and their value may drop instantly.
Do your homework before buying meme coins, just like you would with any other financial investment. Be wary if the coin has no history and information is difficult to get. A lack of a whitepaper or established team, as well as a whitepaper littered with typos and vague assertions, might be red flags.