A headline from a Barron’s story from two years ago read, “With a $78 Billion Market Cap, Dogecoin Needs to Be Taken a Little More Seriously.”
At the time, a fervent online community and endorsement from well-known people like Tesla CEO Elon Musk helped the whimsical parody coin ride the hype wave. But when we reflect, it becomes apparent that the title hasn’t aged gracefully, much like the house of cards constructed on the hoopla around the meme-based digital currency.
Nate Geraci, the CEO of ETF Store, tweeted about the title: “Might be my favourite headline of all time.”
Early in 2021, Dogecoin’s value exploded, rising from less than a penny at the beginning of the year to over 69 cents by May. Retail investors were interested in the digital currency, and trading platforms like Robinhood were unable to handle the demand.
The cryptocurrency’s social component, which was introduced as a joke in 2013, served as a wind gust that fueled its explosive rise.
Online groups came together to support occasions like “Doge Day” on April 20, and many people credited the coin’s gains to Musk’s upcoming appearance on Saturday Night Live.
Dogecoin’s passionate community assisted in raising its market worth to a startling $78 billion despite the lack of a supply limitation and its little mainstream popularity. Many critics, however, correctly saw the currency as an illustration of market excess.
Today, Dogecoin has dropped 89% from its all-time high, serving as a harsh reminder of the cryptocurrency market’s erratic nature.
Even if the Dogecoin online community is still active, the coin’s precipitous decline serves as a warning about the dangers of following speculative investments based only on excitement.
