Has Dogecoin Broke Beyond ‘Crypto Meme’ Status? was written for Playlouder by a contributing author. Please note that contributing opinions are that of the author. They are not always in strict alignment with my own opinions. –Joe.
The financial world did not expect or anticipate Dogecoin. Initially created in 2013 as a lighthearted parody of the cryptocurrency market – still in its infancy.
Convincing people that there was scope and legitimacy to its claims – Dogecoin featured the face of the famous Shiba Inu dog from the “Doge” meme as its logo.
Ironically, today, Dogecoin is being taken seriously in some circles. Traders like it. Investors like it. The coin both sheds and reaffirms its crypto meme standing despite it being a viable trading and use option.
In this article, we'll explore how Dogecoin has broken beyond its ‘crypto meme' coin label, how the Dogecoin price has risen since its inception, and how it’s becoming a viable digital asset with a growing community of supporters.
The Rise of Dogecoin
The story of Dogecoin's rise is a testament to the power of internet culture and community engagement.
Created by software engineers Billy Markus and Jackson Palmer, Dogecoin was meant to be a satirical cryptocurrency with no real utility. However, its friendly and approachable nature, coupled with the popular “Doge” meme, quickly captured the attention of internet users and the cryptocurrency community.
Early supporters embraced the fun and philanthropic spirit of Dogecoin, using it to raise funds for charitable causes and tipping content creators online. The coin's low value and abundant supply made it accessible to a broader audience, contributing to its growing popularity.
Doge was also seen as an accessible entry point into cryptocurrency for new investors. The thought of investing in Dogecoin is a lot less intimidating than other cryptocurrencies, and this played a significant part in its growth over the years.
Pop Culture and Media Attention
Numerous references in popular culture and media have bolstered Dogecoin's journey into the mainstream.
The coin's iconic Shiba Inu logo and lighthearted reputation have made it a favorite subject for memes, internet jokes, and even references in television shows and movies.
As more people became aware of Dogecoin through these cultural references, its ‘meme' status began to fade, and it gained credibility as a legitimate cryptocurrency.
Elon Musk's “Endorsement”
When Elon Musk lends his voice to topics, they take on a different shape. Many things have undergone such a mutation. Doge is one example.
In fact, he is currently embroiled in a lawsuit over his activity. According to Yahoo Finance, “Investors claim that Musk used various means such as Twitter posts, payments to online influencers, his 2021 appearance on NBC's “Saturday Night Live,” and other attention-grabbing tactics to trade Dogecoin for his own gain at their expense.”
The Tesla, SpaceX, and X (formerly Twitter) CEO has undeniably contributed to Doge’s bounds. His tweets have caused significant price fluctuations, with the coin experiencing rapid surges and drops in response to his social media activity.
Wider Acceptance and Use Cases
Despite its origins as a joke, Dogecoin has found real-world use cases beyond internet tipping and charitable donations. Adoption rates and trading volume have convinced businesses to accept Doge as a payment method.
Dogecoin has also been used, or investigated for use, with Peer-to-Peer lending, sports bettings, charity fundraising, and various tipping implementations.
For consumers, it offers what many crypto tout: fast transaction times and low cost. This has led to an increase in Dogecoin's utility as a medium of exchange, further solidifying its position in the crypto market.
Community and Developer Support
Crypto inspires passionate support. Doge – independent of Musk’s adulating and fervent supporters – has a dogged community.
While trading volumes will vary, and the percentage of those trading vs. those holding fluctuates, there is a steadfast few that – because of its meme status – value Doge’s stance in the wider crypto community, promoting its development to novice and experienced traders and investors alike.
Doge developers are very keen to routinely improve the coin’s technology and infrastructure. Its key coin target, Bitcoin, hasn’t undergone any serious changes in a long time, so Dogecoin is trying to close the gap and exceed Bitcoin through an inspiring community and technological improvement and innovation.
Mainstream adoption is a tough obstacle for a lot of cryptocurrencies. Dogecoin is no different.
Market volatility is one such factor: no one knows how a coin’s price will swing based on internal and external factors. Additionally, its supply is (technically) unlimited – a unique feature for major coins – raising the issue that, with a sharp demand surge, inflation could rise to untenable levels.
Furthermore, as with any cryptocurrency, regulatory scrutiny and market sentiment can have a substantial impact on its future trajectory, potentially affecting its growth and adoption.
This chart shows the price of Doge over time since its inception.
The Use of the Meme Coin Label
Memecoins find inspiration in ephemeral – yet somewhat concrete – internet jokes and trends. Celebrities – micro or macro – sometimes lend their platform to discussing them.
Doge isn’t the only meme coin. It is the biggest as things stand, but it is not alone. While Dogecoin gets its name and iconic Shiba Inu mascot from the meme, a Shiba Inu coin has been launched.
It’s hard to argue whether it is more or less subtle than Dogecoin as a meme, but maybe both its subtlety and its explicitness are the point. Either way, its market cap and trading volume aren’t too far from Dogecoin, but still far enough away to give Dogecoin some breathing room.
Beyond these two, there is Pepe, Floki, Baby Doge Coin, Dogelon Mars, and Doge Killer – plenty of riffs on Shiba Inus and Doge. In short, meme coins are rife.
The Memecoin Dilemma
Dogecoin set meme coins off initially as a critique of the crypto market. Now, though, that doesn’t need to be the case. They are simply cryptocurrencies trying to get off the ground.
However, many memecoins exist for existing. Their utility is limited to simply its cultural and social appeal – to own a piece of a cultural signifier – and their adoption, as a result, is equally limited.
Their directionless launch creates problems that the developers aren’t necessarily interested in solving.
Dogecoin has undeniably broken beyond its ‘meme' coin label, transforming from a lighthearted internet joke to a serious and viable digital asset. Its journey has been shaped by community engagement, celebrity endorsements, and pop culture references, leading to wider acceptance and use cases.
However, as with any investment or technology, potential investors and users should exercise caution and conduct thorough research. The cryptocurrency market is known for its volatility and uncertainties, and Dogecoin is no exception.
As the cryptocurrency landscape continues to evolve, Dogecoin's future remains uncertain. Its ability to maintain momentum, overcome challenges, and solidify its position in the crypto market will depend on its community's continued support and its ability to adapt to changing market conditions.