Dogecoin (Cryptography: Doge) It was the original meme token for the cryptocurrency industry. It was created as a joke by two friends in 2013. He was inspired by the “Doge” memes that were spreading throughout the Internet, like Wildfire at the time.
Dogecoin has become a vessel for speculative investors because it is barely useful in the real world. Nevertheless, it managed to outperform most major cryptocurrencies in 2024, including Bitcoin, Ethereum and XRP (Ripple).
According to the chart above, most of these profits came after November 5th. This is when Donald Trump won the presidential election after campaigning with a series of code-friendly policies. Dogecoin Investors received a special cherry on top thanks to Elon Musk.
However, meme tokens plummeted 55% from their post-election peak. Is it the ultimate purchase opportunity or a sign to run for the hill? Let’s look into it.
Elon Musk has been supporting Dogecoin since 2019. He posts memes about cryptocurrency on social media, joins in friendly jokes with other enthusiasts, and his electric car company Tesla accepts it as a payment for the goods.
On May 8, 2021, Musk even took part in a dogcoin-themed skit at a Saturday night live show. The tokens surged to a record high of $0.73 during the show. However, there were times when they were peaking. Over the next few months, I began to lose more than 90% of its value.
That’s not surprising given the highly speculative nature of Dogecoin. The token remained predominantly dormant for most of 2023 and 2024. However, last November’s presidential election ignited a fire under cryptocurrency, as it promised to make America the crypto capital of the world. The Securities and Exchange Commission has begun to suspend some of its legal cases against crypto companies, suggesting that the industry has more regulatory freedom to invent new use cases to create value for investors.
Shortly after Trump won the election, he also announced that Musk would run an external agency called the government’s Department of Efficiency, or Doge for short. The goal is to help governments cut government spending to balance budgets. Although it has no role in the crypto industry, investors have interpreted the agency’s name as a clear reference to Dogecoin, Musk’s favorite cryptocurrency that has soared tokens.
The key to creating currency value is adoption. Companies need to accept it as payment for goods and services. Because it gives consumers a reason to buy and hold it. Unfortunately, there are only 2,025 companies accepting Dogecoin from around the world, many of which are obscure providers of internet, cryptographic services, and even gambling websites. It’s a fall in buckets considering there are over 350 million registered companies around the world.
The story continues