This virtual currency has come from being just a parody, as many claimed, to a market capitalization of over one billion dollars.
Dogecoin was first launched on December 2013 as a virtual coin derived from Litecoin. Blockchain is the technology that stands behind Dogecoin, the same as Bitcoin’s. Even if there are few commercial applications created for Dogecoin, the currency is gaining its earnings through tip. Social media users offer a small amount of Dogecoin to other users in exchange for remarkable content.
Some financial analysts are saying that the growth of Dogecoin and many other unknown virtual coins is happening because of their price. Comparing the price of a new small cryptocurrency with Bitcoin or Ethereum, it will probably be considered very cheap. If we make a comparison of the price, the difference is enormouss. Bitcoin was trading today at almost $15,000 and the price of Dogecoin is currently $0.010360. According to CoinMarketCap, the market capitalization of the currency, is $1.17 billions of dollars.
One of Dogecoin founders has stated that the Dogecoin appreciation is a bit overwhelming and that it makes him worry regarding the excess of the market.
Moreover, it has been noticed a massive demand in Dogecoin that is constantly growing.
Last month, the virtual currency has benefited from a 400% appreciation, reaching the price of $0.0107 by the end of December 2017.
The meteoric rise of Dogecoin from the past months, has determined the project creator to express his opinion about it. Dogecoin founder, that left the team in 2015 has declared in a twitter post that it is incredible how this cryptocurrency is having such a big appreciation, even if the developers haven’t performed any software updates in the past two years.
The CEO of Octagon Strategy trading company is blaming the growth of altcoins on their cheap prices. The perception of small prices it what entices people to trade with them. He added that the most popular coins, Bitcoin and Ethereum are considered to be way too expensive for the majority of investors.