One of the curious things about the cryptocurrency market is that even jokes can become serious enough to sustain the market. Dogecoin started as a practical joke with the popular doge meme for its emblem in 2013. Fast-forwarding a few years, it is currently one of the most sought-after cryptocurrencies with endorsements from popular figures like Elon Musk. The dog-faced coin has greatly utilized these years and has emerged relevant to the market despite the prevalent anti-meme-coin sentiments. How does a meme-coin achieve a feat as great as this one?
Well, it owes a significant portion of the success to the endorsements of prominent figures and the rest to its design and infrastructure. Although it closely followed Bitcoin, Dogecoin’s mode of operation significantly differs from the proof-of-work mechanism of Bitcoins. It makes for the transactions to be processed effectively and affordably. The meme-coin does not entail an expensive gas fee like the Ethereum blockchain.
Moreover, Dogecoin comes with a dedicated blockchain network, unlike other meme-coins that merely are some protocols running on other blockchains. Dogecoin is currently focused on becoming an effective mode of payment, unlike Bitcoin, which in time, has become a store of value. The minting and inflationary policies of Dogecoin are lauded by financial experts around the world. The unrestricted yet regulated supply of tokens would help the coin from volatility issues in the market.
According to a recent survey by Visa, small business owners from as many as nine geographical regions of the United States have expressed their interest in accepting virtual currencies for payments. As Dogecoin has the right infrastructure, it could easily become a leading digital payment option. Elon Musk has already tweeted about the plans to accept Dogecoin for buying Tesla merchandise. Although it does not extend to electric cars, the customers can buy an electric quad bike using the meme-coin.
Tesla has earlier dropped its plans for accepting Bitcoin due to environmental concerns. However, a recent tweet from Elon about accepting Dogecoin has given a push to the coin to reach the top 10. This push has resulted in a 25% growth of the coin in the market. Now the meme-coin is in a tight wrestle with Polkadot for the 10th position. The Dogecoin price prediction by CryptoNewsZ.com claims that the tokens would reach a value of $0.74 in 5 years.
Although Dogecoin has a history of giving a 45,000% return in the past, it currently trades 35% lower than its all-time high. However, prominent companies like Tesla and AMC, along with many other small-time vendors, have started accepting the meme-coin.