Every investor knows the Dogecoin token. However, most investors don’t remember that the token was established as a parody following the establishment of the crypto market via Bitcoin.
The token’s founder, Jackson Palmer, also tweed about his creation on 28th November 2013 as a joke. As per the founder, he would be investing in this upcoming token because Dogecoin would be the next big project in the future.
Fast forward to 2022, and what started as a joke is a hyped reality today. Thanks to the consistent support from the crypto community and some big names, including Elon Musk, Snoop Dogg, and famous Youtuber turned celebrity Jake Paul.
But what’s Dogecoin behind all the hype? What are the fundamentals that make the token unique? Let’s find out in the sections below.
Dogecoin: What Led To Its Boom
While DOGE was established in 2013, it wasn’t until 2019 that the token received immense attention after Binance listed DOGE in its exchange. Adding to it is the continuous support from Elon via his cryptic tweets throughout 2019 that added to the authenticity of the token’s future.
The entrepreneur later claimed that he had started working with Dogecoin’s team to improve transaction efficiency in 2021. Following this, cinema chain AMC Inc. (AMC Entertainment Holdings) announced that it would accept DOGE for gift card purchases, further increasing the utility of the meme token.
Currently, hundreds of businesses accept Dogecoin as legal tender. Adding to it, payment processors like Coingate also accept Dogecoin as a means of payment. This way, investors can easily convert their DOGE into gift cards from brands yet to accept the token as legal tender, adding to the token’s utility.
However, that’s not all that has hooked the investors to the token. Listed below are some features that set DOGE apart from other coins in the market.
- No Maximum Supply:
Unlike other cryptocurrencies with limited supply, Dogecoin has no maximum threshold. Currently, the token rewards miners with 10,000 DOGE on one block, and the ecosystem generates a new block every minute via Scrypt technology.
This way, the DOGE ecosystem generates over 14,400,400 new coins daily to be sold in the open market or stored in the minder’s wallets. Currently, $132.67 billion tokens are in circulation, with a total valuation of $79.08 billion and a price of $0.06.
- Decentralized Nature:
Decentralization is part of the security governing most cryptocurrencies, meaning that security is in the hands of a collection of users worldwide. The decentralized nature of a cryptocurrency is usually measured by the number of nodes on its network and miner distribution.
According to block explorer, Blockchain, Dogecoin has about 1,090 nodes compared to 10,000 nodes over 97 countries for Bitcoin. This makes the Dogecoin network comparatively secure and a better-decentralized ecosystem to invest upon.
- Faster Transaction Processing Speed
Faster, more streamlined transaction processing has been one of the primary aspects of the Dogecoin token. As a result, Doge’s rapid transaction processing speed adds to its core value compared to other tokens.
Since the token is quite straightforward with its mining process, blocks are processed more quickly over its ecosystem. DOGE operates at one block per minute, making it 2.5x quicker than LTC. Besides, the ecosystem requires just 4 DOGE Blockchain to confirm and complete the swap.
Besides, now that we have an idea of the different fundamentals backing the token let’s look at the added advantages of investing in Dogecoin.
Top Reasons To Invest In The Doge Token
#1 DOGE Is Hype Resistant
If you have been paying attention to the cryptocurrency market, you must be aware that the rise and fall in the price of DOGE are not the results of media hype.
That’s a sign of a stable cryptocurrency, then!
Dogecoin has a specific target market, which has helped to make DOGE more useful by allowing users to support entertainment sector creativity by providing educational material.
The market’s lowest circulation supply is likely DOGE, which is mineable. As time passes, its supply will become less plentiful, and its worth will be determined by scarcity.
#2 It’s A Great Investment Opportunity
It’s common among investors to look for crypto tokens that can act as a safety net to cushion their portfolio from the rapid volatility of the market. This is where meme coins like Dogecoin are an ideal fit.
The token is comparatively cheaper than the prices of other established tokens and is known to give out relatively better returns in a short span. This way, every type of investor can put their money on the DOGE token and get better returns without risking their money in the volatility factor or negative returns.
Interestingly, this also adds to significant monthly profits. In addition, due to the wide price variations on the Internet, some investors decide to purchase and sell a significant amount daily by keeping an eye on the current performance of the token. So, if you determine that now is a great moment to invest in the DOGE Cycle, you will make money on its sale.
#3 Reliable Future Investment
Dogecoin has a great future. The token currently has a $79.8 billion overall market value, and Dogecoin has risen to the 10th spot on CoinMarketCap. While this may seem like a lot, a sudden increase in popularity might propel this coin forward in the future.
While several cryptocurrencies may now be engaged in significant initiatives, DOGE depends entirely on chance. Nevertheless, DOGE has demonstrated that it can generate active trading despite going to a higher price range and might reach the $1 mark in the future.
#4 Growing Community
One of Dogecoin’s benefits is that its user and supporter base is well-established and expanding. In market capitalization, it is one of the top 10 cryptocurrencies globally. In one instance, it was even ranked fourth. According to Cuban and Musk, its expanding user base makes it an excellent means of transaction.
Interestingly; the community is also known to donate approximately $30,000 for funding the Jamaican bobsled team’s trip to the 2014 Sochi Winter Olympics, a donation worth $11,000 for building a well in Kenya, and USD 55,000 to sponsor Josh Wise’s NASCAR event.
Should You Invest In Dogecoin?
Considering such high prospects and added utility via payment processors like Coingate, it’s only evident that you invest in the DOGE token. However, when investing in the token, ensure that you safeguard your token by moving it to a hardware wallet. All the best!