The price of Dogecoin soared more than 25% on Tuesday. The cryptocurrency value, initially designed as a joke, raised to nearly $0.10 per coin. Both the price and popularity of Dogecoin reached historic levels.
The price increase comes amid a significant rise in the volume of its trades. According to CoinMarketCap, it increased by 56% in the last 24 hours.
Dogecoin price growth has become one of the most relevant stories of 2021. Big names like Elon Musk, Snoop Dogg, and Mark Cuban are proud members of the “Dogecoin Army,” as evidenced by a significant number of DOGE-related tweets on their accounts.
Major cryptocurrencies like bitcoin and ethereum have also soared to record highs. On Tuesday morning, for the first time, bitcoin surpassed $63,000. Retail investors have been highly bullish lately regarding cryptocurrencies. It is due to the highly anticipated initial public offering for cryptocurrency exchange Coinbase, taking place today.
However, the vast majority of fund managers believe that high prices are the result of a bubble. The use of cryptocurrencies as a payment form has also gained much more acceptance among large companies lately, including firms like Tesla and PayPal.
As one of the smallest crypto tokens, Dogecoin has been subject to much greater volatility than its more conventional counterparts, such as bitcoin and ethereum. One of the most significant spikes for Dogecoin came immediately after Elon Musk mentioned it on Twitter.
How Was Dogecoin Created?
The creators of Dogecoin intended their crypto concept to be a joke, based on the famous dog meme. Doge, which became popular in 2013, displays a photo of a Shiba Inu dog.
The cryptocurrency has become immensely popular, especially among Redditors.
Even though the meme has evolved, it is still a Shiba Inu dog with funny phrases.
The Dogecoin was invented in December 2013 by Billy Markus, a programmer, and former IBM engineer. At that time, Bitcoin was getting an awful reputation for being involved in black market transactions on the Dark Web. Markus wanted to create a substitute that had nothing to do with such shady issues.
The Dogecoin is Litecoin based, and its operation is similar to other cryptocurrencies. You need a computer program to solve the complex algorithms with which you mine the cryptocurrency. Like Litecoin, Dogecoin also uses a cryptographic program called Scrypt. It allows faster mining speeds than others, such as Bitcoin. Transaction speed is also faster. It means that payments through this cryptocurrency can be faster than BTC. Besides, the maximum and total amount of Dogecoins that can ever exist is 100,000 million. Contrastingly, in the case of Bitcoin, this number comprises 21 million.