‘Joke’ Bitcoin Rival Dogecoin Found To Have ‘Remarkably Strong Fundamentals’ As The Price Hurtles Toward $1 And A $100 Billion Market Cap
Dogecoin, the meme-based, tongue-in-cheek bitcoin rival that’s soared by more than 20,000% over the last 12 months, is still climbing.
The dogecoin price has added 130% in the past week, taking it to highs of 69 cents, as hype builds ahead of Tesla
Now, as trading platform eToro and cryptocurrency exchange Gemini add support for dogecoin, bitcoin and crypto researchers have released a report that’s found the memecoin has “remarkably strong fundamentals”—and warned dogecoin “should not be ignored.”
“Dogecoin has remarkably strong fundamentals and powerful forces supporting its rise: a genuine origin story, longevity, and a growing community of users who appear determined to meme a Shiba Inu-themed global currency into existence,” the Galaxy Digital Research report—titled Dogecoin: The Most Honest Sh*tcoin and authored by Galaxy’s head of firmwide research Alex Thorn—read.
“We don’t expect dogecoin to become the world’s most valuable cryptocurrency any time soon, but doge should not be ignored.”
The dogecoin price has rocketed from a mere fraction of a cent in January amid support from billionaires, YouTubers and rock stars, with dogecoin backers now within sight of their $1 per dogecoin token target.
Dogecoin, which was created in 2013 as a “joke,” has shot up the cryptocurrency rankings this year and is now the fourth most valuable digital token, behind only bitcoin, ethereum and BNB, a token issued by crypto exchange Binance. The dogecoin market capitalization, the combined value of the 129 billion dogecoin tokens in circulation, has climbed to almost $90 billion.
“Right now, dogecoin’s price is boosted by its ‘retail-rebel-Reddit’ following: it costs so little, that retail investors can hold a lot of dogecoins; it has also taken over the ‘rebel’ role that bitcoin used to have (two fingers up to the establishment); and it has the backing of the same Reddit forces that took on the big institutional investors with GameStop
“It is a low-cost, high-risk investment with the potential for massive returns–which can’t be found elsewhere at the moment.”
Elon Musk, who enthusiastically embraced dogecoin after being voted dogecoin CEO in a 2019 Twitter poll, in February said “the most entertaining outcome is the most likely.”
When it comes to bitcoin and cryptocurrency, he may have been right.
“In our view, current dogecoin volatility is fueled by mania, but it is likely that dogecoin will continue to be part of this cryptocurrency story over the long run, always in bitcoin’s shadow, but always lurking and periodically outperforming to surprise us all,” the Galaxy researchers wrote, adding “dogecoin’s longevity is ensured so long as one truism remains: people love a good joke.”