Markets tanked during the early hours of Sunday morning UTC, with Bitcoin falling $ 10k within hours. While Dogecoin also suffered a dip, the decline was trivial compared to the rest of the market. By noon, DOGE had recovered and was gaining 12% by the end of the day.
Source: DOGEUSD on TradingView.com
Numerous numbers have emerged to warn of Dogecoin’s lack of fundamentals. But as seen on Sunday, DOGE proved more resilient than “blue-chip” offerings. This begs the question, what will happen to Dogecoin?
Dogecoin is not showing any signs of slowing down
Dogecoin’s rapid rise last week saw it rise to $ 0.47 on Friday, before returning some of those gains over the weekend. While the total cryptocurrency market cap took a major hit, falling from $ 2.2 trillion to its low at $ 1.9 trillion by noon, the impact on DOGE was minimal.
While Cardano and Polkadot suffered percentage losses in the mid-1920s and have yet to recover to pre-flash crash levels, Dogecoin is currently up 20% from the time of the dip.
Critics argue that DOGE is a joke that should not be taken seriously, citing issues such as the lack of development and the never-ending supply of tokens. But at the same time, others have said it is attractive to have fun in an otherwise serious industry.
Co-founder Billy Markus hopes his creation could be the antithesis of cryptocurrency’s dark side. That’s the greed, the scams and the FOMO mindset that pushed him out of the industry in 2015.
Joy, kindness, learning, giving, empathy, fun, community, inspiration, creativity, generosity, folly, absurdity. Things like this are what makes Dogecoin worthwhile for me. When the community embodies these things, it is True Value. “
Whether you love or hate it, an important part of DOGE’s appeal is its status separate from the crypto norm.
DOGE as a payment method
In response to DOGE mania, IOG CEO Charles Hoskinson recently posted a video calling Dogecoin a “pet rock.” He attributes the rise to a combination of Elon Musk and clever whale manipulation. Since there is nothing underlying the price, he warned that retail investors would be hurt if something goes wrong.
The original use case for Dogecoin was as a tilt mechanism to show appreciation to content creators. However, thanks to billionaire Mark Cuban, it looks like DOGE has a new use case as a payment method.
At the beginning of the month, Cubans Dallas Mavericks announced it would accept DOGE as payment for merchandise and tickets. Cuban tweeted that the experiment was a smash hit, selling $ 122k worth of merchandise. More interestingly, he said he would never sell the DOG he deserves.
FYI, the sale of the Mavs in @dogecoin have increased 550pct in the past month. We have now sold over 122,000 Doge’s merchandise! 🚀🚀🚀 We will never ever sell a single Doge. So keep buying @dallasmavsshop https://t.co/li32cdtcED
– Mark Cuban (@mcuban) April 14, 2021
The reasons for this are unclear. But Cuban did let it go that Dogecoin is a fun and engaging way to generate PR.