Why Dogecoin Investing Has Exploded in 2021

Without doubts, 2021 has been an amazing year to invest in digital assets. Several cryptocurrencies this year have created a big splash as they continue to hit all-time highs in the first few months of the year. One of such cryptos is Dogecoin. The altcoin has enjoyed amazing moments among the crypto community this year, and judging by the market trends and predictions, Dogecoin is definitely going to keep exploding all through the year.

In a space of 2 months, Dogecoin has seen a tremendous increase of about 978%. The crypto started its journey at $0.0099 before surging all the way, hitting an all-time high of $0.42 in May 2021. Although the coin has been on the market for many years, its bullish run this year has shown that Dogecoin is one of the cryptocurrencies that are going to explode this year.

In the first week of June, Dogecoin investors received the good news that the coin was added to Coinbase, one of the world’s most popular cryptocurrency hubs. Immediately after the announcement, Dogecoin price surged up a whopping 33%, bringing the asset to a clean new high. As of the time of writing this article, the price of Dogecoin is $0.26, and crypto analysts have predicted that the price will continue to soar in the coming months based on previous market activity.

Wondering why Dogecoin investing has received so much attention this year, here are some reasons behind the surge and popularity of the coin which started as a mere internet meme. Meanwhile, if you wish to know more about what Dogecoin is and its price history, you can check this beginner’s guide to Dogecoin.

Why Dogecoin Investing Has Exploded In 2021

#1: The Popularity of the Doge Meme

The Dogecoin was named after the Doge meme that went really popular in 2013. The creator of the cryptocurrency initially created Dogecoin as a means of getting people more aware of blockchain technology. The movement rode on the existing wave of popularity the Doge meme was already enjoying at the time. When the coin was named after the meme, it immediately got popular in the crypto space as it blends a highly technical concept with an element of fun. The popularity of Dogecoin from the time of creation was one of the things that contributed to its popularity this year.

#2: Dogecoin’s Security Features

Blockchain technology is known for its security, and Dogecoin has even further emphasized that. Dogecoin is an open-sourced peer-to-peer network that uses a proof-of-work consensus mechanism like Bitcoin. However, the altcoin uses the scrypt mining algorithm which has lower hash rates and less energy demanding.

#3: Doge Rally

Despite getting stuck between $0.0018 and $0.0036 for years, the coin received a new momentum this year as it picked with a range of $0.0141, breaking the long-time resistance. Through the few months already spent in the year, Dogecoin has surged even higher in price, hitting an all-time high of $0.360 in April 2021.

This was what further increase its popularity and enhance its acceptance in the crypto community. More and more investors and crypto enthusiasts believe Dogecoin is set for a new rally and is going to explode in 2021. So far the coin has not disappointed them.

#4: Popularity Amongst Celebrities

One strong force behind the popularity and wide acceptance of Dogecoin this year, which has also contributed to its increase in price, is its popularity amongst celebrities, particularly Elon Musk. The Tesla CEO has been quite vocal in his tweets about Dogecoin. In one of his recent tweets, he stated that Dogecoin might be the future currency of the earth.

Shortly after making the tweet, Dogecoin’s price surged amazingly. In fact, he once announced himself as the unofficial CEO of Dogecoin. Dogecoin was able to break its $0.06 resistance after Elon Musk’s tweet — the coin surged at almost 300%.

Elon Musk is not the only celebrity strongly in support of Dogecoin. We have some more that have declared their love for the meme cryptocurrency. Some of them include the famous rapper Snoop Dogg. The rapper declared that he has changed his name from Snoop Dogg to Snoop Doge. After the hilarious tweet, Dogecoin experienced a surge of about 55%, hitting an all-time high.

Gene Simmons, Kevin Jonas, and several other celebrities contributed to the popularity of Dogecoin and have contributed to what made the coin explode in 2021. If the coin continues to enjoy fair support from celebrities, it is likely going to reach its $1 target before the end of the year.

#5: Doge’s Unique Features

Being a cryptocurrency created from a fork of Litecoin, which itself was a fork of Bitcoin, the altcoin combines Bitcoin’s codebase with some other unique features. This makes it even more acceptable in the crypto world. Dogecoin has relatively faster blocks than BTC. While Bitcoin has an average block time of 10 minutes, Dogecoin block time is about 1 minute. That means transactions are much faster in Dogecoin, hence attracting lesser fees.

#6: Growing Adoptions and Advancements

Dogecoin is one of the few cryptocurrencies today that have grown really well in adoptions. Many online stores today now accept Dogecoin as their reliable payment option. CoinFlip recently announced that users can now easily purchase Dogecoin with cash across its 1800 ATM network. Bitpay, one of the largest providers of crypto payment services also now offers DOGE as a mode of payment worldwide.

With all these developments and many more, one can easily conclude that Dogecoin has indeed exploded in 2021. Thinking of investing in Dogecoin? Now is just the time to do so.