Traders and the internet community call Dogecoin the "Musk's favorite crypto", "meme-coin", "joke token", and "canine coin". This cryptocurrency started as a joke but today it has received so much attention that is high time to take it seriously. Let us take a deep dive into the mystery of Dogecoin's popularity.
Over the last year, the DOGE has surged by 82 times. The main reason for such a sensational takeoff was a series of tweets by the CEO of Tesla, Elon Musk.
Elon Musk was not alone to support Dogecoin. High demand from a new generation of traders became another reason for the canine-faced meme currency's success. A couple of years ago it was unknown crypto but somehow a lot of investors instantly fell in love with it. According to Coinbase crypto exchange, the DOGE trade volume outperforms Etherium's one.
Robinhood recently reported that the share of digital currencies in total trading commission revenue increased to 41% in Q2 from 17% in the previous quarter. The second quarter showed that 62% of online cryptocurrency commissions came from Dogecoin trading.
However, the market experts are skeptical about DOGE. They keep calling it a marketing ploy and doubt its real value, adding that it is another Musk's toy.
According to BitInfoCharts statistics, a survey of more than 10 different blockchains showed the meme-coin spectacularly competes only with the private cryptocurrencies such as Monero, ZCash, and Dash, while seriously losing to ETH and BTC by transaction count.
Dogecoin has a significant advantage over other cryptos. The commission for a transaction takes only 1 DOGE. However, it also has serious disadvantages. The Dogecoin block time is one minute while Etherium creates a block in 12.5 seconds. Also, Dogecoin has inflation, while bitcoin has a deflationary model and Ethereum can keep a significantly reduced inflation rate after the London Hard Fork update. In addition, Dogecoin raises serious doubts in terms of both network security and keeping the code up-to-date.
