As Bitcoin goes, typically alt-coins follow. But amid the pack of falling price points, one coin is actually trending up. Dogecoin (DOGE) has seen its value shoot up over the past couple of weeks, all without any major correction. Traders are seeing the alt-coin hit prices it hasn’t touched in seven months, with a recent high at $0.0069 USD. So what’s behind the meme-based joke coin that’s giving it some of the only real bullish momentum right now? What’s the secret to Dogecoin’s sudden success?
The Real Reason For Dogecoin’s Sudden Success
Sometimes dismissed as a joke coin, Dogecoin is anything but. Even though its profile comes from the legendary Doge meme and was launched in the spirit of playfulness common among crypto enthusiasts, it’s still a highly functional and popular token. Like it’s bigger counterparts Bitcoin and Litecoin, Dogecoin is a peer-to-peer digital currency. But what makes it unique is the unshakably loyal cult following it has garnered since its inception.
There are over 100,000 subscribers to the Dogecoin subreddit. Its community is loyal, committed and most importantly, active. But that’s not the only thing Dogecoin has going for it.
For an alt-coin, Doge is incredibly nimble. Fast, cheap and stable, it also boasts the lowest transaction fee of other major coins. Combine that with a large coin supply, ongoing code development, and an almost fanatic user base, and you’ve got an enviable recipe for success.
2017: Dogecoin is a joke
2018: Dogecoin is making your cryptocurrency look like a jokeDogecoin's 24hr tx volume is:
3x of BCH
8x of LTC
13x of DASH
35x of DCR
41x of BTGDogecoin may have started as a joke, but their community is now the envy of the crypto world pic.twitter.com/YXIzqJWHez
— Kevin Rooke (@kerooke) September 10, 2018
The proof is in the technical data. Dogecoin is many cryptocurrency traders’ first choice for fast and cheap blockchain transactions. And yesterday, its 24-hour transaction volume was three times greater than Bitcoin Cash and eight times that of Litecoin. Furthermore, Dogecoin ranks third among all other cryptos for the number of active addresses. In short, people are using Dogecoin—a lot. And that’s the most significant reason for its sudden success.
Dogecoin Has A Lesson For Other Cryptos
Many forces are pulling cryptocurrency prices down right now. But the success of Dogecoin has an important lesson for all of them. Cultivating a loyal and active fan base can sustain a crypto even in a bearish market. Activity, making people want to actually use a coin rather than simply hold it as a value store, is key. The easier it is for people to use a cryptocurrency, the more money can go into it.
But there are other factors contributing to Dogecoin’s uptrending value, too. The super-popular trading app Robinhood recently listed DOGE as available for trading back in July. Yahoo Finance also added support to it’s trading ecosystem through TradeIt, allowing users to trade DOGE on their mobile device. There’s even a petition to make Amazon.com accept Dogecoin as a form of payment. That popular appeal is helping sustain the alt-coin and given it momentum without any of the hype or speculation that usually jostles the cryptocurrency market. For many traders, that’s a sign that Dogecoin’s success is real.