Doge coin created in 2013 as a joke by IBM software engineer Billy Markus and Adobe Software engineer Jackson Palmer, to create a peer to peer digital currency that could cover more demographics than bitcoin. Bitcoin is designed as scarce where as dogecoin is intentionally made abundant, around 10,000 new coins are mint every minute and there is no market cap to this. Palmer bought the domain dogecoin.com and added splash screen, logo and comic sans text to that. After seeing this, Markus approached Palmer and started developing the cryptocurrency. Markus designed the protocol based on Luckycoin and litecoin and used Scrypt technology in the proof-of-work algorithm. As Scrypt was used so the miners cant use SHA-256 bitcoin equipment to mine and have to use dedicated FPGA and ASIC devices to mine the currency. in 2013, around 50 millions hit were made on the website dogecoin.com and dogecoin jumped 300% in 72 hrs. This occurred when other cryptocurrencies were reeling from China’s decision for forbidding the banks to invest in bitcoin economy.
Within 3 days dogecoin tumbled 80% because of large mining pools and less computing power needed to mine at that time of mining.
But this is not where Dogecoin was talk of the town, dogecoin came to light when it started to trend on twitter (and became the most mentioned altcoin at that time) after the major theft that happened when the hacker gained access of the platform’s filesystem and modified its send and receive page to send the coins to a static address.
However, this didn’t stop doge-enthusiasts and even the community started “SaveDogemans” campaign to help donate to cover all the coins that were stolen and within the month, money needed was collected and compensated for the lost coins.
Dogecoin graph changed again in 2014 as it surpassed the trading volume of Bitcoin and all other cryptocurrencies combined and another thing that was changed with Dogecoin in 2014, was how the miners were awarded from randomized reward that they used to receive for each mining block, to a static block reward.
In 2015, Jackson Palmer announced “extended leave of absence” from crypto community and 2018, dogecoin total market capitalization reached USD 2 billion and the journey of dogecoin took an exponential rise in Jan 2021 with 800% high within 24 hrs and touched its all time high of $0.08 in Feb 2021, in March 2021, Mavericks and Caven announced the NBA tickets and products purchased with dogecoin and within 2 days franchise declared that it has become the biggest dogecoin merchant and had carried out 20,000 transactions. But Dogecoin didn’t stop there, in April 2021 it jumped 400% and touched its all time high in April 2021 of $0.45 with a volume of 70 billion traded within 24 hrs. When this blog was written. Dogecoin had a market capitalization of 50 billion and was 5th highest valued cryptocurrency where its values when launched to today is 7000% increased.
In May 2021 dogecoin jumped to $0.50 with 20,000% increase within a year, it touched $0.711 but dropped 34% to $0.47 within 45 mins of Saturday night Live with Elon Musk show and dropped to $0.401 which 43.6% drop and lost value around $35 billions.
The journey of Dogecoin is worth when considering the crypto market trends and how the market behave and how to consider internal as well as external factors that may affect the value. At this time Doge-1 of dogecoin is fully funding the rideshare mission to Moon with spaceX
Dogecoin isnt just any cryptocurrency but has some mainstream commercial applications like tipping system where social media users tip others for providing interesting and great contents, it is already been used to buy house and has been used for pornography and in poker industries.
Dogecoin can’t interact with smart contracts based on ethereum directly as it operated on its own blockchain but with Ren project (renDOGE) dogecoin can interact and be used on ethereum blockchain and can access DeFI network.
Dogecoin implementation is different from Litecoin and its blocktime is 1 min as compared to Litecoin where the blocktime is 2.5 mins.
The trends and growth of dogecoin is worth considering for any cryptocurrency casestudy and we hope the growth and the research continues.