The year 2023 started off great for the crypto industry, but the market cap has now dropped below the psychological threshold of $ 1 trillion. Dogecoin (DOGE) is no exception to the woes and has also rebounded quite a bit from the highs of the previous bull run. That does not alter the fact that the memecoin has made people very rich in the past and many hope for a repeat of moves in the future.
Dogecoin’s rollercoaster ride and Musk’s tweets
Dogecoin reached its provisional all-time high of around $0.74 each in May 2021. It achieved that record partly thanks to tweets from Tesla CEO Elon Musk, who is a big fan of the project because of his affinity with memes and internet culture. This is generally reflected in tweets of this caliber:
After the Dogecoin price shot up again in November 2022, there were suddenly more than 1,000 Dogecoin millionaires. However, this number has since plummeted to around 600 addresses holding a balance of $1 million or more in DOGE. This is evident from recent data, which was retrieved on March 10, 2023 from the always interesting BitInfoCharts.
Dogecoin currently sells for $0.06495 each and has dropped 14.98 percent in the past 7 days. With those declines, virtually all of the profits the project made from the start of 2023 have been wiped out and more Doge millionaires are in danger of disappearing.
From meme to valuable cryptocurrency
The special thing about Dogecoin is that it is a cryptocurrency that was created as a joke in 2013 by programmers Billy Markus and Jackson Palmer. However, the project has since gained a loyal following and is one of the most recognizable and valuable coins on the market. The project is based on blockchain technology just like Bitcoin and is designed to enable fast, secure and low-cost transactions.
Unlike Bitcoin, Dogecoin has no restrictions on the total supply of coins and there are currently more than 130 billion in circulation. Bitcoin, on the other hand, has an absolute scarcity of 21 million units. Transactions within Doge’s network are validated by a network of computers that we call “nodes” in technical jargon.
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