DOGEcoin cryptocurrency is a digital currency that appeared in 2013. Cryptocurrency gained popularity largely due to the sensational Internet meme, which became its logo. During the existence of DOGE, the price of the currency changed repeatedly, and the jumps were quite significant. In total, the price could change by 100% or even more during the day.
DOGEcoin is developed on the Scrypt algorithm. It is based on the Luckycoin coin, a fork of the popular Litecoin cryptocurrency. The blockchain operates on a Proof-of-Work consensus algorithm: security depends on the miners who connect the equipment to mine new coins. Thus, the more computing power miners use, the higher the complexity and reliability of the network.
Unlike Litecoin, new blocks are formed in 60 seconds. This significantly reduces transaction time. Users make payments without lengthy confirmation and with small fees.
Initially, the total issue of DOGEcoin was 100 billion coins. However, the developers decided to make artificial inflation to maintain the rate of the coin. Thus, the number of coins increases by 5% annually. There are currently 126 billion coins available on the market. Artificial Doge inflation can be considered both a plus and a minus. On the one hand, miners will actively promote the currency and increase its demand. But on the other hand, with a stable market, the value of the coin will decrease every year.
Another feature of DOGEcoin is regular price jumps. They are largely driven by market speculation. Since the cryptocurrency has a low price, one person can buy a sufficiently large number of coins, which will provoke a change in value.
Dynamics of the Dogecoin exchange rate
After its introduction, DOGE quickly attracted the attention of users. Just a week after the launch, the value of the coin increased by 300%. The rise was due to the fact that Chinese banks were banned from making investments in Bitcoin, so many altcoins rose significantly in price. At the beginning of 2014, DOGEcoin also showed a good growth of 400%. Then it entered the top ten largest cryptocurrencies, but did not last long there — within two months it lost a lot in value and slipped into the fourth ten of the list.
In 2015, one of the founders left the project and many people said that the project would be closed. The cost of one coin was even lower than at launch. But thanks to the active support of the community, the cryptocurrency has kept afloat.
Until 2017, the price of cryptocurrency has not changed much. In may 2017, it began to grow rapidly following the major currencies. The cryptocurrency reached its peak value on January 7, 2018 — then one coin cost $ 0.17, and the total capitalization exceeded $ 1.9 billion.
During the first half of 2018, the DOGEcoin exchange rate followed the market movement. In January, the price of one coin fell sharply, then there were several jumps in the price. But in November, while the majority of coins set anti-records, DOGE almost did not lose in price-thanks to this, it came out on the 20th place among all cryptocurrencies.
2019 passed without strong jumps — ONE Doge coin on average cost 0.02 dollars. The coin has grown slightly in 2020. Many cryptocurrencies are now showing more confident growth, but analysts say that DOGEcoin also has prospects for an increase in value. Now the coin is worth 0.025 dollars, and the capitalization exceeds 300 million dollars. DOGEcoin is ranked 45th among all cryptocurrencies.
Dogecoin exchange rate forecast
Analysts ' opinions on the future of DOGEcoin are mixed. Some believe that due to artificial inflation, the cryptocurrency is stagnating. Now it is kept at the same level and is growing slightly, but in the future, in a stable market, it may lose in price.
At the same time, most analysts still believe THAT Doge still has prospects. This is evidenced by the success of several fundraising companies and the popularity of the currency among traders who use DOGEcoin to withdraw funds from exchanges. Thus, in 2020 and 2021, DOGEcoin can show good growth, especially in the context of the growth of the entire cryptocurrency market.