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Prior to December 2013, no one in the history of mankind had built a currency based on a dog. And not just any dog. But a Japanese Shiba Inu hunting dog named Kusama.
If you've had an Internet connection in the past 10 years, you can't have missed out on the 'doge' meme featuring Kusama and typically surrounded by Comic Sans phrases like 'wow', 'what r u doing?', 'so scare', 'concern' and 'keep your hands away from me'.
Two software engineers – Billy Markus and Jackson Palmer – decided to satirise wild speculation in the 2013 crypto market by creating Dogecoin. The DOGE token had zero utility and an unlimited supply. It was the most wild-card currency ever invented.
Not even the founders believed Dogecoin had a future.
As of July 2022, Dogecoin is the tenth largest cryptocurrency by market cap ($8 billion) and is very serious business. The top 100 Dogecoin wallets are all worth over $6 million – the top five Dogecoin whales have wallets worth over $60 million.
Even during a bear market in July 2022 the price of Dogecoin is still 78,000% above its all-time lows. Had you bought $100 of the joke when no one else was interested, you would have a wallet worth $78,000 today.
The question today: is Dogecoin still a good investment in July 2022?
Read on to find out.
Following the launch of Bitcoin in 2009 – and the Bitcoin Pizza Day in May 22, 2010 – there was an explosion of new cryptocurrencies all vying for investor attention.
(Bitcoin Pizza Day refers to the first documented pricing of Bitcoin, when a Florida man paid 10,000 BTC for two pizzas.)
Many new cryptocurrencies had zero utility. But the possibility for developers to build new tokens, with their own blockchain network, led Jackson Palmer and Billy Markus to make fun of the trend with Dogecoin.
Against the odds, Dogecoin became an instant fan favourite.
Dogecoin started off as a currency for tipping on Reddit. But then, a group of Dogecoin supporters raised more than $30,000 in 2014 to help send the Jamaican bobsleigh team to the Winter Olympics in Sochi. The official Dogecoin Foundation has continued to promote charitable endeavours, turning DOGE into an acronym for Do Only Good Everyday.
The CEO of Tesla and SpaceX, Elon Musk, became interested in Dogecoin in 2020 and began writing Tweets in support of the decentralised meme-coin. Musk's appearance on Saturday Night Live in early May 2021 triggered a huge price rally that took Dogecoin to $0.7376 – the DOGE all-time high.
The news grabbed headlines around the world. Even more news media became interested when Glauber Contessoto (aka SlumDOGE Millionaire) revealed in April of 2021 he'd become the first Dogecoin millionaire after investing his life savings – $250,000 – in DOGE back in February.
Dogecoin was the first meme-coin – but it was far from the last.
Shiba Inu is the next most famous meme-coin and currently sits at 14th place in the cryptocurrency market cap rankings. There's also ApeCoin, which loosely references the popular BAYC NFT collection, as well as Baby Doge Coin, Dogelon Mars, Pitbull, MonaCoin, Samoyedcoin, and hundreds more.
But success is not a given for meme-coins – and in many occasions, they are either flash-in-the-pan hypes or outright scams.
One of the newest cryptocurrencies to take the market by storm is EverGrow Coin. The EGC token has become hugely popular as one of the newest cryptos that's most likely to explode in 2022.
While the meme-coin market is saturated, EverGrow Coin is leading a new breed of reflection tokens. EverGrow Coin charges a 14% transaction tax and its investors are rewarded with 8% of that, every day, in the BUSD stablecoin.
The popularity of the token – and the $37 million paid out in BUSD stablecoin rewards since launching in late 2021 – are making many analysts believe that 2022 is the year where a reflection token will become the next top 20 cryptocurrency.
Dogecoin dipped under the radar before Elon Musk brought it back into the spotlight in 2020.
Since then, many of Dogecoin's original developers returned to improve the Dogecoin code and support the global adoption of DOGE. Key to Dogecoin's success is that anyone can mine DOGE without requiring complex equipment.
Decentralisation also has seen hundreds of Dogecoin-supporting projects spring up around the world. The Dogecoin Foundation aims to bring Dogecoin closer to the 1.7 billion unbanked people in the world, through projects like Gigawallet and RadioDoge.
Dogecoin will also remain the first meme-coin in cryptocurrency.
Every new meme-coin project will have to do something increasingly extraordinary to take DOGE's spot – and no one has flipped its market cap to date.
Dogecoin has a huge community with almost 5 million Dogecoin wallets across the world. Dogecoin is the go-to meme-coin for any interested cryptocurrency investor and – crucially – is readily available to buy on most leading exchanges and platforms.
The backing from Elon Musk and investor Mark Cuban have bolstered the Dogecoin community, and will continue to do until the end of 2022 and beyond.
Unlike Shiba Inu and Baby Doge Coin, Dogecoin has its own blockchain network.
Transactions on the Dogecoin network are low-cost and far lower than the cost of sending Bitcoin or Ethereum. The blockchain platform is decentralised and protects the uncensored, cryptographic, globally transferable and scalable features that made crypto a success.
Furthermore, Dogecoin code continues to be updated by software engineers who are also invested in the network by mining or running DOGE-related projects. Even if the Dogecoin Foundation and other central parties lose interest in Dogecoin, that won't stop others from stepping in to take up the torch.
Dogecoin is one of the most widely accepted cryptocurrencies by merchants.
Dogecoin is accepted by the BitPay payment service provider, which powers more than big-name 250 companies and stores and thousands more small to medium-sized eCommerce and shopfront businesses.
You can use Dogecoin in shops and marketplaces, to buy Internet services, crypto services, business services, web development services, in gaming, for tourism, traveling and renting as well as to buy from big-name fashion outlets from Gucci and even buy Porsches and real estate from certain US-based companies.
Elon Musk recently announced his Boring Company will accept Dogecoin as payment for rides on its Las Vegas transit system, Loop.
Despite the low Dogecoin prices in July 2022, the largest wallets are continuing to buy up DOGE and add to their totals.
Blockchain auditor @WhaleStats reported a huge uptick in Dogecoin accumulation in the first two weeks of July. In particular, Dogecoin was among the top 10 buys for BSC (Binance Smart Chain) whales – one BSC whale alone bought more than 18 million DOGE in July ($1.25 million).
While whales control a large amount of the Dogecoin supple, tracking their movements is key to predicting how DOGE will fair in 2022. At present in July 2022, things are looking positive.
Dogecoin has an unlimited coin supply, with around 5 billion DOGE entering circulation each year (4% of current supply).
There is nothing in the Dogecoin code to stop inflation. This can have the effect of driving the Dogecoin price down unless accumulation continues at rates faster than inflation. This is completely different to cryptocurrencies like Bitcoin, which have a fixed supply.
Dogecoin has zero utility. If big names like Elon Musk, Mark Cuban or the Dogecoin Foundation were to pull out of DOGE this could drastically affect the price.
Dogecoin has already seen its develop teams abandon the project – and even the Dogecoin co-founder Jackson Palmer has made public statements with that crypto was 'over', calling it a 'ponzi' scheme designed to make money from uninformed investors.
If prices fall, developers could leave the project in swathes. This would dent further market adoption and create a vicious cycle.
As high as the Dogecoin highs have, so has DOGE regularly plummeted to lows.
Dogecoin is currently 92% down from the all-time high of $0.7376 last year. Meanwhile, Bitcoin is down 70% from the all-time high, and Ethereum is down 78%.
The top 20 individuals whales (i.e. not including exchange wallets) control more than 10% of the total Dogecoin supply. While there are only 60 wallets with more than $10 million worth of Dogecoin, there are 2.5 million wallets holding between $1 to $100 worth of DOGE.
With so much Dogecoin held in just a few hands, the chances of whales pumping and dumping is likely.
Inflation was a problem tackled by Bitcoin, with its fixed supply at 21 million, back in 2009.
But many newer cryptocurrencies go even further than having a fixed supply to become hyper-deflationary. These tokens actually have a decreasing supply, which tends to increase prices in the short and long term.
EverGrow Coin, with 53% of its initial supply already burned, is a great example.
The EverGrow Coin 14% transaction tax sees 2% set aside for strategic buyback and burn. When prices are low, the EverGrow Coin core development team use the buyback & burn fund to destroy EGC tokens, by sending them to a dead wallet.
EverGrow Coin is committed to being one the most transparent token in crypto – you can view the burn wallet on BSC Scan.
The core development team in EverGrow Coin also regularly publish their wallets, to prove they are not selling anything. Instead, they earn salaries from BUSD rewards like every other investor. The 14% transaction tax also discourages selling because a significant proportion is inevitably redistributed among all existing investors.
EverGrow Coin also has a whale tax which limits the order size to discourage any pump and dump activity.
Dogecoin is trading at a price range between $0.06 and $0.072 in July 2022.
Dogecoin prices are 65% down from the beginning of 2022, when DOGE had a value of $0.17. While prices are low currently, the lowest price of the year was $0.049 on June 18th.
The macroeconomic environment is volatile with CPI data at record highs, and the chance of the US economy going into a technical recession when Q2 GDP data is revealed. Interest rates are also expected to continue rising to battle inflation – each of these can suppress crypto prices in the short term.
That said, this summer is likely to see the bottom of the crypto market and the return to rising prices. So if you want to buy Dogecoin in 2022, July is likely the best month of the year to buy DOGE.
But the problems of inflation, pump & dump and popularity mean no one should go all in without significant risk to their portfolio.
A much wiser choice is to diversify investments, with Dogecoin, other major cryptocurrencies as well as small-market cap cryptocurrencies most likely to explode in 2022.
In the latter case, EverGrow Coin with a market cap of just $60 million – and built-in mechanisms which resolve many of Dogecoin's problems already in place – is a great asset to any cryptocurrency investor's portfolio.
*NOTE: The views expressed in this article are not financial advice. Always do your own research and never invest funds you need to cover vital living expenses.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
