With Social Media’s Heavy Influence, is Now the Time to Buy Dogecoin?

With Social Media’s Heavy Influence, is Now the Time to Buy Dogecoin?

By its very nature, cryptocurrency in general is exceptionally volatile. It’s just that whichever crypto coin is generating the most headlines at the time tends to experience the biggest (and fastest) shifts of all.

Dogecoin – the meme-inspired crypto coin nobody took seriously at first – has been dominating the cryptocurrency press for some time now. Having recently hit its all-time record-high of $0.7376 on 8 May, dogecoin suddenly became the coin of the moment for the masses.

Hardly surprising, given the fact that it had gained a whopping 15,000% since the beginning of 2021.

Since then, the value of dogecoin has once again slipped to around 41 cents as of May 19. Still pretty good, considering it was hovering around the $0.001 level in early 2019.

Buying and trading dogecoin with platforms like Evonax has never been easier, and that’s exactly what many are setting their sights on right now. But when it comes to predicting the future of this meme-inspired coin, it’s almost impossible to know what’s going to happen even from one day to the next.

All cryptocurrencies are volatile, but dogecoin has taken unpredictability and the effect of influencers to an entirely new level.

The Most Volatile Cryptocurrency of the Moment?

It came as no surprise that the early days of dogecoin were not particularly inspiring.  It was officially launched in 2013 to poke fun at bitcoin and purely as a joke. Software engineers Billy Markus from IBM (IBM) and Jackson Palmer from Adobe (ADBE) admitted from day one they had nothing but fun and games in mind, not knowing what was to become of their pet project.

Comparatively quick to mine (or dig) and popular among casual crypto traders spanning several demographics, dogecoin gradually grew in value to become a hot commodity. Then came 2021, when dogecoin achieved the kinds of gains no other crypto coin has come close to rivalling to date.

But what’s particularly interesting is the extent to which dogecoin’s volatility is so closely connected with social media. TikTok and Reddit users have been known to regularly attempt to drive up the price of dogecoin through influencer marketing, while high-profile investors like Elon Musk only need to mention dogecoin in passing to see its value propelled in one direction or the other.

Billionaire entrepreneur Marc Cuban has also thrown his weight behind dogecoin over recent weeks, as have a bunch of other well-known brands like Snickers chocolate and Slim Jim beef jerky.

More recently, Elon Musk successfully boosted the value of dogecoin significantly by talking it up ahead of his appearance as guest host of Saturday Night Live. However, the way he talked about it during the show prompted a mass sell-off among dogecoin investors worldwide, ultimately resulting in a whopping 40% reduction in its value.

Dogecoin was trading at around 70 cents on the Saturday of the show, hovered around 66 cents as SNL went on the air and subsequently fell to 44 cents by Sunday morning. Something that clearly illustrates just how volatile dogecoin is, and how susceptible this particular coin is to positive or negative PR.

All Bark and No Bite?

While the above appears to paint a predominant picture of doom and gloom, it’s actually quite the contrary. As with all forms of cryptocurrency, dogecoin’s extraordinary volatility works in both ways.

It’s therefore simply a case of making the right moves at the right time, in order to generate profits.

Think of it this way – the value of dogecoin when it first became available in December 2013wasjust $0.000264. There was little to no movement for the first four years, after which dogecoin hit a new high of $0.013219 in January 2018. After which, it once again fell to $0.002169, and in early 2019, it plummeted to the $0.001 level.

Even as recently as late 2020, dogecoin was trading at as little as $0.004644.  This was followed by a major rally in the prices of popular crypto coins during January and February this year, ultimately seeing dogecoin reach a new high of $0.079696.

Fast forward a few months and dogecoin was trading at a comparatively huge $0.7376 on May 8, at which point it had surpassed XRP, USDT and DOT to become the fifth-largest coin on the market with a capitalization of $64bn.

Suffice to say, those who had invested in a stockpile of dogecoin when it was worth next to nothing were by this point laughing all the way to the bank.

The post With Social Media’s Heavy Influence, is Now the Time to Buy Dogecoin? appeared first on Cryptoverze.

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