The altcoin had just hit the $1 billion milestone at Christmas
Inspired by a popular meme, Dogecoin was created back in the early days of the cryptocurrency craze. Launched in December 2013 as somewhat of a joke, the meme-inspired coin was dubbed “the internet currency” and designed to promote a sense of community and generosity rather than simply looking to make money. Last weekend, however the altcoin had surged in value and now has a market capitalization over $2 billion.
Altcoins are peer-to-peer digital tokens that descended from bitcoin. Notable altcoins include steem, ethereum, starts, ark and litecoin with ethereum’s price rising rapidly and hitting $1,157 and ripple, which saw a staggering 35,000% jump in its value last year. at the time of press.
Dogecoin had been gaining steadily all through December, surging to the $1 billion milestone for the first time on Christmas Day , but the latest spike has prompted howls of “crypto-hype” from sceptics.
As for its price, the coin was trading at $0.018 at the time of writing. That’s up 800% from $0.002 a coin at the beginning of December.
Founder Jackson Palmer, who created the digital currency as a joke, said, “I have a lot of faith in the Dogecoin Core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over 2 years has a $1B+ market cap.”
The total value of cryptocurrencies is over $750 billion, according to CoinMarketCap, and bitcoin dominates nearly 40% of that market and Wall Street has been raising red-flags about a bubble in the market.
The rise of Dogecoin and other bitcoin descendants is due to the fact that they’re perceived as being “cheap” compared to bitcoin or ether, according to Dave Chapman from Octagon Strategy.