Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward

By Andy HechtCryptocurrencyMay 12, 2022 05:10AM ET
www.investing.com/analysis/dogecoin-a-toptier-crypto-that-holds-possible-attractive-percentage-reward-200623913
Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward
By Andy Hecht   |  May 12, 2022 05:10AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

This article was written exclusively for Investing.com

  • Elon Musk’s pet crypto
  • 11th leading asset in its class
  • Cryptos move higher, lower on sentiment
  • Low nominal prices attract speculators
  • If Bitcoin and Ethereum take off, DOGE could become more attractive

Cryptocurrency, fiat currency, and gold and silver have one thing in common. The intrinsic value depends on the market’s consensus on value. Cryptos and fiat currencies’ values rely solely on faith. While gold and silver have industrial and ornamental applications, investment demand, or faith in their value, is the primary determinate of the path of least resistance of prices.

Gold is the metal that governments, central banks, and monetary authorities hold as an integral part of their foreign exchange reserves, validating gold’s role in the worldwide financial system. Silver is far more volatile in comparison, but the price tends to follow its precious-metal cousin higher and lower. Silver’s lower cost and higher volatility attract far more speculative interest when the price is trending higher or lower.

In the world of cryptocurrencies, if Bitcoin and Ethereum are analogous to gold, then Dogecoin is their silver. Each DOGE unit is a fraction of the price of Bitcoin and Ethereum and has developed a history of wide price variance that could make it the speculative crypto of choice for market participants looking to hop on board during a rally.

Elon Musk’s Pet Crypto

Elon Musk’s empire is like the universe—it is expanding. Aside from Tesla (NASDAQ:TSLA), the world’s leading electric-vehicle maker, he is the founder, CEO and chief engineer at SpaceX. His portfolio also includes The Boring Company, which addresses traffic and logistical issues in cities by constructing tunnels. He co-founded Neuralink in 2016, a company that creates devices to embed in the human brain, facilitating merging with machine technology. Musk explains the product as “a Fitbit in your skull.”

Musk made millions from interests in Zip2 and PayPal (NASDAQ:PYPL). Tesla’s growth made him billions and vaulted him to become the world’s wealthiest person. In April, he offered $44 billion for Twitter (NYSE:TWTR), the social media platform. He plans to take the company private, expanding his empire.

Musk is a modern-day Leonardo da Vinci or Thomas Edison, with an expanding portfolio of diversified businesses. He is also a cryptophile, holding a portfolio of cryptocurrencies. Over the past years, he developed a particular affinity for Dogecoin, the crypto that began as a joke and grew into a top-tier digital currency. Musk is so enamored with DOGE that he owns a Shiba Inu puppy named Floki. The Shiba Inu is DOGE’s mascot and brand. Each time Musk tweets about DOGE, the cryptocurrency’s price volatility tends to soar.

11th Leading Asset In Its Class

On May 10, DOGE was the 11th leading cryptocurrency out of more than 12,390.

Top Cryptos By Market Cap.
Top Cryptos By Market Cap.

Source: CoinMarketCap

The chart shows that at 11.09 cents per token, DOGE’s market cap stands at more than $14.78 billion. DOGE’s position affords the crypto the liquidity and critical mass that is no joke.

Cryptos Move Higher, Lower On Sentiment

Cryptocurrencies are alternative means of exchange. Devotees like Musk, Jack Dorsey, and others believe cryptos will compete with fiat currencies over the coming years. While central banks and governments can issue fiat legal tender to their heart’s content, crypto values are untouched by government interference. Their values are solely determined by bids to buy and offers to sell in the market.

Since sentiment determines price levels and, with over 12,300 cryptos to choose from, branding and positioning in the market are critical success factors. Musk’s adoption of DOGE as his pet crypto and its Shibu Inu mascot has created a tremendous following.

DOGE/USD Chart.
DOGE/USD Chart.

Source: CoinMarketCap

The chart shows that DOGE was mainly at a fraction of one penny from 2013 through early 2021. Musk’s interest pushed the price to a high of nearly 70 cents per token in May 2021. At the 11.09 cents level on May 10, DOGE corrected lower with the rest of the asset class. However, the crypto remains at multiples of its pre-2021 price level.

Low Nominal Prices Attract Speculators

Bitcoin’s rise from 5 cents in 2010 to nearly the $69,000 level in November 2021, and its current price level at more than $30,000 per token, created a speculative frenzy in the cryptocurrency asset class.

At the 11 cents per token level, investors and speculators have flocked to DOGE as it moved higher and lower with the other asset class members. A low per-token-price creates a magnetic psychological attraction for investors and speculators dreaming of Bitcoin-like returns. The Shiba Inu brand and Musk’s participation increase the crypto’s appeal.

Bitcoin, at around $31,000 per token, and Ethereum, at the $2,340 level, are expensive. A speculator can buy about 282,000 DOGE for the price of one Bitcoin or more than 21,200 DOGE for one Ethereum token.

If Bitcoin, Ethereum Take Off, DOGE Could Offer Attractive Percentage Reward

High interest rates, a rising US dollar and volatility in markets across all asset classes have weighed on cryptocurrency prices since November 2021. Bitcoin and Ethereum are the market leaders, with approximately 61% of the asset class’s market cap, and the leaders tend to dictate the path of least resistance of all crypto prices.

Bitcoin and Ethereum are searching for bottoms. If the price action over the past years repeats, other substantial rallies could be on the horizon in the coming weeks, months, and years. When they take off on the upside, DOGE is likely to follow like an obedient Shiba Inu puppy, with Musk cheering his favorite crypto via his new toy, the world’s leading social media platform.

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward
 

Related Articles

Crypto Briefing
Cardano Primed For Volatility After Steep Correction By Crypto Briefing - May 20, 2022

Cardano is attempting to recover after incurring significant losses over the past week.Key TakeawaysCardano has consolidated within a narrow price pocket after a brutal 45%...

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (13)
Ameer Scott
Ameer Scott May 13, 2022 10:18AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Need to do more research on this
Justin Horishnyk
Justin Horishnyk May 13, 2022 9:34AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
If you don't own it you don't own it in these times. Many people will be finding this out the hard way coming up with the end of our business cycle coming up.
Dwain Hobbs
Dwain Hobbs May 12, 2022 8:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
30% drop since article published ,, couldn’t tell if the article was about Doge or E Musk
Justin Horishnyk
Justin Horishnyk May 12, 2022 8:02PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I definitely wouldn't listen to his advice in general 🤣
Larry DeAngelis
Larry DeAngelis May 12, 2022 1:15PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Next stop zero! top tier right
William Lindsey
William Lindsey May 12, 2022 12:33PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I PooPoo then it is followed by PeePee.
Santiago moreno
Santiago moreno May 12, 2022 12:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
12300 crytos to choose from… that says it all. Even 100 is too many to invest (save the very few ppl have made to soar and dream). Pure gambling
Nicholas Cole
Nicholas Cole May 12, 2022 12:31PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I remember when UST was at 90 cents
Raul Vicen
Raul Vicen May 12, 2022 12:26PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
What about the money taken by somebody from the TERRA/LUNA ecosystem? This includes their stable coin UST … what a bad-speaking story for CRYPTO!!!
Chart Harmonics
Chart Harmonics May 12, 2022 12:05PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
11th best? Why not 12th? And writing this amid a complete collapse of crypto?
Charlie Surace
Charlie Surace May 12, 2022 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Still trying to justify crypto-mania
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email