Understanding the past and present of DOGE in one article: The strongest meme in history is reborn

DOGE originated from a spoof and rose to prominence because of Musk. Now, its narrative will undergo a major change because of Musk, Twitter, and Binance CEO Zhao Changpeng. In the past, memes were considered to have no practicality, but BTC also became a meme. What will happen when the strongest meme is given possible practicality?

1. Previous life

In 2021, BTC rose from 10,000 to 60,000, causing a frenzy, but DOGE's returns were much better. Some people, such as Bao Erye, captured Musk's intervention and exchanged BTC for DOGE at the beginning of the bull market, making a lot of money. Currently, DOGE is listed on all major exchanges and ranks among the top three in daily trading volume.

Note: Some of the content is translated from Galaxy_Digital_Research 2021 research report, and the original English text is at the end of the article.

Dogecoin was originally created by two Adobe engineers at the end of 2013. Its code was directly derived from LTC (and LTC is just a minor modification of the BTC code). Users can get DOGE by the way when mining LTC. At first, DOGE was even just a spoof, but a month after its launch, someone on the big forum Reddit created a reward robot, which allowed people to reward high-quality posts with DOGE, and it received more and more attention.

The growing attention made the founder who only wanted to make fun of it extremely dissatisfied. Founder Marcus said, "I felt very uncomfortable when I saw someone invest $20,000 to buy this coin." With the departure of the founder, DOGE's core code base has been ignored and has no special use. Its price has also begun to remain silent after the bear market. Until the man who wants to land on Mars appeared.

2. This Life

In April 2019, Dogecoin’s official Twitter account was looking for a CEO to lead them, and Musk showed up. He said: Dogecoin is my favorite, it’s so cool. In the following time, Musk began to continue to promote DOGE. This “big V” who is the most influential on Twitter (and now the absolute king) released a lot of information about DOGE, and the market rose every time he posted. Just like that, the dog soared to the sky.

Musk is bullish on DOGE. Someone summarized a graph, which shows that it is almost bullish once, then it goes up, then it goes down, then it continues to bullish, and repeats. Until the bear market comes, it keeps washing the market to 0.05, and then Musk bullishes again. This time, because the content of the bullish is different, it is not empty bullish, but has solid content, which forms a linkage with Twitter. Therefore, in the second year, the bullish price is still strong after the first rise. Let's look at the data below.

The total amount of Dogecoin is unlimited, and the current price is 0.137 (historical high 0.7), ranking 8th in market value, with a total market value of 18.9 billion US dollars, which is 1/10 of ETH. Currently, the number of network addresses is as high as 4.45 million, and it increased by 100,000 in October - these new users are chasing new hot spots. Observing the giant whale wallet, we can see that the top 100 holders have all shipped: people without money are all in for their ideals, and rich people always do whatever they want.

In the distribution of DOGE holding addresses, the address ranked first accounts for 28.31%. I guess it should be Musk's? If anyone knows, please give me some advice in the comments section. This distribution relatively shows that after a long period of washing and turnover, the degree of decentralization is better (if you don't mention the address ranked first).

Figure 2 shows the ETH rich list, but ETH will eventually turn to deflation, while Dogecoin is still inflationary, with a higher inflation rate than BTC and ETH.

“If you can’t explain a project in three sentences, then it’s not worth investing in.” As an optimist, I would like to write three sentences about the future of DOGE:

① Twitter delisted and became privately owned by Musk, who is the "CEO" of DOGE. Twitter and Musk cannot issue coins, and no one knows whether DOGE has a chance to rise to the top. It's just a matter of how much to bet. In addition, will old Twitter investors pay attention to DOGE? Risk: A new "Twitter coin" will be issued...

② Musk's Tesla is worth 713.8 billion, SPACE X is worth 125 billion, the acquired Twitter is worth 44 billion (competitor Facebook is worth 252.4 billion), and the market value of Dogecoin is 18.2 billion. Can Twitter's valuation rise? Can DOGE be bound to push the market value to exceed 100 billion? Compared with currencies such as BNB and ETH, the future of DOGE is much more vague, with greater volatility, risk, and returns. It is more inclined to participate in a small position.

③ The value of emotions and communication is also value. The world's top spokesperson, the most extensive communication power, the oldest currency, plus the most brainless newbies in the next bull market, then, the emotion of chasing the rise plus the wide communication, this bubble has reason to participate. So, how much will you be willing to enter the market if the price drops?