Although it is an emoticon coin, DOGE is one of the most famous counterfeit coins in the crypto market. Although there is a risk of dispersing a person's investment portfolio on a counterfeit coin based solely on humor, we have reason to believe in the prosperity of dog coins
Although it is an emoticon coin, DOGE is one of the most famous counterfeit coins in the crypto market. Although there is a risk of dispersing a person's investment portfolio on a counterfeit coin based solely on humor, we have reason to believe in the prosperity of dog coins.
Gougou Coin is the only counterfeit coin with the first generation blockchain that has successfully entered the top 10. Although Bitcoin Cash (BCH) and Litecoin (LTC) are regarded as more important counterfeit currencies, they have increased in token, non fungible assets (NFT) and decentralized finance (DeFi).
However, this is not the case with dog coins, even in the bear market of 2022, they still exist. Therefore, we will emphasize three reasons to make you believe that DOGE may rise.
Elon Musk
This is certainly the strongest reason on our list. This billionaire is one of the main leaders of Dogecoin's rise in 2021. For example, on January 28th last year, he posted a picture of a dog stepping on the cover of Vogue magazine on Twitter - or "Dogue," as he wrote.
This tweet alone has led to a tenfold increase in dog coins within 24 hours. This year has passed, and there are more and more posts about meme counterfeit coins, leading to a bull market and even some "dog coin killers".
Compared to Bitcoin (BTC), Tesla's CEO also expressed appreciation for Dogcoin. According to this businessman, counterfeit currency surpasses major cryptocurrencies because its transaction volume is larger than BTC.
All this enthusiasm for memealtcoin has led encryption enthusiasts to speculate that DOGE may be used in some way on Twitter. After all, Musk purchased the platform in the last quarter of 2022.
If Musk's suggestive tweets alone make counterfeit coins soar, then the entry of cryptocurrency into Twitter may be a gamble for its next prosperity.
Market sentiment
According to the blockchain analysis platform Santiment, the Google search volume of DOGE in May 2021 was far behind that of counterfeit coins. At that time, the dog coin hit a new historical high.
In addition, the cryptocurrency had a social dominance rate of 40% on the aforementioned dates. However, in the last quarter of 2022, this proportion decreased to 14%.
As Santiment pointed out, although these numbers may look bad, they indicate that cryptocurrencies may be in an overweight phase and are heading towards a bearish reversal.
Functional blockchain
Shortly after moving from ETH to Merge, Doggie Coin established itself as the second largest cryptocurrency with the proof-of-work consensus model. In addition to already having a mining foundation, some investors who have mining machines that support ETH have also migrated to Memealtcoin.
This has brought higher security to DOE, which has proven over the years that it has a network capable of handling uninterrupted transactions. Of course, this occurs when there is a strong emphasis on providing fast transfer and low fees.
Bitcoin has become digital gold due to its operational model, while Dogcoin may have been chosen as a decentralized currency for daily life.
Despite all of these benefits, it should be pointed out that the price increase of DOGE also involves many speculative activities, even though it leads in capitalization compared to counterfeit currencies such as Cardano (ADA) and Polygon (MATIC).
In addition, before you believe that the price of meme counterfeit coins can reach $1, please remember that the crypto market situation needs to undergo significant changes to achieve this. DOGE aims to complete micro transactions. Therefore, its inflation model aims to maintain low value through dilution, creating 10000 cryptocurrency units per minute.
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