#234: Mega Meme Like No Other
In this email:
What exactly is Dogecoin?
What are the fundamentals?
Correlations: New presidency, Dogecoin, Bitcoin, Nasdaq…?
What exactly is Dogecoin?
Currently at a $61bn market cap (#7 coin at time of writing), Dogecoin is one of the first "meme coins" (and perhaps the first "dog coin")
Origin: Dogecoin was created in 2013 as a lighthearted parody of the crypto craze, using the popular "Doge" Shiba Inu meme as its mascot.
Community-Driven: The meme coin has often been used for tipping content creators online and funding charitable causes (i.e. sending the Jamaican bobsled team to the Olympics).
Volatility: Unlike other traditional financial instruments, Dogecoin has seen extreme price fluctuations, often influenced by social media trends and endorsements from public figures like Elon Musk.
What are the fundamentals?
A chart like no other, and it’s hard to find more assets with this little logic…
Nonetheless, some fundamental facts (but usually aren’t the reasons for the coin’s rallies):
Unlimited Supply: Unlike Bitcoin, which has a capped supply, Dogecoin has an infinite supply, with over 5 billion coins added annually. This makes it more inflationary and less likely to serve as a store of value.
Low Transaction Costs: Dogecoin's blockchain offers faster transaction speeds and lower fees compared to other cryptocurrencies, making it practical for small-scale transactions.
Lack of Institutional Backing: Dogecoin's value is primarily driven by community sentiment and speculative interest, with minimal adoption in institutional finance, which can be an attractive feature to some and the opposite to others.
Correlations: Dogecoin, New presidency, Bitcoin…?
Correlating Dogecoin with other assets is a huge point of contention and dangerous speculation.
With that said, here is what others are saying:
Further news / updates regarding the Department of Government Efficiency (recently proposed after Trump’s victory) — the DOGE acronym is an “obvious nod to the coin” (per Fortune)
Long time trader Peter Brandt has recently said:
"DOGE is in the part of the life cycle where BTC was in May 2016. Notably, Brandt confirmed that a similar chart in the spring of 2016 is what first made him a major Bitcoin investor. While there are many DOGE whales, it remains unclear whether Peter Brandt holds or plans to buy Dogecoin at this point."
Of course, this is all high speculation and should be taken with caution — while it's an interesting (and exciting to many) perspective, investing based on such correlations can be highly risky!
TOGETHER WITH: SpeakBits (Sponsored)
“SpeakBits is a social platform designed to amplify your voice, spark engaging conversations, and foster a vibrant community where every user's opinion truly matters.”
✨ Speak your mind, connect with the world!
Ask a Wise Ape is a reader-supported newsletter. Since you're here already, consider signing up for a paid subscription for $5/month which will give you access to the full archive (posts are archived after three months). Thank you for your contribution!
It’s a crazy world - we Apes will keep you informed.