WhatsApp Dogecoin has seen more than 1000% gain in the past while surpassing the market valuation of various Altcoins.DOGE has seen an advent increase in large transactions.It went up from 16 Billion Doge transacting per day to 127 Billion in a day.
Dogecoin has not remained untouched from anyone who is even remotely connected with the cryptocurrency.It has seen an unexpected boom in the past four months and given its investor an amazing return.The rise of Dogecoin has also welcomed various doubts like ,Few people run full nodes, and those who do often have difficulty downloading the chain or staying synced with the network.Some of these might be true or false, but the big question is DOGE a viable asset for a long term perspective.How Did DOGE Barked On The Moon? Source: Into the Block
Dogecoin is a codebase fork of Luckycoin, which was a fork of Junkcoin, which was a codebase fork of Litecoin, which in turn is a hard fork of Bitcoin.DOGE was originally launched using the Scrypt hash function for its proof-of-work algorithm, before forking to become merge-mined with Litecoin in late 2014.
DOGE price surged after a long period after the entry of ELON MUSK on April 2,2019.The price has not stopped since and continued to rise up and up.
DOGE coin has seen an exponential increase in the user base from the last year.
There are about 3.65 million addresses which are currently holding Dogecoin.The transaction volume of the asset has also seen a rise of 8X in the last four months.
This tells that major investors with the retailers are using the DOGE block chain.The analyst predicts that there will be more and more use of the DOGE in the future.It can lead the price to new heights.One can see in the future that DOGE will be sitting on the moon with the other cryptocurrencies.Why Is Dogecoin A “Bubble Of Steel” Which Can Never Be Busted? Source: Trading view
Doge is deficient to Bitcoin in various ways like network immaturity, ownership concentration, higher inflation rate and many more.This things can be solved as the technology progress, but what makes DOGE invulnerable is its network effect.
Network effect is defined as the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products.For Example one can see that there only 4 to 5 credit card companies or there are very less competitors of Amazon and Ebay all over the globe.
This is due to the network effect of the services.Similarly the rise of DOGE has increased its network to all over the globe.As the crypto adoption will increase in the future it will be impossible to keep it out from the general population.This can push the price beyond $1.
Conclusion
Dogecoin has seen a very adoption rate in the past which has pushed the price to the moon.Unlike the banks and financial institution DOGE works to create a sustainable platform for the users.DOGE may not rise to the $100 because then it would have to surpass half the GDP of USA.But saying that it will not even reach $10 or $20 is like saying “ People will start trading Goats instead of Asset” which is not true.So if Dogecoin is a bubble then it has the strongest surface tension known to the mankind..