What are the driving forces behind Dogecoin meteoric rise?
Created in 2013 as a joke, Dogecoin (DOGE) is an altcoin cryptocurrency, which uses the face of a Japanese hunting dog Shiba Inu for its name and logo.
Unlike bitcoin, which gained mainstream acceptance and support by financial institutions as a long-term investment, storage of value, and medium of exchange, Dogecoin until recently was mostly used for tipping content creators on social media, or service providers like restaurant waiters.
Analysts and journalists are struggling to explain why Dogecoin is up 7,700% year-to-date with the market capitalization of $47 billion - ranking #6 between Tether and Cardano by total value of coins in circulation.
Technical charting or fundamental analysis do not fully explain the market action and should not be used exclusively for predicting the future price moves. Investor psychology and socio-economic changes are the driving force behind the Dogecoin phenomenon.
The Dogecoin army of traders, investors, coders, influencers, and enthusiasts are brought together by shared goals and values: taking financial power back from the greedy Wall Street, rooting for the underdog, anti-establishment ideology, and providing fair opportunities for success for the average guy or gal. There is also a fun factor - not all participants are in it just for the money.
A large proportion of Dogecoin order flow comes from Robin Hood and Webull exchanges, which provide access to the financial markets for beginner investors, including many millennials and others, disillusioned by the current politico-economic environment.
David vs. Goliath, or Robin Hood vs. Goldman Sachs mentality, anti-establishment ideology, crowd factor and positive momentum explain the continued rally in Dogecoin more accurately, than fundamental analysis, or technical market indicators at this point.
Unlike bitcoin, which gained mainstream acceptance and support by financial institutions as a long-term investment, storage of value, and medium of exchange, Dogecoin until recently was mostly used for tipping content creators on social media, or service providers like restaurant waiters.
Analysts and journalists are struggling to explain why Dogecoin is up 7,700% year-to-date with the market capitalization of $47 billion - ranking #6 between Tether and Cardano by total value of coins in circulation.
Technical charting or fundamental analysis do not fully explain the market action and should not be used exclusively for predicting the future price moves. Investor psychology and socio-economic changes are the driving force behind the Dogecoin phenomenon.
The Dogecoin army of traders, investors, coders, influencers, and enthusiasts are brought together by shared goals and values: taking financial power back from the greedy Wall Street, rooting for the underdog, anti-establishment ideology, and providing fair opportunities for success for the average guy or gal. There is also a fun factor - not all participants are in it just for the money.
A large proportion of Dogecoin order flow comes from Robin Hood and Webull exchanges, which provide access to the financial markets for beginner investors, including many millennials and others, disillusioned by the current politico-economic environment.
David vs. Goliath, or Robin Hood vs. Goldman Sachs mentality, anti-establishment ideology, crowd factor and positive momentum explain the continued rally in Dogecoin more accurately, than fundamental analysis, or technical market indicators at this point.