Although it is a dog themed cryptocurrency, Doggie Coin (DOGE) is one of the leading counterfeit currencies in the cryptocurrency market. Although only humorous counterfeit currency has the risk of portfolio diversification, there are many reasons to believe in the prosperity of dog coin. This article will answer for you.

1、 What is Doggie Coin (DOGE)?

At present, Doggie Coin (DOGE) is the only counterfeit coin with the first generation blockchain, and has successfully ranked among the top 10 cryptocurrencies by market value. Bitcoin cash (BCH) Although LTC is considered to be a more important counterfeit currency, in the token, the unchangeable token (NFT) and decentralized finance (DeFi) are formally put aside in the process of growth.

However, the dog coin that can survive the bear market in 2022 is different.

2、 Two main reasons why dog coins will shine

1. Elon Musk factors and market sentiment

The strongest reason to be on the list is undoubtedly billionaire Elon Musk. Musk is one of the main responsible persons for the rise of dog coin in 2021. For example, last year she tweeted a picture of a dog stepping on the ground, a picture of the cover of Vogue magazine. This tweet alone increased the value of dog coin by 10 times in 24 hours. This year, more and more posts about dog themed counterfeit coins have led to a bull market, and even some "dog coin killers" have appeared.

The CEO of Tesla also said that, compared with Bitcoin (BTC), he likes dog coin very much. According to the CEO of SpaceX and Twitter, the counterfeit currency exceeds the largest cryptocurrency because its proportion is higher and BTC transactions are larger. All this enthusiasm for dog themed cryptocurrency has led crypto enthusiasts to speculate that DOGE can use it on Twitter in some way. After all, Musk bought the platform in the last quarter of this year.

Although Mask's Twitter has led to the rapid growth of counterfeit coins, it is the DOGE used on Twitter as a currency, which may cause new strong growth.

Based on the data of the blockchain analysis platform Santiment, the number of dogcoin now lags far behind the number of counterfeit coins searched by Google in May 2021. At that time, the dog coin climbed to a new historical high (ATH) and attracted everyone's attention.

In addition, cryptocurrency dominated 40% of social networks at that time. However, at present, the dominant rate of counterfeit currency on social networks has dropped to 14%.

As Santiment pointed out, although these figures look bad, tokens may be in the accumulation (integration) stage and are considered to be on the downward trend.

2. Functional blockchain

Shortly after Ethereum (ETH) transited from workload certificate through PoW to proof of equity (PoS), Doggie Coin became the consensus model for adopting the second largest cryptocurrency in PoW.

In addition to the Miner Foundation, some investors who support ETH mining equipment have turned to counterfeit currency. This has given DOGE over the years, and higher security has proven that it has a working network that can continuously trade.

Of course, this places great emphasis on providing fast transfer and low transaction costs. Because of its operation mode, Bitcoin has become digital gold. This means that dogcoin can become a cryptocurrency and be selected as a decentralized currency in daily life.

summary

What is the above about Doggie Coin (DOGE)? What are the advantages of dog coin? The answer to these two questions. The rise of DOGE price also involves many speculative activities, including Cardano (ADA) and Polygon (MATIC) waiting for the counterfeit currency to take the lead. In addition, it is true that the dominant position of the cryptocurrency market is huge before we believe that the dog themed counterfeit currency can reach $1. It should be noted that proportion is necessary. Dog coin is designed to supplement micro trading. This is the reason for the inflation of dogcoin network, which creates 10000 DOGE every minute. At present, Dog Coin is the only counterfeit coin with the first generation blockchain, and has successfully ranked among the top ten cryptocurrencies.