Dogecoin Price Prediction | What is Dogecoin | Dogecoin Elon Musk

Dogecoin Price Prediction

What is Doge Coin

Dogecoin is a cryptocurrency forked from the Litecoin blockchain. DOGE was created in 2013 as a satire of cryptocurrency culture and takes its name from the Shiba Inu dog meme. Today we will also learn about Dogecoin Price Prediction.

The project was founded by Billy Marcus and Jackson Palmer, based on the idea that a comedic coin would attract more mainstream attention than a serious project like bitcoin. Since its creation, the coin has been supported by a large community of fans, including Elon Musk.

Dogecoin Price Prediction
Dogecoin Price Prediction

Dogecoin uses a proof-of-work consensus mechanism that requires dedicated mining equipment to mine new coins. The Dogecoin supply is unlimited in order to minimize hoarding, reward miners, and keep transaction fees manageable .

However, this does mean that the coin is inflationary. Although it started out as a joke, Dogecoin Price Prediction has become increasingly popular among investors among other major cryptocurrencies.

Dogecoin Price Prediction

Dogecoin Price Prediction: Dogecoin has become the most traded cryptocurrency so far this year. However, a large part of this virtual currency is in the hands of only a few people. 82 percent of the entire supply is in the hands of just 535 investors on the blockchain.

The cryptocurrency Dogecoin Price Prediction, which was launched as a meme symbolizing the face of a dog of the Shiba Inu breed in the year 2013, may not stand anywhere in comparison to the value of bitcoin and ether, but it is far ahead in popularity. Dogecoin Price has become the most traded cryptocurrency so far this year.

However, a large part of this virtual currency is in the hands of only a few people. 106 billion DOGE coins i.e. 82 percent of the entire supply is in the hands of only 535 investors on the blockchain. Each of these investors has 10-10 million DOGE coins.

Dogecoin Elon Musk

In the last six months, Tesla CEO Elon Musk (Elon Musk on Dogecoin) and Reddit started focusing on this cryptocurrency, so if you look at the data of these six months, then a very interesting picture appears. Investors who have invested in DOGE in the last six months now own 25 per cent of the total supply of this currency.

Looking at a report by market intelligence firm Chainalysis, ever since Musk and Reddit turned their attention to Dodgecoin, its prices have risen tremendously. In this report Chainalysis says that the level at which investors are buying this token, a trend like this has not been seen since the last months of the year 2017.

New investors in DOGE held 9 percent of the total supply of tokens in July 2020, but in August 2021, new investors held 25 percent of it.

Elon Musk was responding to a CoinDesk story on Twitter, about how Ethereum based DeFi protocol are becoming inaccessible to small investors due to high transaction fees. Musk tweeted a one-word reply under this story, “Dooooge”, referring to his favourite cryptocurrency, the Dogecoin.

Who owns how many shares of dogecoin

Dogecoin has a total of 4 million on-chain holders. However, there are a limited number of investors who hold a large share of this cryptocurrency. Chainalysis says: that out of these 535 investors, most may be businesses and exchanges, such exchanges store DOGE tokens for two traders. The rest may be some wealthy investors.

Of these 535 accounts, which account for 82 per cent of the total supply, there are at least 31 investors who have 37 billion DOGE coins and have invested in these coins for periods ranging from six months to two years.

Among other investors, 2.1 million out of 4 million investors have less than 100 DOGE (ie, every investor out of 2.1 million investors has less than 100 Dogecoin), half of these investors have held more than two years. Have invested in this cryptocurrency.

Dogecoin, Elon Musk Tweet

Tesla head Elon Musk just said “Dooooge” in response to a tweet about higher transaction fees on Ethereum. Due to this, interest in his favorite crypto has increased again. Along with this, there are also indications how it can be used to increase people’s access to Decentralized Finance (DeFi). Musk has given suggestions to crypto investors several times through his Twitter handle. Even before this he has been tweeting about the meme token Dogecoin.

Dogecoin Price Prediction
Dogecoin Price Prediction

DeFi Systems aims to provide an autonomous and decentralized option for financial services controlled by banks. Most DeFi applications are based on the Ethereum blockchain, with high transaction fees due to the cost of each Ether (ETH) token. CoinDesk has made a report about the cost of using DeFi for small investors. In response, Elon Musk tweeted a one-word response, “Dooooge”, alluding to his favorite crypto token, Dogecoin.

The report states that Dogecoin has low transaction fees. It is around $0.65 per transaction. This is a big reason why Musk called Dogecoin “the people’s crypto” in October. However, he also believes that the transaction fees for Dogecoin should be further reduced. With this, it can be used for payment like buying movie tickets. Each transaction on the Ethereum blockchain requires computational resources and therefore a transaction or “gas” fee is charged. Gas prices are in “gwei”, a denomination of Ethereum. Each gwei is equal to 0.000000001 Ether.

Ethereum says the gas fee helps keep the network safe from bad guys who can spread spam. The reason for the high gas fees on the Ethereum blockchain is the popularity of this blockchain network. However, due to the high fees, many people are also facing problems.

Last month, beer company Budweiser launched a collection of non-fungible tokens (NFTs) built on Ethereum. To buy it had to pay a gas fee of $ 75. Many people expressed their displeasure over this.

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