Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward

By Andy HechtCryptocurrencyMay 12, 2022 10:10
Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward
By Andy Hecht   |  May 12, 2022 10:10
Saved. See Saved Items.
This article has already been saved in your Saved Items

This article was written exclusively for

  • Elon Musk’s pet crypto
  • 11th leading asset in its class
  • Cryptos move higher, lower on sentiment
  • Low nominal prices attract speculators
  • If Bitcoin and Ethereum take off, DOGE could become more attractive

Cryptocurrency, fiat currency, and gold and silver have one thing in common. The intrinsic value depends on the market’s consensus on value. Cryptos and fiat currencies’ values rely solely on faith. While gold and silver have industrial and ornamental applications, investment demand, or faith in their value, is the primary determinate of the path of least resistance of prices.

Gold is the metal that governments, central banks, and monetary authorities hold as an integral part of their foreign exchange reserves, validating gold’s role in the worldwide financial system. Silver is far more volatile in comparison, but the price tends to follow its precious-metal cousin higher and lower. Silver’s lower cost and higher volatility attract far more speculative interest when the price is trending higher or lower.

In the world of cryptocurrencies, if Bitcoin and Ethereum are analogous to gold, then Dogecoin is their silver. Each DOGE unit is a fraction of the price of Bitcoin and Ethereum and has developed a history of wide price variance that could make it the speculative crypto of choice for market participants looking to hop on board during a rally.

Elon Musk’s Pet Crypto

Elon Musk’s empire is like the universe—it is expanding. Aside from Tesla (NASDAQ:TSLA), the world’s leading electric-vehicle maker, he is the founder, CEO and chief engineer at SpaceX. His portfolio also includes The Boring Company, which addresses traffic and logistical issues in cities by constructing tunnels. He co-founded Neuralink in 2016, a company that creates devices to embed in the human brain, facilitating merging with machine technology. Musk explains the product as “a Fitbit in your skull.”

Musk made millions from interests in Zip2 and PayPal (NASDAQ:PYPL). Tesla’s growth made him billions and vaulted him to become the world’s wealthiest person. In April, he offered $44 billion for Twitter (NYSE:TWTR), the social media platform. He plans to take the company private, expanding his empire.

Musk is a modern-day Leonardo da Vinci or Thomas Edison, with an expanding portfolio of diversified businesses. He is also a cryptophile, holding a portfolio of cryptocurrencies. Over the past years, he developed a particular affinity for Dogecoin, the crypto that began as a joke and grew into a top-tier digital currency. Musk is so enamored with DOGE that he owns a Shiba Inu puppy named Floki. The Shiba Inu is DOGE’s mascot and brand. Each time Musk tweets about DOGE, the cryptocurrency’s price volatility tends to soar.

11th Leading Asset In Its Class

On May 10, DOGE was the 11th leading cryptocurrency out of more than 12,390.

Top Cryptos By Market Cap.
Top Cryptos By Market Cap.

Source: CoinMarketCap

The chart shows that at 11.09 cents per token, DOGE’s market cap stands at more than $14.78 billion. DOGE’s position affords the crypto the liquidity and critical mass that is no joke.

Cryptos Move Higher, Lower On Sentiment

Cryptocurrencies are alternative means of exchange. Devotees like Musk, Jack Dorsey, and others believe cryptos will compete with fiat currencies over the coming years. While central banks and governments can issue fiat legal tender to their heart’s content, crypto values are untouched by government interference. Their values are solely determined by bids to buy and offers to sell in the market.

Since sentiment determines price levels and, with over 12,300 cryptos to choose from, branding and positioning in the market are critical success factors. Musk’s adoption of DOGE as his pet crypto and its Shibu Inu mascot has created a tremendous following.


Source: CoinMarketCap

The chart shows that DOGE was mainly at a fraction of one penny from 2013 through early 2021. Musk’s interest pushed the price to a high of nearly 70 cents per token in May 2021. At the 11.09 cents level on May 10, DOGE corrected lower with the rest of the asset class. However, the crypto remains at multiples of its pre-2021 price level.

Low Nominal Prices Attract Speculators

Bitcoin’s rise from 5 cents in 2010 to nearly the $69,000 level in November 2021, and its current price level at more than $30,000 per token, created a speculative frenzy in the cryptocurrency asset class.

At the 11 cents per token level, investors and speculators have flocked to DOGE as it moved higher and lower with the other asset class members. A low per-token-price creates a magnetic psychological attraction for investors and speculators dreaming of Bitcoin-like returns. The Shiba Inu brand and Musk’s participation increase the crypto’s appeal.

Bitcoin, at around $31,000 per token, and Ethereum, at the $2,340 level, are expensive. A speculator can buy about 282,000 DOGE for the price of one Bitcoin or more than 21,200 DOGE for one Ethereum token.

If Bitcoin, Ethereum Take Off, DOGE Could Offer Attractive Percentage Reward

High interest rates, a rising US dollar and volatility in markets across all asset classes have weighed on cryptocurrency prices since November 2021. Bitcoin and Ethereum are the market leaders, with approximately 61% of the asset class’s market cap, and the leaders tend to dictate the path of least resistance of all crypto prices.

Bitcoin and Ethereum are searching for bottoms. If the price action over the past years repeats, other substantial rallies could be on the horizon in the coming weeks, months, and years. When they take off on the upside, DOGE is likely to follow like an obedient Shiba Inu puppy, with Musk cheering his favorite crypto via his new toy, the world’s leading social media platform.

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward

Related Articles

Anthony Cheung
The Crypto Comeback   By Anthony Cheung - Apr 03, 2022

Bitcoin comeback After a rough start to the year cryptocurrencies have come back to life. Find out what comes next!Recession warning The inversion of the yield curve has the...

Dogecoin: A Top-Tier Crypto That Holds Possible Attractive Percentage Reward

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (4)
som sithy
som sithy May 13, 2022 9:39
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Mohd Khairuddin
Mohd Khairuddin May 12, 2022 16:32
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Games already over the moment Russian mafias stop buying the cryptos.
Rodolfo Barraco
Rodolfo Barraco May 12, 2022 12:41
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Short all crypto. Clearly bot safe heaven. Acts as leveraged nasdaq. This is worse than .com crash. Short all cruptos long gold. Buy the bottom in 20-30 months
Tradelikebanks Tradelikebanks
Tradelikebanks Tradelikebanks May 12, 2022 10:29
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Andy, your article is very smart. Dogecoin will take commands from the big boys.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email