Originally based on a meme, Dogecoin is a satirical crypto that was created by Billy Markus and Jackson Palmer back in 2013. It was built mainly to be a contrarian crypto to the king of cryptos, Bitcoin, and as a jibe at the idea. Thus, when Dogecoin was launched - to rebuke the idea of rarity, DOGE was built in such a way that there was no maximum supply for the token and there are 10,000 new coins minted every minute on the blockchain.
Well, ever since its launch, Dogecoin has been known to be a crypto project that has been sort of a meme and held little value. But despite that, Dogecoin has had a pretty strong community of enthusiasts who have been supporting the coin and backing the development of the blockchain to make it more relevant and usable.
Ever since Elon Musk's foray into the industry - popularly nicknamed as the 'Doge-father' in the world of crypto, things began to change. It all began when Musk stated publicly that while Bitcoin was a good store of value, it wasn't a good means of transfer of value to become a viable form of payment - something that Dogecoin was better at.
With the latest bull run that began early in 2021, DOGE price soared over 7000%, driven by retail enthusiasm and thanks to consistent supporting tweets by the Tesla founder, and also marked by his appearance on the hit show 'Saturday Night Live' in May 2021.
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And the crazy rally in DOGE attracted a lot of media attention as crypto understanding and knowledge began to become more and more mainstream and somewhat widely understood. This led to a positive reinforcement cycle as more and more people hopped onto the bandwagon to invest in this token.
Fast forward to 2022, the bear market had set in on full throttle and DOGE lost nearly 80% in the year. But despite that, DOGE's community backing and excitement don’t seem to ebb away!
Well, that is the part we will be getting to. There are two ways you can earn out of a particular crypto. Firstly, we have the method of simple price appreciation where you can invest in a token at a particular price point that you think the coin is undervalued. The second way, one which is quickly gaining more steam as of late, is thanks to the growth of decentralized finance (DeFi) where you can stake your coins to a liquidity pool and earn passive income out of your idle holdings! You can easily avail of this feature through a DeFi wallet, like the Okto app.
Let's look at the first aspect of price appreciation through a simple observation of DOGE's price charts.
From a technical standpoint, Dogecoin has been one of the better-performing tokens amongst the top cryptos by market cap ever since the beginning of 2023. DOGE price has managed to recover a little less than 40% this past month and has also managed to sustain the golden crossover of the 50 and 200-day moving averages, which would serve as a crucial support level for the token.
Additionally, it has broken out of the $0.09 resistance level on the chart and has also managed to touch the psychological level of $0.1. If in the days to come, the coin has been able to convincingly break out of the $0.1 mark, we could see a strong sustained upward action going forward. The next significant levels of resistance would be $0.12 (marked with a black trendline) and $0.15, which was the last local high touched by the DOGE price and a breakout of these would help immensely in the token's recovery phase as the bear run seemingly comes to an end.
Coming to the second way, you can earn from DOGE tokens is the passive way in the world of decentralized finance (DeFi). With the self-custodial, DeFi crypto wallet, like Okto, you can safely hold and even stake your DOGE holdings to all the available liquidity pools to earn some extra income from it.
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As of writing, the DOGE-BNB liquidity pool on the Okto app offers returns of up to 10.92% on the coins staked. That being said, it is important to do your own research before investing your money in crypto assets or staking your funds in various DeFi protocols.
Values as on 6 February, 2023.