Dogecoin (DOGE) in turbulent 2024: from memes to $60 billion capitalization
This article will detail the events that have affected Dogecoin in one way or another throughout 2024.
Renewed interest in memcoins
At the beginning of 2024, Dogecoin caught the attention of investors due to the renewed interest in memcoins. In January, the price of DOGE surpassed the $0.10 mark for the first time in over a year, driven by the overall growth of the crypto market.
Also, according to data from the analytical service Santiment, wallets with balances between 10 million and 100 million, DOGE increased their holdings by 25 million coins in March 2024. This indicates that large holders ("whales") showed interest in Dogecoin at the beginning of the year.
Initiatives to grow the Dogecoin ecosystem
In February, the Dogecoin Foundation announced the launch of a developer grant program to support and expand the DOGE ecosystem. Through this program, several key projects have been introduced to improve the functionality and accessibility of Dogecoin:
- LibDogecoin: a library that makes development accessible and fosters a developer ecosystem through multilingual bindings. It allows developers to integrate Dogecoin into their applications, simplifying the development process and extending the use of DOGE.
- GigaWallet: a payment gateway that reduces barriers to Dogecoin adoption in business and commerce. GigaWallet provides businesses with an easy way to integrate DOGE into their payment systems, helping to increase the number of companies accepting Dogecoin as a means of payment.
- RadioDoge: an initiative to provide access to Dogecoin to 1.7 billion unbanked users through radio communications. The RadioDoge project enables transactions using DOGE in remote regions without access to traditional internet networks, expanding the cryptocurrency's reach.
Strengthening DOGE's position in the market
At the beginning of spring, Dogecoin strengthened its position, increasing price and market capitalization. At the beginning of March, the price of DOGE was around $0.1853, and market capitalization was around $26.6 billion. By the end of the month, the price of Dogecoin had increased to $0.37645, and market capitalization had reached $55.27 billion.
Thus, during March 2024, Dogecoin price increased by $0.19115, which is approximately a 103.1% increase. The market capitalization increased by $28.67 billion.
Dogecoin Core technical update
In June 2024, Dogecoin developers released a protocol update called Dogecoin Core 1.14.7. The main improvements implemented in Dogecoin Core 1.14.7:
- The update addressed identified vulnerabilities in the codebase, improving the network's overall security.
- Third-party libraries and dependencies were updated to the latest versions, reducing the risks associated with known vulnerabilities.
- Changes were introduced to reduce transaction fees, making Dogecoin more cost-effective for users.
- Optimized transaction processing to increase the number of transactions the network processes per unit of time, improving scalability.
These improvements have helped build community trust in Dogecoin and made the network more efficient and reliable for users.
Partnerships and integrations
In July 2024, several online retailers announced the adoption of Dogecoin (DOGE) as a means of payment, expanding its use in e-commerce and increasing its popularity among users:
- Jomashop, an online retailer specializing in luxury watches and jewelry with an annual turnover of $150 million, has started accepting Dogecoin to pay for goods.
- Blockchain-based tour operator Travala.com accepts payment in various cryptocurrencies, now including Dogecoin.
- The $5 billion e-commerce platform Shopify, through integration with Coinbase Commerce and BitPay, can accept Dogecoin as payment.
Litigation and its implications
In June 2022, a group of investors filed a class action lawsuit against Elon Musk and his companies, including Tesla and SpaceX, accusing them of manipulating the price of Dogecoin and creating a pyramid scheme. The plaintiffs initially sought $258 billion in damages, alleging that Musk used his public statements and social media activity to artificially inflate the value of Dogecoin.
In August 2024, a U.S. federal court dismissed the suit, stating that the plaintiffs failed to provide sufficient evidence of fraud or manipulation by Musk and his companies.
DOGE-1 mission launch
In August, SpaceX confirmed plans to launch the DOGE-1 lunar mission. The DOGE-1 mission is a unique project funded entirely by the Dogecoin cryptocurrency (DOGE). The mission was initiated by Canadian company Geometric Energy Corporation (GEC), which announced the project in May 2021.
The mission is designed to demonstrate the application of the Dogecoin cryptocurrency beyond Earth orbit, establishing the basis for interplanetary commerce.
DOGE-1 is an essential step in demonstrating the capabilities of Dogecoin cryptocurrency in real-world projects. It highlights the potential of using cryptocurrencies to finance and realize complex technical projects.
Dogecoin exchange rate fluctuations
In September 2024, Dogecoin showed significant volatility, reflecting the general fluctuations of the cryptocurrency market. At the beginning of the month, the price of DOGE was around $0.1282. By the middle of the month, it had declined by about 21%. The market capitalization was $18.8 billion. As the price fell, the capitalization decreased to $14.8 billion — a decline of about 21%.
By the end of September, the DOGE price had recovered to $0.1180, an increase of 16.7%. At $0.1180, the market capitalization was approximately $17.3 billion, an increase of 16.9%.
Thus, despite the significant decline, Dogecoin has demonstrated its ability to recover and be resilient in market volatility.
Political events and their impact
After the U.S. presidential election, Donald Trump announced the Department of Government Efficiency (DOGE) creation, which Elon Musk and Vivek Ramaswamy will head. The announcement caused the price of Dogecoin to rise as investors took it as a positive signal for the cryptocurrency.
After the announcement, Dogecoin's price rose about 15%, and its market capitalization reached about $19.9 billion, representing an increase of about 15% from the previous value.
Post-election and the rise in Dogecoin price
After Donald Trump's November 2024 presidential election victory, Dogecoin saw significant growth. By mid-November, Dogecoin's price reached $0.42, and its market capitalization exceeded $60 billion, allowing DOGE to surpass companies like Ford and Delta Air Lines in terms of market value.
With a capitalization of about $60 billion, Dogecoin ranked 6th among all cryptocurrencies, behind only:
Conclusion
In 2024, Dogecoin has gone from a meme cryptocurrency to a significant player in the digital asset market. However, like any cryptocurrency, Dogecoin remains prone to volatility and external factors, which requires a cautious approach from investors.