Looking at a Barron’s headline from this era, it becomes apparent that the hype and optimism surrounding Dogecoin has not aged gracefully.
Two years ago, Barron’s published an article with the title “With a market cap of $78 billion, Dogecoin needs to be taken a little more seriously.”
At the time, the whimsical meme cryptocurrency was riding the tidal wave of hype, fueled by a passionate online community and support from the likes of Tesla CEO Elon Musk. But looking back, it becomes clear that the title, much like the house of cards built on the hype surrounding meme-based digital currency, hasn’t aged gracefully.
Reflecting on the title, Nate Geraci, President of ETF Store, tweeted“This might be my favorite title of all time.”
At the start of 2021, the value of Dogecoin skyrocketed, starting the year at less than a penny and surpassing 69 cents in May. The digital currency has caught the attention of retail investors, with trading platforms like Robinhood struggling to manage the volume.
The social aspect of cryptocurrency, which was launched as a joke in 2013, acted like a gust of wind propelling its rapid growth.
Online communities rallied around events like “Doge Day” on April 20, and many attributed the coin’s earnings to Musk’s scheduled appearance on Saturday Night Live.
Despite its lack of a supply cap and limited mainstream appeal, Dogecoin’s enthusiastic community has helped boost its market capitalization to $78 billion. However, many critics rightly viewed the coin as an example of market excess.
Fast forward to today, and Dogecoin is down 89% from its all-time high, a stark reminder of the volatile nature of the cryptocurrency market.
Even though the online community behind Dogecoin remains active, the coin’s dramatic fall serves as a warning about the risks of pursuing speculative investments based solely on hype.