In the last halving cycle, Dogecoin began surging seven months after the Bitcoin halving, hitting a new all-time one year after the event, a pattern some analysts believe could recur.
Despite being purely speculative, meme coins continue attracting investors as they are viewed as fairer access points to crypto than VC-controlled major coins like Solana.

The Bitcoin halving was a landmark event, and since then, analysts have been mapping out the price charts of the other cryptos in relation to the quadrennial event. This includes Dogecoin, the leading memecoin which in the last halving surged to new heights almost a year after.

Dogecoin was trading at $0.1508 at press time, having moved sideways for the past day and dropped slightly over the past week.

Analysts have been charting the DOGE price and comparing it to the last halving cycle, just as they have done with Uniswap, Shiba Inu, XRP, and dozens more, as Crypto News Flash reported.

In 2020, the halving took place in mid-May, cutting the block reward from 12.5 BTC to 6.25 BTC. The Dogecoin price barely moved at first, but by the end of the year, it had nearly doubled, trading at $0.0048.

In the following year, 2021, DOGE started to surge. By mid-February, it had surged 1,400% to trade at $0.078. By early April, its price had hit close to 500% gains and was trading at $0.4084. Two months later, DOGE skyrocketed to a new all-time high of $0.75. From the halving day, DOGE had gained 28,500%.

If DOGE is to replicate its price pattern from the last halving, it would hit $42.75 by mid-next year. This would push the market cap to a staggering $6.16 trillion, making the meme coin bigger than all global economies except the US and China and twice as high as the world’s largest company, Microsoft.

This scenario is unlikely. However, Bitcoin’s halving augurs well for most altcoins, and Dogecoin is no different. While it may not record wild gains like it did back in 2021, it could still go up significantly.

Why Dogecoin, Shiba Inu and Other Memecoins Will Never Lose Appeal

Memecoins continue to be one of the fastest-growing segments in crypto. This is despite most launching with no utility or set goals. Dogecoin, for instance, launched to poke fun at serious Bitcoin traders and was just a goofy meme for most of its lifetime.

However, while some expect this lack of utility to derail memecoins, they seem to flourish even more. According to some analysts, memecoins are retail investors’ response to the continued domination of major coins by big-pocketed investors.

Nowadays, every token that drops is heavily invested in by the major VCs, from Andreessen Horowitz and Paradigm to Coinbase Ventures and Digital Currency Group. Thus, when they launch, these VCs own a substantial portion of the tokens at massively discounted prices. The VC tokens are usually locked, leading to a ridiculously high fully diluted valuation (FDV), which combines all tokens, locked and circulating.

Gianluca Sacco, the chief operating officer at South African exchange VALR, explained:

These tokens are being seen as the fairest opportunity to participate in the crypto market right now, while the communities around them are just a lot of fun to be involved in… Many feel burnt by high FDV, low issuance tokens that have historically been offered by token projects at deep discounts to insiders and VCs at the expense of retail users.

 

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Filed under: Bitcoin - @ April 26, 2024 8:13 am