In December of 2017, the cryptocurrency market experienced a surge in prices with various digital assets soaring to all-time highs. One of these assets was Dogecoin, a digital currency that began as a lighthearted internet meme. Despite its origins, Dogecoin gained momentum in the crypto community and became a viable investment option. In this article, we will take a closer look at the Dogecoin price movement in December 2017 and explore the factors that contributed to its rapid increase in value.
The Rise and Fall of Dogecoin
The Birth of Dogecoin
Dogecoin, a cryptocurrency that started as a joke, was created in December 2013 by Billy Markus and Jackson Palmer. The name “Dogecoin” was inspired by the popular internet meme of a Shiba Inu dog. The idea behind the creation of Dogecoin was to create a fun, friendly, and approachable cryptocurrency that would appeal to a broader audience than Bitcoin.
The Early Days of Dogecoin
In the early days, Dogecoin was primarily used for tipping content creators on social media platforms such as Reddit and Twitter. The value of Dogecoin was relatively low, with one DOGE worth less than a cent. However, as the popularity of Dogecoin grew, so did its value.
The Rise of Dogecoin
In December 2017, Dogecoin experienced a significant surge in value, with its price rising from $0.002 to $0.017 in just a few days. The sudden increase in the price of Dogecoin was partly due to the hype generated by the cryptocurrency community on social media platforms. The community members were encouraging people to buy Dogecoin, and many people did, causing its price to soar.
The Fall of Dogecoin
Unfortunately, the sudden rise in the price of Dogecoin was short-lived. As quickly as it rose, its value plummeted, and by the end of December 2017, the price of Dogecoin had dropped back down to $0.005. Many investors lost money during this time, and the hype surrounding Dogecoin died down.
Reasons Behind the Price Surge
The Power of Social Media
One of the primary reasons behind the surge in the price of Dogecoin was the power of social media. The cryptocurrency community on Reddit and Twitter was actively promoting Dogecoin, and many people bought into the hype. The community members were tipping each other with Dogecoin, and this helped to increase its popularity.
The Bitcoin Boom
Another reason why Dogecoin experienced a surge in value was the Bitcoin boom. In December 2017, Bitcoin’s price was skyrocketing, and many people were looking for other cryptocurrencies to invest in. Dogecoin was one of the few cryptocurrencies that was affordable, and it offered an excellent opportunity for people to invest in a cryptocurrency that had the potential to increase in value.
Popularity of Dogecoin
Dogecoin’s popularity was also a significant driver of its price surge. The cryptocurrency community loved the friendly and approachable nature of Dogecoin, and its unique branding made it stand out from other cryptocurrencies. People were drawn to the fun and lightheartedness of Dogecoin, and this helped to increase its value.
The Importance of Research
One of the essential lessons that investors can learn from the rise and fall of Dogecoin is the importance of research. Before investing in any cryptocurrency, it is crucial to do your research and understand the risks involved. Many people invested in Dogecoin without fully understanding the risks, and they lost money as a result.
The Power of Hype
Another lesson that investors can learn from the rise and fall of Dogecoin is the power of hype. The cryptocurrency community is incredibly active on social media platforms, and their influence can cause a cryptocurrency to surge in value. However, this hype is often short-lived, and investors need to be cautious when investing in cryptocurrencies that are experiencing a surge in value.
The Importance of Diversification
Investors should also understand the importance of diversification. Investing all your money in one cryptocurrency is a risky strategy, and it is essential to diversify your investments to reduce your risk. By investing in a variety of cryptocurrencies, you can spread your risk and increase your chances of making a profit.
FAQs: Dogecoin Price in December 2017
What was the price of Dogecoin in December 2017?
In December 2017, the price of Dogecoin experienced a significant increase, reaching an all-time high of USD $0.018773 per DOGE on December 20th. This price surge was due to a combination of factors, including increased media attention, growing interest from investors, and the overall bullish market sentiment of the cryptocurrency market at the time. However, the price of Dogecoin also experienced a sharp decline in the following weeks, falling back down to a more stable range around USD $0.005.
What caused the sudden increase in Dogecoin’s price in December 2017?
There were several reasons why the price of Dogecoin surged in December 2017. One of the primary factors was the increasing media attention that Dogecoin received, particularly from major news outlets and social media influencers. This helped to spark a renewed interest in the coin, as more people became aware of its unique history and community-driven ethos. In addition, the cryptocurrency market as a whole was experiencing a significant uptick in value at the time, which also contributed to the rising price of Dogecoin.
Why did the price of Dogecoin decline after its December 2017 peak?
After reaching an all-time high of USD $0.018773 per DOGE on December 20th, the price of Dogecoin experienced a sharp decline in the following weeks. This was largely due to a market correction, as investors who had made significant profits from the coin’s rise began to take their profits and sell their holdings. Additionally, the overall market sentiment of the cryptocurrency market shifted from bullish to bearish, leading to a decrease in demand for Dogecoin and other cryptocurrencies.
Is it possible for Dogecoin’s price to reach similar levels to its December 2017 peak in the future?
While it is impossible to predict the exact future price of Dogecoin (or any cryptocurrency), it is certainly possible for the coin’s price to reach similar levels to its December 2017 peak. This would likely require a combination of factors, including renewed media attention, growing interest from investors, and an overall bullish market sentiment. However, it is important to remember that the cryptocurrency market is highly volatile and subject to sudden fluctuations in value, so any predictions about Dogecoin’s future price should be taken with a grain of salt.