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The price of Dogecoin has been on a massive rise within the past three weeks. The price has yielded over 135% profits so far, rising from the previous low in October at $0.06299 to create a new high at $0.15900. The bulls have managed to sustain the price within this level, while some analysts still hope for more gains from this coin. Many investors have been wondering whether to invest in Dogecoin given its present bullish trend, notwithstanding the current bear season that has kept the prices of other Cryptocurrencies down.

This work will help you understand the major reason why Dogecoin has been on the rise in the past weeks.

What is Dogecoin

Dogecoin is an open-source digital currency that started as a meme coin using the Shiba Inu dog head as its logo in 2013. This coin later found its way into the crypto mainstream and transitioned from being a meme coin to becoming the 8th most valuable Cryptocurrency today. This coin has garnered a large community and is today backed by the world’s richest man Elon Musk who has helped the popularity of this Dogecoin.

What is the use case of Dogecoin?

  • Used for digital payments and purchasing products from companies that accept crypto payments, especially Tesla, Newegg, Twitch, etc.
  • Used for giving tips on social media, especially Reddit and Twitter.

Price history of Dogecoin

Dogecoin has emerged as one of the most successful crypto projects launched so far. Its price growth has been very impressive from its launch up to the present moment. The coin has yielded over 164980% returns judging from its all-time low created in May 2015 at $0.00008690 to its all-time high attained in May 2021 at $0.731578. Some believe that this coin has the potential to overtake Bitcoin in the future to become the number one most valuable Cryptocurrency in the world.

Why is the Dogecoin price on the rise?

Dogecoin has been the trending Cryptocurrency for the past three weeks now. This is due to the massive increase in its price within the past few weeks. Within the first week of October till this point, the price of Dogecoin rose drastically from $0.06299 to create a new high of $0.15900. This marks over a 135% increase in less than a month.

The major cause of this increase seen in the price of Dogecoin owes to the recent acquisition of Twitter by Elon Musk, who has been a known supporter and Investor in Dogecoin. His recent tweets immediately after the acquisition of this popular platform point to the conclusion that Dogecoin will likely be made the number one cryptocurrency for making payments on the platform.

Similarly, the new CEO appointed by Elon Musk to head the Twitter projects stated in his tweet that he is fully committed to protecting Dogecoin using the Twitter platform. This has greatly roused investors and attracted massive investment into Dogecoin within the past weeks.

Is Dogecoin a good investment?

Dogecoin has become one of the most successful crypto projects launched so far. This coin yielded over 164000% ROI to its earliest investors when the price got to its all-time high at $0.731578 in May 2021. The price has depreciated since then. However, with the recent endorsement of this coin by the new Twitter CEO Elon Musk, many believe that the doors have been opened for this coin to perform higher. However, the fact that there is no maximum supply for this coin should always call for caution in investment as it is subject to future price inflation.