And we all know their record.
This week, the Dallas Mavericks made Dogecoin holders happy by announcing they’d accept the coin for tickets and merchandise.
This isn’t the first time the 14th-largest cryptocurrency by market cap has played a role in the sports world. From auto racing to ice sports, Doge just keeps popping up.
In 2014, the Jamaican two-man bobsled team was having trouble getting to the Winter Olympics, not because it hadn’t qualified but because it didn’t have the money to participate. In a fundraising plea, driver Winston Watts said, “Right now, we’re at zero.”
Internet denizens, many of whom were raised on a childhood diet of Kool Aid and Cool Runnings (the 1993 film about the underdog 1988 Jamaican four-man team), responded…with Dogecoin. The Dogecoin Foundation, a now-defunct charity, organized a fundraiser that brought in $30,000 in the coin.
The team, unfortunately, finished 27th out of 28 teams.
2014 was a big year for the bogus Bitcoin. Dogecoin-loving Redditors then raised $55,000 to sponsor NASCAR driver Josh Wise.
Racing in the Dogecoin Digital Currency / Reddit.com car for the first time, Wise finished 20th. He ended up racing the Shiba Inu-adorned car again in the Sprint Showdown and the All Star Race, finishing in 18th and 15th place, respectively. But the magic was gone after that—he finished in 28th and 48th in his final two races in the car.
The Dogecoin car is making something of a return to NASCAR this weekend at the Alsco Uniforms 300 in Las Vegas. Sean Taylor, CEO of car suspension company Springrates, chose to include Dogecoin imagery on the car he sponsors for driver Stefan Parsons.
TO THE MOON! 🐕+🚀=🌔🏁
We're bringing @dogecoin along for the ride this weekend in Las Vegas for the NASCAR Xfinity Series race!
— SPRINGRATES (@Springrates) March 2, 2021
“Lately, I have been obsessed with learning more about blockchain and the future of decentralized currency. I had the idea of including Dogecoin on the car for this race while chatting with Stefan following the season opener in Daytona,” Taylor is reported as saying. “It was ironic because at the time, I wasn’t aware his dad’s team previously ran the Dogecoin car in 2014.”
Parsons finished in 13th place in his first race this year.
Basketball and Hockey
Also this week, the NBA’s Dallas Mavericks (18-16) began accepting Dogecoin as payment. Owner Mark Cuban, who has spent the last month proselytizing for Ethereum, said, “We have chosen to do so because sometimes in business you have to do things that are fun, engaging, and hopefully generate a lot of PR.”
Other teams can’t resist, even if they don’t know how to spell it. On March 3, the NHL’s Vegas Golden Knights tweeted simply: “Doge Coin.”
To all you people getting all excitable about #Doge. Relax. It's Fantasy Sports for Crypto. It's fun to play with. The communities that have been built around it are fun. Like Sports, Fantasy or Otherwise, some people go overboard. It Happens. Be Young. Have Fun #DogecoinRise
— Mark Cuban (@mcuban) March 5, 2021
The Knights (14-4-1) are first-place in their division, proving that even winners love the joke coin.
Dogecoin was created by Jackson Palmer and Billy Markus as a joke in late 2013 as Bitcoin crested above $1,000 for a few days in December, which seemed absurd to many at the time. They were riffing on Bitcoin clones and appropriated the meme of a Shiba Inu dog to demonstrate that it’s all just a wee bit silly.
But just because it’s a joke doesn’t mean there isn’t money at stake. Just as Redditors rallied behind GameStop stock earlier this year despite the company’s poor prospects, light-hearted tech lovers turned Dogecoin into an asset with a market cap above $6 billion.
And we all know their record.
Crypto analyst Justin Bennett says that Dogecoin (DOGE) could be ready to make a run for its next critical level about 37% above current prices.
The popular analyst tells his 88,000 Twitter followers that DOGE is attempting to break out of a long descending resistance line that it has been up against since May.
“DOGE looks ready (as long as $BTC cooperates).
Just needs to get above 0.27 on a daily closing basis to open up 0.34+.”
In the near term, Bennett says DOGE needs to turn the $0.26 level into support and close above $0.27 before continuing higher to his initial target of $0.34. At time of writing, Dogecoin is trading at $0.26 according to CoinGecko.
Looking at Bitcoin, the analyst says BTC’s ability to maintain the $60,000 level is a major show of strength that could have big implications in the broader markets.
“Although the BTC weekly candle might not look great, it still held above $60k.
That’s what I was looking for. Doesn’t mean we can’t see more pullback before further upside, but it does mean $60k is holding as support on a weekly closing basis.
Bennett also has his eye on Bitcoin dominance, which compares BTC’s market cap to the rest of the crypto markets. He says it’s bounced off a support level and is currently on its way up.
“BTC.D is bouncing from 44.5% support.
While surging Bitcoin dominance often suggests that altcoins will underperform, Bennett says this may only hold true in the short term. He says if the king crypto is looking healthy, then altcoins might take it as a signal to move up.
“This isn’t necessarily a bad thing for altcoins.
Will they suffer if BTC.D heats up again?
In the short term and against BTC, yes.
But Bitcoin strength now is massively bullish for alts over the next few months.
The popular meme coin shiba inu (SHIB) once again saw a massive pump over the weekend, rising by more than 50% on Saturday and Sunday before a correction reduced the gains as the new week started. And based on experience from other meme coins, even deeper corrections could arrive when the hype dies down.
Judging from data from some exchanges, including FTX and Poloniex, the weekend pump marked a new all-time high for the self-proclaimed dogecoin (DOGE) killer. However, on some other exchanges, including Binance, a higher peak was seen on the token’s listing day on May 10 this year, although this may have been the result of thin order books on the first day of trading.
At the time of writing, (13:10 UTC), SHIB was down by 7% over the past 24 hours, trading at USD 0.00003865. However, the token still remained up by more than 40% for the past 7 days, well ahead of DOGE’s 10% rise over the same period.
SHIB price chart:
Today’s correction for SHIB came just as Tesla chief Elon Musk replied to a tweet from a Shiba Inu community member asking how many SHIB he holds. “None,” Musk answered, without elaborating, to which the community member replied “U should consider buying some.”
Further, while responding to another user in the same thread, Musk also warned “don’t bet the farm on crypto,” before adding:
“True value is building products & providing services to your fellow human beings, not money in any form,” the Tesla founder and dogecoin proponent said.
The advice and blunt answer from Musk that he does not hold SHIB, which came just as the coin was correcting from its highs, begs the question of whether SHIB holders are simply betting that social buzz, and particularly mentions from well-known investors like Musk, will be what is needed to propel the price higher.
And while history has shown that amazing price pumps can occur from time to time for meme coins like DOGE and SHIBA, lessons from the DOGE mania in May this year remind that the subsequent corrections can be deep when rallies are purely driven by hype.
From its all-time high on May 8 of USD 0.74, DOGE corrected by as much as 78% within less than two months, to a low of USD 0.16 on June 22. (However, at the same time, the whole market was dropping.) In either case, the original dog-themed meme coin has since recouped some of its losses, but still remains down by around 65% from its peak, even as bitcoin (BTC) has reached new all-time highs.
The fall in prices for dogecoin can also be seen in Google search data, which is often used as a proxy to determine general interest in a subject.
Judging from Google Trends, worldwide Google searches for the term “dogecoin” peaked in mid-May, just as the coin reached its all-time high in the market. Since then, search interest has fallen significantly and is still nowhere near its highs.
The picture perhaps becomes even clearer when we add the term “shiba inu.” The data then shows how interest in DOGE has recently been overtaken by a surge in search interest for shiba inu.
Despite the significant fall in both price and search interest, however, the dogecoin community is still alive and responding to tweets from the self-proclaimed “dogefather” Elon Musk. This was again illustrated just before the weekend, when the Twitter account UberFacts tweeted “Elon Musk is predicted to become the world’s first trillionaire, thanks to SpaceX.”
About two hours later, Musk replied “*In Dogecoin,” which immediately led to a spike in the price of DOGE visible on the hourly chart.
*In Dogecoin— Elon Musk (@elonmusk) October 22, 2021
Meanwhile, SHIB has recently gotten some attention from a petition on Change.org that is asking the popular US-based stock and crypto broker Robinhood to list SHIB for trading on its platform. As of Monday, the petition had already received well over 300,000 signatures from users.
“Dogecoin has been a huge success for Robinhood, and its investors. We have all enjoyed the ride. Shiba Inu is a similar meme coin with genuine potential, up 2000% in the last weeks,” the petition said.
So far, and despite some unverified rumors circulating online, no word has been heard from Robinhood that the trading app is even considering adding SHIB to its platform.
The SHIB token is now ranked 11th in terms of market capitalization, two spots below its fellow dog-themed meme coin DOGE. The ranking today means that the valuation difference between SHIB and the original DOGE has remained roughly similar since the two coins earlier this month stood head to head for meme coin dominance.
And although the “dogecoin killer” is still valued lower than the original dog-themed meme coin, both meme coins, which are generally seen as having little to no real utility, have already surpassed major DeFi-related tokens such as the Avalanche blockchain’s AVAX token and Uniswap’s governance token UNI.
Commenting on the recent rally for SHIB over the weekend, Ben Caselin, Head of Research and Strategy at trading platform AAX, said “speculation is the primary driver” behind meme coin prices.
“During a bull market, when sentiment runs high, it doesn’t take much for a memecoin to see a significant boost,” Caselin said in an emailed comment, before warning that “there is no specific reason” for the huge inflow of capital into SHIB.
“Considering the history of crypto and how market dynamics have generally played out over the past decade, SHIB is likely to be challenged by other viral projects and is likely to shed much of its value when the top assets such as bitcoin and ethereum enter into the final stages of this cycle’s bull run and the usual correction that follows as the assets secure their newly raised price floor,” Caselin concluded.
Community-driven coins seem to rise only when the community forgets about them.
According to the most recent data provided by Santiment, “memecoins” like SHIB, DOGE and ELON are moving with a reverse correlation with the so-called “Social Dominance” indicator. Once the indicator reaches new lows, the price of the aforementioned coin rapidly rises.
Overall, meme-based and community-driven coins have been the trend in recent months with Shiba Inu showing a 490% price increase, Doge being up by 28% percent in the last month, and Elon Musk showing a ridiculous 889% price increase in the last month only. One way or another, the community is the main fuel for those coins rather than institutional investors or use cases.
While trading pairs for such coins remain extremely volatile, there is no proper way to analyze them by using financial or technical analysis, which leaves traders with on-chain and market metrics like the ones presented by Santiment.
On the chart provided by the service, users can see the price of each mentioned coin and the Social Dominance indicator. Once communities “forget” about the coins and the indicator starts moving downwards, their price rapidly goes down and retraces back up only when whales are buying them back.
While the indicator in fact has a reverse correlation with the price of those assets, it only shows common accumulation and distribution cycles in which investors pick up assets only when retail traders are less interested in them.
But once the community picks up the hype and starts buying in, large addresses are taking profits and putting selling pressure on the asset, which leads to a rapid retrace down. While the coin is losing its monetary value, it also loses the retail trader’s interest.