Dogecoin: From Meme Coin to Mainstream

Originally conceived as a joke, Dogecoin has, over 11 years, become a popular payment method among merchants. The peculiarities of this well-known meme coin were examined in Bloomberg.

Journalists noted that the average network fee is less than $0.01, approximately 79 times cheaper than on the Bitcoin blockchain. Transactions are processed in under a minute. DOGE is suitable for money transfers, where fees can reach 7% due to intermediaries.

Dogecoin’s fame is bolstered by its humorous nature and the support of celebrities like Snoop Dogg, Lil Yachty, Elon Musk, and Mark Cuban.

In 2021, Cuban’s Dallas Mavericks introduced DOGE as a payment method for goods and tickets. To date, the NBA team has received only 25,000 coins, according to Cuban. The entrepreneur described it as an “inexpensive way to be part of a vibrant online community.”

The co-founder of New York’s Williamsburg Pizza, which accepts Dogecoin, highlighted its “virality.” In his view, this makes the cryptocurrency an effective marketing tool.

In the BitPay processing app, DOGE ranks fifth, ahead of XRP and USDC, as noted by Bloomberg.

“Over time, Dogecoin has become less of a meme coin and more of a blank slate — without significant technological risk. Compared to other cryptocurrencies, it offers a solid combination of recognizability, simplicity, and low cost,” commented Frederick Collins, CEO and founder of the Velo Data platform.

One of the meme coin’s enthusiasts is Elon Musk. The entrepreneur has previously been an active promoter of the cryptocurrency. In April 2022, he proposed reducing the cost of Twitter Blue and adding the option to pay for subscriptions in DOGE. In January, Tesla began selling merchandise for Dogecoin.

A few weeks ago, the businessman supported the proposal to reinstate the option to pay for Tesla goods with DOGE. Earlier this year, the company had removed this option.

Me

— Elon Musk (@elonmusk) August 30, 2024

In August, Musk and Tesla won a $258 billion class-action lawsuit over the promotion of Dogecoin.

The plaintiff sought to prohibit the billionaire and his organizations from promoting the coin and to declare trading “gambling.” He alleged that the defendants manipulated the market and were involved in insider trading.

Back in August 2024, Musk responded to U.S. presidential candidate Donald Trump’s offer to join his team by posting an image of himself with the caption D.O.G.E.