5 min read
Dogecoin miner's revenue rose by a percentage of 4,500 this year.
Dogecoin, a cryptocurrency similar to Bitcoin or Ethereum, irrespective of its unusual origin story, exploded in popularity in this current year of 2021. Dogecoin is now the fifth-largest cryptocurrency, as reported by the market cap.
Created by software engineers Billy Marcus and Jackson Palmer in late 2013, Dogecoin (DOGE) miners showcase a sudden massive revenue rise of over 4,000%.
This gain in value by Dogecoin in 2021 compelled Tesla CEO Elon Musk to call Dogecoin his favourite cryptocurrency. Elon Musk even named Dogecoin as the "people's crypto," thereby promising the people to plant a physical Dogecoin token on the moon.
A statement by Mr Musk on Dogecoin revenue :
On an audio app, Clubhouse, Elon Musk stated that Dogecoin had been joked and made fun of in the cryptocurrencies, but now, it's just the opposite. Fate is such that it would turn Dogecoin into the currency of Earth in the future.
What exactly happened with Dogecoin miner's revenue this year?
According to Byte Tree Records and CoinDesk, the daily revenue of Dogecoin miners touched a record as high as $3.6 million on April 26th, 2021. This increase is a 4,775% increase from January 1st, 2021, when the dogecoin revenue was $77,000.
This rise in the price of Dogecoin in 2021 has set miner revenue skywards. Earlier, Dogecoin had been a meme-based cryptocurrency, and today it had reached a record high of 45 cents, i.e. nearly 20% rise on just a 24-hour basis.
Key features of dogecoin revenue up this year :
1. Revenue of dogecoin miners on a daily basis broke off the record of $3.6 million on April 26th, 2021.
2. Dogecoin revenue estimates the operating predominantly miners to sell their coins as soon as possible.
3. Dogecoin miners get the reward in the form of newly created coins and transaction processing fees for block-mining and transaction-processing on the distributed ledger.
4. Based on Coin Metrics data, daily transaction fees showed up 60-fold this year, followed by several brief spikes.
5. On the other hand, transaction fees showed up this year is just $23,200, which is only 0.64% of the total miner revenue of $3.6 million on April 26th, 2021.
6. According to Byte Tree CIO, Charlie Morris, transaction fees have risen, but on the contrary, price deluged.
7. The cryptocurrency, Dogecoin, has been significantly influenced by humour tweets via Tesla and SpaceX CEO Elon Musk.
8. The real word adoption of Dogecoin shows an increase in traction gain. This gain is due to the adoption of various cryptocurrencies such as the Dallas Mavericks basketball team, medical supplier CovCare, etc., as a payment alternative.
9. According to Bitcoin bull Mike Novogratz, and supported by MarketWatch report, the market had been in elation due to the listing of Coinbase Global Inc (NASDAQ: COIN). This had led to increased revenue of Dogecoin.
Dogecoin Miners' Revenue attracting new players this year :
Dogecoin miners are far way more than just hobbyistic. A large number of crypto mining operations are now transforming to business toward altcoin by these Dogecoin's miners. • One of the best examples here is the company bEbang International (NASDAQ: EBON). EBON has been stuck towards DOGE (Dogecoin) even before the Dogecoin explosion in revenue of April took place. • The company EBON set forth an announcement back in February claiming that the company would expand mining operations to include DOGE and Litecoin (CCC: LTC-USD). • Furthermore, just a week ago, another company joined hands with Ebang as a forerunner of the upcoming DOGE mining wave. • According to reports, Hello Pal (OTCMKTS: HLLPF) is planning to sign a definitive purchase agreement of acquiring Dogecoin mining valuables.
Q) Should one invest in Dogecoin?
Well, this question will be answered with the help of the following essential points :
1. Tentative and abstract investors must pay heed to these two companies as Dogecoin mining might be a robust investment for companies hoping to cash in on the massive, famous, and meme-driven revenue boost up.
2. Risks are investing in Dogecoin according to short reports, yet tentative investors must consider Dogecoin. Why? Because Ebang also showcases bold praise towards Dogecoin, and you know Ebang is a company with strong demand for its crypto mining capacities.
3. There is not really any lifetime limit with the number of Dogecoins' existence. Furthermore, millions of new Dogecoins release now and then onto the markets. These two factors might result in a minor incentive hold-on to the cryptocurrency for the long term.
4. The gain in Dogecoin revenue witnessed in 2021 might not be sustainable over the longer term. How? Because whether the tips and donations by cryptocurrency culture will continue or not is an unknown factor.
Q) Should one buy Dogecoin?
Investors who had already bought Dogecoin to start 2021 are well rewarded. Yet, the constant add-on of new coins onto the market is seen to pressure the coin's value.
Thus, buying any type of cryptocurrency involves risk, including Dogecoin. The suggestion to this is always to buy a few coins only after familiarizing yourself with the current market system.
Like Ethereum, Solana is one proof-of-stake that runs a platform to build a Decentralized Finance (Defi) app. Last week (17th-23rd of May 2021), Solana increased with at least 35% on CoinGecko. The cryptocurrency boasts a 1,828% increase in 2020 to date on the FTX exchange. Solana exchange rate now stands at over $34 per coin. Analyst speculates that the cryptocurrency is comparable to Ethereum for its features except for the high fees of transacting. According to Sam Bankman-Fried, CEO of FTX exchange he stated that it is a combination of people being fed up with gas and comparing Solana with other decentralized non-Ethereum blockchains.
In a trial of at least three months, Dogecoin cryptocurrency recorded high returns of over 2,330%. The past week of April 21, 2021, Dogecoin rose to be the 12th largest digital token with a market cap of over $7.5billion. It is the same week bitcoin made losses amounting to at least 20% of its market value.
One of the factors that pumped up the Dogecoin monster rally last week is the trend on Reddit's SatoshiStreetBets chatroom between retail investors. Elon Musk also contributed to supporting the cryptocurrency rise on a few occasions last week.
Dogecoin came into existence back in 2013 after engineers Jackson Palmer and Billy Markus created it as a joke. Last week's record cracked the joke making investors focus on altcoins like Dogecoin.
Nano cryptocurrency runs on a consensus platform known to create an almost instant and feeless payment. In just seven days, the cryptocurrency increased by 35%, adding its returns to over 618%. The steep increase seems to be predominantly speculative.
An increase in gains across altcoins is a result of investors looking for more opportunities outside bitcoin. Nano currently exchanges with over $7 per coin.
In the past three months of 2021, stellar has made progress in price value. The momentum in prices came a day after Bitcoin recorded a drastic fall on mid-Friday before making a rebound. Stellar now accounts for 588% returns, triple what bitcoin made last week.
There are tangible reasons why the cryptocurrency made such gains. Apart from Elon Musk’s tweets, an incredible payment networking speed is an aspect that contributed to more returns. Stellar only speeds up a few seconds to approve a transaction, unlike traditional banking networks that spend days or weeks.
Another boost that might have attracted more gains is announced in early 2021 of partnering with the Ukrainian government to build a central bank cryptocurrency.
It is a decentralized automated market maker. Binance launched the decentralized application to use it as an exchange for Binance smart chain tokens. PancakeSwap is closely related to Uniswap available on the Ethereum network.
For the last one week, PancakeSwap increased returns amounting to 13% and grew by over 4000%. When compared to Ethereum's high transaction fee, investors have gone for alternatives like decentralized finance applications. That translated to the increased usage of cryptocurrencies like pancake Swap. Today, PancakeSwap exchanges coins at a rate of $25.
One of the events that stand out in Cardano cryptocurrency was last week. Last week's returns to at least 766%. The launch of Shelley accelerated the rise since it is designed to increase the number of nodes on the participant running network.
More nodes mean well decentralized and upscale security on the Cardano network. Since its launch in July 2020, Cardano has recorded an average of 2,000 daily transactions. Investors accelerated the gain after the establishment of the blockchain reinvestment project.
Meanwhile, Cardano seems to get a lift from Grayscale, a digital trust management company that partnered to make a Cardano trust. Although the partnership is different from Grayscale Bitcoin Trust, it will be good news for the Cardano investors.
Maker is a cryptocurrency that mirrors Ethereum's network. It is a well-known application dealing with stablecoins known as DAI. The coin is stable against the USD. Still, Maker ensures that underlying dollars represent the stablecoins in a user's bank account.
The Maker uses Ether as collateral to ensure flawless and automatic coding with the bank account. On last week's rally, Maker recorded an increase of over 22% that adds up to over 592% returns. Today, Maker's exchange is worth $4,241 per coin.