Dogecoin reaches all-time high, Cardano lands in Africa
Dogecoin going beyond the moon Well, the Internet’s favorite ‘meme coin’ has done it again. Reaching an all-time high of 0.74 US dollars on 9.
Dogecoin going beyond the moon
Well, the Internet’s favorite ‘meme coin’ has done it again. Reaching an all-time high of 0.74 US dollars on 9 May, dogecoin has experienced a 164% growth from its opening price at 0.28 cents on 27 April.
There is now stronger evidence of a consistent price pattern, at least when evaluating the coin using technical analysis. New all-time highs and a weeks’ period of consolidation have appeared again and again. It seems that dogecoin holders are more common than what we previously had thought.
Lacking sufficient price data before, we have assumed that very few people are confident enough to hold dogecoins for the long term. The cheap coin is among the best targets for scalpers who rely on Internet mania as fuel for the herd-driven price pumps. If that were true, however, we would see dogecoin failing to reach a substantial support level.
Yet, after keeping track of its price for many more weeks, we did see a pattern that is also consistent with bitcoin — higher lows after all-time highs. For example, when dogecoin appreciated 100% on 16 April up to 45 cents, the coin price floated downwards towards the 22 cents level (down by 51%).
This was then followed by a 4-day consolidation at the 26-28 cent level, before a doji candle on 27 April marked the beginning of another bullish rally. An overview of the daily chart reveals a steady staircase pattern.
Is it going to continue to go up?
Technical analysis seems to confirm a healthy and strong bullish trend that has not weakened since early 2021. Fundamentally speaking, dogecoin is similar to bitcoin in the way that both coins have garnered so much attention and love from the crypto community worldwide — in other words, dogecoin is a good ‘brand’.
Compared to bitcoin, dogecoin is also a more efficient P2P network in terms of transaction speeds, in addition to using a less energy-intensive mining process that better accommodates small transfers.
Historically, dogecoin has been used in several charity events in which the original creators themselves were involved. The Internet culture has been successfully holding onto the story, confidence, and value of dogecoin for almost 8 years now. In Internet timescale terms, that is already a long time — if this were just a fad, it would have died out in a few months.
Some important facts to consider
Serious crypto investors would suggest that dogecoin is something we can hold onto for fun, as it is risky to hold in the long term. Here are some of their reasons:
- A single wallet owns 28% of the total supply of dogecoin. We can’t know for sure who this is, but some had suggested it is the trading platform Robinhood whose wallet takes custody of dogecoins for thousands of its users.
- 11 of the largest dogecoin wallets own 46% of the total supply of the meme crypto. This makes dogecoin less decentralised than other coins of a similar market cap.
- Elon Musk, a well-known dogecoin fan, said that he can’t fully support (perhaps he meant by holding in large quantities of) dogecoin unless these wallets release the coins for equal distribution.
Dogecoin does have a future as a special coin to hold among Internet users who share a culture. But for now, it is a good short-term investment and akin to holding a lottery ticket.
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Cardano to use blockchain technology to streamline education in Ethiopia
Blockchain can do so much more than producing a tradable crypto commodity, and Input Output Hong Kong, one of the foundations that oversee Cardano’s developments, is about to prove it.
Clarifying the rumours about the blockchain company’s direction, the Ethiopian Education Minister confirmed on 26 April that the government will be working with IOHK to implement a national blockchain-powered database that tracks students’ academic performances as well as tracking the performances of the country’s schools and universities.
Working with Atala Prism that uses the Cardano network, the Ethiopian government hopes that the tamper-proof education records will improve the quality of education in Ethiopia. Furthermore, an increased transparency in the Ethiopian education sector may help eradicate fraudulent certifications.
The news caused a 12% jump in the price of ADA, the blockchain network’s native currency, upon the release of the official statement. Since then, ADA has been on a bullish rally to its most recent all-time high last week, at 1.77 USD per ADA.
Many enterprises have or are taking advantage of blockchain technology to streamline their processes and services. Governments are also racing to develop their own central bank-issued digital currency (or CBDC) using blockchain. However, it appears that Cardano is the first to apply blockchain technology on a national scale to secure the integrity of data within the education sector.
Ethiopia is not the only country to become an experimental ground for blockchain infrastructure. In Tanzania, it is estimated that 700 million Tanzanian citizens have no access to the Internet. IOHK was set to invest in solar-powered Internet infrastructure starting from the island of Zanzibar with payment also to be made in ADA.
Invest today: Click here to buy Cardano (ADA).
Backing up cryptocurrency with life-changing projects
Generating real economic value has been the core vision of IOHK. Cardano’s founder, Charles Hoskinson, who was also a core founding member of Ethereum, explains on Twitter what Cardano proposes to do:
Cardano is an open platform that seeks to provide economic identity to the billions who lack it by providing decentralized applications to manage identity, value and governance– Charles Hoskinson (@IOHK_Charles) August 2, 2020
IOHK has also taken part in many projects that aim to improve education, supply chain, and research across the world. Collaborating with IBM, IOHK completed a series of research papers, commissioned by the European Union, on decentralised software updates.
BeefChain became part of the Cardano network, which aims to improve transparency in the food supply chain, ensuring that food commodities, especially meats, are sourced from responsible suppliers.
New Balance, an international shoe company, applies the same principles using Cardano to implement blockchain identities in authentic shoes, protecting customers from counterfeit products that flood the market.
Creating a different brand of blockchain
Cardano seems to be building a specific image that is different from other blockchains. Cardano’s slow but steady development has made many fans wondering whether or not Cardano will develop fast enough to eclipse Ethereum (to become a so-called Ethereum killer).
However, given that Cardano has not even developed capabilities for smart contract implementation until the Goguen era ends, it seems that the network is in no rush in its development.
After all, it is probably unlikely that Cardano intends to overshadow Ethereum, given that the latter is already winning in network effect. Market capitalisation is no competition it seems for Cardano. When looking at the future value offered by the blockchain, it matters not whether it’s behind dogecoin.
Market capitalisation may be a useful indicator for traders, but a more sustainable growth driven by fundamental reasons like the nationwide projects being done by Cardano may prove to be better for long-term investors.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated October 18, 2022