The doge worth 88 billion dollars: A case study of Dogecoin

Abstract

In the modern financial system, the ability to create money is in the hands of a few central institutions. Blockchain networks, and by extension cryptocurrencies, were created with the promise of giving that power to users. The most well-known example of a blockchain technology achieving such decentralization is Bitcoin, but its popularity has arguably been matched by an alternative-currency named Dogecoin. Unlike other cryptocurrencies, which have marketed themselves on differentiating technical features, Dogecoin’s allure likely stems from its cultural roots as a meme. Where cryptocurrency is typically regarded as a difficult topic to grasp, the introduction of Doge’s (2013) most popular meme, into the crypto-space increased crypto’s accessibility to new participants. Consequently, Dogecoin exists in two economies: the financial economy and the cultural meme economy, with the latter having unprecedented tangible impacts on the former. Dogecoin’s unique cultural significance provides an example of how blockchain can succeed in promoting alternative money systems. At its peak in 2021, Dogecoin achieved a market capitalization of $88 billion. Where analysis of the Dogecoin phenomenon is lacking in the current literature, we will fill that gap with a case study of Dogecoin. By studying Dogecoin as a combination of money and meme, we can further our understanding of how to better promote social finance initiatives through the virality of memes.