Dogecoin is not the biggest cryptocurrency. However, its recent 400% explosion in value is catching investors’ attention these days. The sudden increase in market value has jacked up Dogecoin’s worth to $40 billion. Bitcoin continues to lead the way in cryptos. In what started out as a joke several year’s back, Dogecoin is now a Top 10 crypto brand. It was based on the “Doge” meme, which was popular around eight years ago. The brand’s trademark portrays a Shiba Inu dog. It is multicolored with Comic Sans-font text.
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Software engineers’ Billy Markus and Jackson Palmer invented the dogecoin as a “fun” alternative to bitcoin. Since that point, it carved out its own unique following among the crypto online community.
The overall growth of this crypto is not the main concern. The speed in which it jumped to the $40 billion level is. The final $20 billion in market worth took place in a span of just 24 hours. The token’s value doubled to 32 cents in trading on Friday, April 16.
Along with cryptos in general, the value of dogecoin has been highly volatile over the years. It remained in the wings during bitcoin’s historic rise going back to September of last year. That all changed earlier this year. The Reddit group called SatoshiStreetBets had a major impact on the token’s standing in the crypto industry.
The group’s goal was to pump up the value of dogecoin. So far their efforts have been extremely successful. Maybe too successful for certain investors. As of Friday’s record price, Reddit users made note of the tremendous gains. One user posted a picture of their dogecoin holdings. This was placed on the Robinhood investing app with the accompanying text:
“Hey guys I just became a Dogecoin millionaire.” The account had a balance of $1,081,441.29.
Another big impact on the dogecoin rally was Coinbase going public. This is the most popular US-based cryptocurrency exchange. The company went public of Wednesday, April 14. It briefly topped $100 billion in market cap as a landmark event in the crypto industry.
This also had a big impact on the market value of bitcoin. This crypto set a new record by topping $64,000 in Thursday trading. The entire crypto universe experienced major gains during the previous week.
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Tesla CEO Elon Musk has been a primary figure in the crypto industry in recent years. He has also received credit for helping dogecoin reach these new heights. He has made several different tweets specifically about this crypto.
One rather cryptic tweet stated, “Doge Barking at the Moon.”
Musk has also gone on record as saying that dogecoin is his “fav” cryptocurrency. He has also called it “the people’s crypto.”
As a show of support for cryptos in general. Musk’s car company Tesla purchased $1.5 billion of bitcoin earlier in the year.
Investors have grown concerned with how easy the markets for cryptos can be moved by simple promotional efforts. This could produce a speculation bubble than can easily burst.