Based on the “Doge” meme and started as a “fun” alternative to Bitcoin, Dogecoin’s value has risen phenomenally this week– adding around $19.9 billion in the last 24 hours, and now valued at $34 billion.
On Friday in the US, the digital token was valued at 28 cents, more than double its value a day before. A top-10 crypto token, it has seen a seven-day rise of 300%. (Image source: Wikimedia Commons)
Just as the virtual currencies Bitcoin and Ethereum have surged in value this week, so has Dogecoin — a cryptocurrency started in 2013 as an internet parody.
Based on the “Doge” meme Dogecoin’s value has risen phenomenally this week, adding around $19.9 billion in the last 24 hours, and now valued at $34 billion, according to CoinGecko, a market data site.
On Friday in the US, the digital token was valued at 28 cents, more than double its value a day before. A top-10 crypto token, it has seen a seven-day rise of 300%.
What is Dogecoin?
According to CNBC, the digital token was created in 2013 by software engineers Billy Markus and Jackson Palmer as a faster but “fun” alternative to Bitcoin. It was started as a satire on the numerous fraud crypto coins that had sprung up at the time, and takes its name and logo from a Shiba Inu meme that was viral several years ago.
Unlike Bitcoins, whose maximum possible number is fixed at 21 million (a figure that is estimated to be reached by 2040), Dogecoin numbers do not have an upper limit, and there are already more than 100 billion in existence.
When the crypto coin first took off, the online community that was backing it invited attention by supporting unconventional causes, such as sponsoring Jamaica’s bobsled team at the 2014 Winter Olympics. Also that year, the Dogecoin community gave $55,000 worth of the digital token to a Nascar driver in the US.
So, what is behind Dogecoin’s rise?
The main reason believed to be behind Dogecoin’s meteoric surge is the same that has propelled the value of Bitcoin and Etherem– this week’s listing of Coinbase, the most popular virtual currency exchange in the US.
Coinbase’s market cap briefly hit $100 billion after it went public on Wednesday, and the values of Bitcoin and Etherem touched $64,000 and $2,500, respectively, during the week. Dogecoin is said to be a part of this frenzy.
Doge” also has an ardent supporter in Tesla CEO Elon Musk, who frequently tweets have added to the digital token’s mania. Musk had once changed his Twitter bio to “Former CEO of Dogecoin.” Other celebrities, including rapper Snoop Dogg and rock musician Gene Simmons, have also promoted it on social media.
Another reason behind its current success is said to be a Reddit group called SatoshiStreetBets, where members built up an enthusiasm for the cryptocurrency in a manner similar that led to the rise of GameStop earlier this year. The group’s name refers to Satoshi Nakamoto, the screen name of the person or group of persons behind Bitcoin.
Why some are concerned
Some investors have expressed fears that Dogecoin’s rise would lead to a bubble, given that buyers do not see any meaningful value in the digital token, and are only trading to make money while the price keeps going up.
Without having any intrinsic value such as land or gold, cryptocurrencies are considered highly volatile, and may crash as fast as they can rise, experts say, making them susceptible to sudden scares as well as manipulation by small groups who often hold large numbers of the virtual currency in circulation.
Dogecoin spikes 400% in a week, stoking fears of a cryptocurrency bubble
Dogecoin is a cryptocurrency based on the “Doge” meme, which rose to popularity in late 2013. It started out as a joke.
Now, defying all odds, dogecoin is worth $40 billion, and its price has risen by a whopping 400% in the last seven days.
Dogecoin’s skyrocketing price has led to worries of a potential bubble in the cryptocurrency market.
Dogecoin started out as a joke. Now it’s a top 10 digital currency worth $40 billion.
The cryptocurrency is based on the “Doge” meme, which rose to popularity in late 2013. The meme portrays a Shiba Inu dog alongside nonsensical phrases in multicolored, Comic Sans-font text.
Created in 2013 by software engineers Billy Markus and Jackson Palmer, dogecoin was intended to be used as a faster but “fun” alternative to Bitcoin.It has since found a growing community online.
And now, defying all odds, dogecoin has a total market value of more than $40 billion, according to crypto market data site CoinGecko, adding over $20 billion in the last 24 hours. The digital token reached an all-time high of 32 cents Friday morning, more than doubling in price from a day ago.
‘I just became a Dogecoin millionaire’
It’s not the first time dogecoin has seen a wild climb. Like many cryptocurrencies, it has a tendency for volatile swings in price. It’s been fairly off the radar since then. But earlier this year, dogecoin skyrocketd on the back of enthusiasm from a Reddit group called SatoshiStreetBets.
Similar to the subreddit WallStreetBets, which shares at the start of 2021, SatoshiStreetBets aims to pump up the prices of cryptocurrencies.
Dogecoin has been climbing again in the past week, hitting 10 cents a coin for the first time on Wednesday. It’s risen by a whopping 400% in the last seven days.
On Friday, a Reddit user posted a picture of dogecoin holding on the Robinhood investing app.
“Hey guys I just became a Dogecoin millionaire,” the user said, showing a balance of $1,081,441.29 in their account.
Why investors may want to take dogecoin seriously
Dogecoin has attracted a following among users of Robinhood. On Thursday, the U.S. online brokerage said there was a “major outage” in its crypto trading feature after facing “unprecedented demand.” The feature is now back online, Robinhood said.
Some reports have attributed the latest dogecoin rally to support for the meme-based token from Tesla CEO Elon Musk. He has made several tweets about dogecoin, which in turn has helped push up its price.
On Thursday, Musk posted a cryptic tweet saying “Doge Barking at the Moon,” likely in reference to the popular Crypto Slang “to the moon.”
The billionaire has called dogecoin his “fav” cryptocurrency and “the people’s crypto.” Musk has also come out as a supporter of Bitcoin, with his electric car company Buying 1.5 Billion Revenue Of earlier this year.
But his tweets have worried some investors, given their apparent ability Move Market. Some bitcoin investors, for instance, have sounded the alaram about Musk’s dogecoin tweets. Nic Carter, co-founder of Castle Island Ventures, warned retail investors “are going to lose money on dogecoin,” calling it a “vehicle for speculation.”
Bubble concerns
Dogecoin’s skyrocketing price has led to worries of a potential bubble in the cryptocurrency market. Some investors Already View Bitcoin — the world’s most popular digital coin has more than doubled since the start of 2021.
“Dogecoin’s rise is a classic example of greater fool theory at play,” David Kimberley, an analyst at U.K. investing app Freetrade, told CNBC.
“People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up, and then they can sell off and make a quick buck.”
But, Kimberley added, “when everyone is doing this, the bubble eventually has to burst and you’re going to be left shortchanged if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.
How To Create Dogecoin Account .
Download The Wallet. Go to the Play Store and search "Dogecoin Wallet" on the Play Store, or click the "Get it on Google Play" button. ...
Launch The Wallet. On the same page, press the "Open" button. ...
Use Your Wallet! Now you have a full Dogecoin wallet in your hand!
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