After social media fans used the hashtag to fuel a rally in meme-based cryptocurrencies, DogCoin prices hit an all-time high with a market capitalization above $ 50 billion on Tuesday.
The 8,000 percent price increase this year has seen Dogcoin launched as a sarcastic critique of the 2013 cryptocurrency frenzy ahead of more widely used cryptocurrency like Teether to become the fifth largest coin has left.
While DogCoin, whose logo features a Sheeba Inu dog at the center of the meme, represents only a fraction of Bitcoin’s $ 1 trillion value, it can be traded on crypto exchanges and the more popular mainstream trading app.
“The Doge rally represents an interesting convergence,” said Diana Biggs, CEO of Dynamics, with Dogcoin prices rising more than five times in the past week to a record 42 cents, according to Coinmarketcap.
Biggs said, “Designed as a joke coin for early crypto adoption, whose community has found such a thing to be fun, now a new generation of retail investors for whom mem is a native language , “Said Biggs.
Dogcoin fans used the hashtags #DogeDay and # DogeDay420 to post memes, messages and videos on Twitter, Reddit and Tickcock, referring to the unofficial April 20 holiday to celebrate cannabis marked by smokers and street parties. was done.
“GIMME THAT DOGECOIN LAMBO !!!” # Dogde One tweeted, Referring to Lamborghini cars popular in crypto culture.
The COVID-19 epidemic has led to an increase in Dogcoin amid increased online trading of stocks and cryptos by retail investors stranded at home with excess cash. This does not coincide with the increase in the use of coins for payment or in commerce.
The same trend has fueled an upsurge in the use of online trading apps such as Robinhood, and has also fueled a social-media-driven rally in Gametop’s stock that pits retail investors against hedge funds earlier this year.
“This is an extension of the same phenomenon that has made Tesla stock well-priced beyond the basics and more than the recent GME (Gametop) brief squeeze,” said Ajit Tripathi, head of institutional business at the decentralized finance startup Away Said quoting
Like other cryptocurrencies, the price of DogCoin is heavily affected by social media users, including Tesla chief Elon Musk, whose tweets on cryptocurrency increased its price by more than 60 percent in February.
“If it goes according to plan and everyone, including Mr. Musk, goes ahead and just pours the money into the Doge on April 20, once the Doge will arrive at prices that were not even ideological in origin,” a Tiktok user. Said in a video Coin promotion.
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