Dogecoin (DOGE) hit a new all-time high. On April 16, in anticipation of DOGE day, the cryptocurrency ripped to the north more than 200% for the week, reaching an all-time high of $0.45 and settling in at $0.32 by the close.
On April 20, Doge Day celebrations brought a new all-time high. Closing at $0.42, there was a lot to celebrate. Dogecoin is having an incredible run. It is up 600% for the month, and it is up an astounding 18,000% for the year.
Read More »Undeterred, supporters are cheering for the crypto to break $1.
Doge’s wild ride broke Robinhood
Demand for Dogecoin was so fierce it overwhelmed Robinhood Markets’ digital platform. Online traders accused it of slowing down trades of Dogecoin. They speculated that only funded accounts were being allowed to buy the coin.
In response, Robinhood tweeted: “No, we didn’t place restrictions on $DOGE trading. This is false information.”
Later, the electronic trading company said that they were “experiencing issues with crypto trading.” By the end of the day Friday in a blog post, Robinhood reported that the site, had indeed, crashed.
Robinhood is the trading platform that got noticed when GameStop (GME) and AMC (AMC) experienced high volatility at the start of the year.
DOGE is now ranked in the top 10
Dogecoin is currently the eighth most valuable cryptocurrency. Cruising along with a $52 billion market cap, Doge is doing well.
It is doing so well it is outperforming several major banks. To put it in perspective, the Bank of New York, Lloyds, and Credit Agricole all trail behind in the low-$40 billion range.
Other coin rush contenders
Dogecoin has some distance to go before it can beat market leaders Bitcoin (BTC) and Ethereum (ETH). They have been doing well for years. Riding the same wave, these companies are seeing all-time highs as well.
Other major contenders are Binance Coin (BNB) and Tether (USDT). Tether has an all-time high of $1.32 with a $50 billion market cap. Having said that, Dogecoin briefly beat out Tether.
Binance is a serious player. It ranks third with a market cap of about $90 billion.
The leader of the pack
Bitcoin blazes to the front of the digital currency wildfire with a $1 trillion market cap. It has seen some wild swings and a crash, but it seems to bounce back.
Bitcoin got to the party first. In 2009 it was created anonymously with blockchain technology. It is set up as a peer-to-peer platform to transfer payments instantly. Coins in the bitcoin system are based on a cut-off point of 21 million tokens, a limit meant to keep value stable. Recently, Bitcoin got a bump from Tesla. Musk announced this year that Teslas may be purchased with Bitcoin.
Dogecoin’s celebrity supporters
Elon Musk began touting the crypto at the beginning of the year. The Tesla (TSLA) founder tweeted this when Doge broke its trading record: “Doge Barking at the Moon.”
It was an apparent nod to the WallStreetBetters. In January, the Reddit board group gained major exposure. They boasted they would send Dogecoin “to the moon.”
Doge was a meme before it became a currency. The smiling mug of the internet’s favorite Shiba Inu is now the mascot meme of Dogecoin. The pup has endorsed NASCAR and 2014 Olympic athletes.
The adorable canine is not the only face of Doge
Besides Elon Musk’s playful endorsements, Snoop Dogg and Gene Simmons from KISS have also tweeted in favor of the Doge coin.
In a zany tweet on the 5th of February, Simmons anointed himself, “God of Dogecoin.”
Around the same time, Elon Musk tweeted out two references to the meme currency. He posted, “Dogecoin is the people’s crypto.”
He also couldn’t help tweeting, “Who let the Doge out.”
Two months later he said, “SpaceX is going to put a literal Dogecoin on the literal moon.” The tweet is silly and outrageous, perfect for April fool’s day.
What is Doge?
Doge first surfaced as a joke. Seven years ago, software developers Jackson Palmer and Billy Markus meant to satirize the growing interest in digital currencies with a mock crypto coin.
Instead, their antic created an opensource currency that has become valuable in real time.
Contrary to Bitcoin, Dogecoin is not limited to a ceiling. Without a lifetime cap, some are concerned it could become inflationary.
Not everyone is a Doge fan
Dogecoin is a risky investment. Some investors would say it is a gamble instead of a legitimate investment. The fact is, all cryptos are extremely volatile. Dogecoin is making news because of its volatility.
Caution is appropriate. Co-founder Markus said that the jump in value “doesn’t make sense.” He compared Doge’s exuberance to the GameStop and AMC volatility. If Dogecoin co-founder is skeptical, maybe investors should be too.
Market analysts are wary. The interest created by Musk and others may be hot now, but, according to Adam Zadikoff, COO of crypto wallet BRD, we may be seeing a “flash-in-a-pan thing that people are getting behind now.”
Zadikoff also told CNBC that bitcoin is a safer bet because of its 21 million ceiling. But he admits betting on Dogecoin might a fun ride. If you can sell quickly and make money fast, go for it. “The danger is you’re the last person holding the bag,” he said.
Other analysts like Susannah Streeter at Hargreaves Lansdown strongly urge investors to stay on the side of caution.
“As we saw with the GameStop frenzy earlier in the year, traders have once again adopted a game mentality, trying to propel the price higher using hashtags and rallying cries on internet forums,” Streeter pointed out.
Elon Musk appears to love the very games Streeter is talking about. The rocket CEO may have launched the Doge to the moon, but will it make a safe landing?
