In a week where bitcoin hit yet another record high and coinbase went public with a bang, Dogecoin has also once again been sneaking into the headlines.
Just as it did back in February following some quirky and oddball Twitter endorsements from Elon Musk, Dogecoin has been on the move again. In doing so, it has broken the record high it reached after the Musk drive at the start of the year.
The coin, which lies somewhere between being a meme coin and a real cryptocurrency, finished trading on Wednesday at a new record high of 14 cents. As a result, Dogecoin briefly broke into top 10 crypto assets by market capitalization on Thursday (April 16). It’s previous record high from February was somewhere around the 8 cents mark.
Coinbase going public rallied a lot of investor interest, which is why almost all major cryptocurrencies, including bitcoin and Ethereum, also reached new record highs in price. Few would perhaps have expected a meme currency like Dogecoin to spike in correlation with the Coinbase market debut – especially as it isn’t even listed as a tradable currency on the San Francisco crypto exchange.
Although somewhat coincidental, Dogecoin’s latest spike is once again thanks to social media, most notably Twitter. Previous leading figures and companies to come out in support of Dogecoin over the social media platform have included Elon Musk, Tesla and Mark Cuban, owner of the Dallas Mavericks basketball team.
Rather than being driven by prominent financial figures or celebrity figures, this sudden Dogecoin spike was actually started by a lesser known Twitter user by the name of Ryan Negri. Negri, a prominent advocate of all thing crypto, joked about the silence of Dogecoin’s famous Twitter advocates.
Having called out Musk, Tesla and Cuban, only the later bit the bait initially to please the Dogecoin fans and spark the spike. He boasted of his sale of Doge merchandise and “We will never sell 1 single DOGE ever. So keep buying!” sparking a flurry of Dogecoin buying and Twitter meme activity. Musk eventually got in other action and was retweeted by Negri, however the cryptic Tweet was quickly removed.
Of course, no price hike in anything considered “meme trading” could pass by without being the subject of discussion on the Reddit thread r/WallStreetBets. Naturally, the memes and banter started flowing as users egged each other on to buy the meme coin, while others boasted they’d never sell.
No, just like Dogecoin spikes before it, this was another spike driven by social media hype. The moment has not yet arrived where Dogecoin fully crosses over the boundary from being a meme coin to a bonafide crypto – it still lies somewhere in between. For now though, unlike the GameStop craze and meme stocks, the sporadic Dogecoin frenzies largely remain harmless fun.