Dogecoin, the ‘joke’ cryptocurrency, has seen a 100% rise in the past seven days, and its value has hit an all-time high of $78 billion USD. The jokingly introduced crypto is now worth nearly double of Twitter and Ford, to put things in perspective. What started as a joke is now being taken seriously across the globe.
The rapid rise in Dogecoin’s value has increased its rank amongst cryptocurrencies, and the meme-based crypto is now the fourth biggest digital coin to exist. Statistics show that Dogecoin managed to overtake Ripple (XRP) on Wednesday, as it continues to rise in value.
However, critics have stated that the rapid and immediate rise in Dogecoin’s value has more to do with a temporary hype. People are suddenly attracted to ‘the next big thing.’ Many critics have suggested that Dogecoin might not prove to be profitable, and those who have invested in the crypto might be in for a disappointment.
Elon Musk’s appearance on SNL plays an immense role in the ‘Dogecoin craze’
The most recent and rapid spur in Dogecoin’s value is a result of Elon Musk’s announcement of hosting Saturday Night Live on the 8th of May, along with the title ‘The Dogefather.’ The two words alone were enough to spike people’s interest, and a huge population immediately began purchasing the cryptocurrency.
Multiple sources suggest that the primary reason people were inclined towards purchasing Dogecoin within moments was that they didn’t want to miss out on the potential opportunity of reaping profits through investing in it early on. Many immediately connected the event with Elon Musk’s tweet regarding Bitcoin, which led to an immediate and shocking rise in Bitcoin’s value.
Following Elon Musk’s hint of promoting Dogecoin on SNL, the influencer and crypto investor David Gokhsthein tweeted, “So Elon Musk is putting little clues out there about $DOGE?”. Similarly, many crypto investors and influencers further promoted the news, playing a part in furthering Dogecoin’s hype.
Tyler Winklevoss, the CEO of Gemini, stated that ‘Dogecoin is no joke,’ as Gemini added Dogecoin to its exchange. Noting that Tyler Winklevoss has made a fortune worth billions of dollars through Bitcoin investments, people have taken his word for Dogecoin’s value seriously.
Two of the largest crypto trading platforms, Gemini and eToro, added Bitcoin to their exchanges, further adding to its’ name and fame’. The multi-asset brokerage eToro announced that it’d be supporting the cryptocurrency on Monday, and there was an evident spike in Dogecoin’s price by Tuesday. After all, the new listings have given the access to exchange Dogecoin to 20 Million users across the globe.
The multiple events have led Dogecoin to rise over 9000% over the previous year, and many investors are hoping that it’ll continue to rise. Analysts are hopeful that Dogecoin and Ethereum could be the next big thing, leaving bitcoin behind. In fact, crypto experts believe that Dogecoin’s price will further rise after Elon Musk appears on Saturday Night Live on the 8th of May.
