Every dog has his day. For Dogecoin, the meme-based cryptocurrency and the “joke” rival Bitcoin, this day could be – April 20, 4/20 the meme ever.
Dogecoin, a small cryptocurrency until dogecoin mania swept the crypto world this year, was propelled into the top ten cryptocurrencies and a staggering $50 billion market cap — with the help of Tesla billionaire Elon Musk. For comparison, Bitcoin currently has a total value of just over $1 trillion, while the other top five digital coins such as Ethereum and Ripple’s XRP are worth $240 billion and $55 billion respectively.
The price of Dogecoin has already surged an astonishing 15,000% to 40 cents since the massive rally of bitcoin and cryptocurrencies began in October of last year — and this year the Dogecoin community led by the meme hopes to reach all-time highs at $1.
He says, “One dollar is definitely possible.” Alex Krueger, a cryptocurrency trader and economist speaking on Telegram adds such an increase “not much more to something volatile”.
“It’s an absolutely fantastic dynamic where a market that is always hungry for a strong narrative to control price movements has settled on a meme economy for outperformance,” says Matti Greenspan, a crypto trader and founder of market analysis group Quantum Economics, via Telegram.
Dogecoin price has soared this week as excitement builds ahead of April 20th, adding 20% in the past 24 hours and hovering around all-time highs.
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A user of a Telegram group of 45,000 cryptocurrencies wrote, called SatoshiStreetBets, which is named after the mysterious Bitcoin creator Satoshi Nakamoto and the Reddit community WallStreetBets who sent GameStop
“The $50 billion Dogecoin removes any doubt that the current crypto boom is a classic speculative mania,” Glenn Goodman, author of The Crypto Trader Glenn Goodman, says via Twitter DM. “I love speculative mania, I make money trading volatility, but let’s not pretend that this is any kind of rational price discovery process, for a doge or any other cryptocurrency.”
Elsewhere, the broader bitcoin and cryptocurrency market has struggled since a surprise sale of $300 billion over the weekend. Bitcoin price is down about 5% in the past 24 hours, while the price of five other cryptocurrencies such as Ethereum and Ripple’s XRP have also fallen from their recent highs.
Meanwhile, bitcoin and crypto-friendly brands are jumping on Dogday as an opportunity to connect with customers. Newegg, a technology-focused online retailer, has today begun accepting dogecoin as payment – seven years after it began accepting bitcoin.
Andrew Choi, senior brand manager at Newegg, said in a statement along with an announcement.
However, while Bitcoin and cryptocurrency analysts see the price of Dogecoin rising in the short term, they also warn of a drift away.
“Most people will lose money, as always,” Krueger says. “That’s how trade mania works. The majority usually come out on top.”
“It’s about people jumping blindly into the ‘next big thing,'” Goodman added.
“The true value of each cryptocurrency will appear in the long run, just as we see it in the stock market, but in the short term, the market is working on a pure ‘hypium’. By all means, enjoy trading the Dogecoin, but I hope people will care, people who are risking too much will lose. Lots of money too quickly.”