Dogecoin prices hit an all-time high on Tuesday, with a market capitalization of more than $ 50 billion, after fans of social media used hashtags to fuel a concentration on meme-based cryptocurrency.
Dogecoin, which launched as a satirical critique of the 2013 cryptocurrency frenzy, topped 8,000% of prices this year and surpassed the most widely used cryptocurrencies, such as Tether, to become the fifth largest currency.
While Dogecoin, whose logo includes a Shiba Inu dog in the center of the meme, represents only a fraction of the $ 1 trillion worth of bitcoin, it can be exchanged for more popular cryptocurrency exchanges and commercial applications.
“The Doge rally represents an interesting convergence,” said Diana Biggs, CEO of cryptocurrency company Valor, after Dogecoin’s price multiplied by five in the past week to a record $ 0.42. according to CoinMarketCap.
“A meme coin created as a joke for early adopters of cryptography whose community found this kind of fun, with now a new generation of retail investors for whom memes are a native language,” added Biggs.
Dogecoin fans used the hashtags #DogeDay and # DogeDay420 to post memes, messages and videos on Twitter, Reddit and TikTok, referring to the informal party on April 20 to celebrate cannabis, marked by smoke and parties in the Street.
“GIMME THOG DOGECOIN LAMBO !!! #DogeDay” tweeted, referring to the Lamborghini car popular in cryptographic culture.
ONLINE TRADE
The rise of Dogecoin has come amid an increase in online stock trading and cryptocurrency by retail investors, trapped at home with extra money due to the COVID-19 pandemic. It has not coincided with a growth in the use of currency for payments or trade.
The same trend has driven a boom in the use of online trading apps like Robinhood, and has also fueled the social media-driven rally of GameStop Corp (GME.N) shares facing investors. retailers to hedge funds earlier this year.
“It’s an extension of the same phenomenon that has led to valuing Tesla’s shares far beyond fundamentals and, more recently, to reducing GME (GameStop),” said Ajit Tripathi, the start-up’s institutional head of business. decentralized financial Aave.
Like other cryptocurrencies, the price of Dogecoin is heavily influenced by social media users, including the head of Tesla (TSLA.O), Elon Musk, the cryptocurrency’s tweets in February sent its price up more than 60%.
“If this goes as planned and everyone, including Mr Musk, goes ahead and only pours money into Doge on April 20, at the same time, Doge will reach prices that were not even conceptual at the time,” a TikTok user said. in a video promoting the currency.
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