The digital currency with the dog logo: Started as a joke, now has a capitalization of 40 billion USD, is in the top 10

Tram Ho

Doge is a photo of a Shiba Inu dog with nonsense phrases written in a colorful Comic Sans font. Meanwhile, Dogecoin was the product of software engineers Billy Markus and Jackson Palmer in 2013. The coin is intended to be used as a faster but more enjoyable alternative to Bitcoin. Since then, it has had an online community to grow.

Along with the explosion of digital money, Dogecoin not only confirmed itself but also participated in the group of 10 largest digital currencies in the world with a market value of more than 40 billion USD. In the past 24 hours alone, Dogecoin has doubled in price. As of the morning of April 16, the value of a Dogecoin reached 32 cents, 2 times more than the previous day.

 Đồng tiền số mang biểu tượng con chó: Bắt đầu như một trò đùa, giờ đây vốn hóa đạt 40 tỷ USD, nằm trong top 10 - Ảnh 1.

“I just became a Dogecoin millionaire”

This is not the first time the Dogecoin price has exploded. Like many other cryptocurrencies, it has a very strong tendency to fluctuate in price. In 2018, Dogecoin and many other popular digital currencies increased together, but no one noticed it except for a small group. Earlier this year, Dogecoin suddenly soared thanks to the enthusiastic push from a Reddit group called SatoshiStreetBets.

Similar to WallStreetBets, which generated the insane surge of GameStop shares in early 2021, SatoshiStreetBets focused on the appreciation of cryptocurrencies. Dogecoin is one of the names chosen. It hit 10 cents on April 7 for the first time last week before rising 400 percent in just seven days.

On April 16, a Reddit user posted a photo of his Dogecoin holding on the Robinhood investment app and commented: “Hey guys, I just became a Dogecoin millionaire.” This user also showed off a display balance of $ 1,081,441.29 in his account.

Decoding the big gain of Dogecoin

First of all, Coinbase is offering the US stock exchange. America’s most popular virtual currency exchange officially went public on April 14. It quickly reached a market cap of $ 100 billion during what has been described as critically important for cryptocurrencies.

The excitement of Coinbase’s listing caused the price of Bitcoin and Ether to skyrocket. Bitcoin hit a record $ 64,000 per coin on April 15 while Ether also quickly hit $ 2,500 for the first time on April 16. Dogecoin is no exception to the frenetic interest of crypto investors.

The digital currency has also attracted a large number of Robinhood app users. On April 15, the US online brokerage company said there was a “big problem” with its cryptocurrency trading feature when the demand of users was “unprecedented”. However, Robinhood has fixed the bug and the feature is back to normal.

Some reports have suggested that Dogecoin’s rally is related to Tesla CEO Elon Musk. This well-known billionaire has made a number of posts on social media about Dogecoin and this has contributed to driving the price of the coin to soar.

 Đồng tiền số mang biểu tượng con chó: Bắt đầu như một trò đùa, giờ đây vốn hóa đạt 40 tỷ USD, nằm trong top 10 - Ảnh 2.

Elon Musk posted this picture on Twitter with confusing text: “Doge Barking at the Moon”. However, many argue that this is Musk’s way of referring to the Dogicoin price to “go to the moon”.

On April 15, Musk posted a puzzling tweet “Doge Barking at the Moon”. As CNBC explained, this phrase is likely to be the popular cryptocurrency slang, implying they will “go to the moon”.

Musk has also called Dogecoin his favorite digital currency and everyone’s cryptocurrency. Recently, Musk has also been one of the ardent supporters of Bitcoin. In addition to pouring money into the digital currency, Musk also allows customers to buy Tesla cars with digital currency.

However, Musk’s message line worries many people because of its terrible impact on the market. For example, some Bitcoin investors have been ringing alarm bells about Musk’s messages with Dogecoin. They assume that retail investors will lose money by throwing at Dogecoin while calling it a “speculative vehicle”.

Concern about bubbles

Dogecoin’s dizzying rally continues to exacerbate concerns about potential bubbles in the crypto market. Some investors see Bitcoin as a speculative bubble. The world’s largest cryptocurrency by market capitalization has more than doubled since the start of 2021.

David Kimberley, an analyst at investment app Freetrade, said: “Dogecoin’s rise is a prime example of the public’s sentiment. People buy digital money not because they think it’s valuable, but only. because they hope others will buy, push the price up later so they can sell off and make money quickly. ”

However, Kimberley also warns that when everyone invests in this fashion, the bubble will eventually burst and most players will be empty-handed if they don’t get out of stock in time. The worst part of the problem is that no one knows when the bubble will burst.

“With cryptocurrencies, there is usually a small group of players holding the majority of the coins in circulation. That means that only one of them sell off their assets, the entire market will melt. smoke, “Kimberley stressed.

Share the news now

Source : Genk