A record-setting week has pushed the price of Dogecoin to an all-time high of $0.69 and promoting the currency to one of the 150 most valuable assets worldwide.
The Dogecoin and Crypto Rally Carries On
Dogecoin is shooting for the moon much like Tesla CEO Elon Musk’s ambitions are taking him into outer space. The once meme cryptocurrency has stolen a definitive march on Ripple, replacing it as the fourth largest digital asset and making headlines as the $DOGE hit an all-time high of $0.69 on Wednesday.
Back in January, WallStreetBets, a disruptor social media forum, called the coming of the Dogecoin, rallying its members to push the price to $1. With $0.69 on the horizon, and Dogecoin trading at a good $0.65 at the time of reporting, WallStreetBets may have been right after all.
In terms of net gains, $DOGE has led the way, ahead of Bitcoin, Ethereum, and Binance Coin, making for more significant gains over the past weeks. Some have suggested that Musk’s endorsement of the cryptocurrency has been a reason why it has skyrocketed, but then again, Musk has been equivocal about his support.
What Has Driven Dogecoin’s Success?
In the meantime, Dogecoin is now one of the 150 assets in the world in terms of market capitalization. While Musk’s tweets and upcoming Saturday Night Live segment have certainly have had their positive impact on the currency’s success, there have been more tangible signs of support.
Dallas Maverick boss Mark Cuban has allowed the team, and other of his business, to start accepting Dogecoin as a viable payment method. Oakland Athletics, an MLB franchise, recently held a sale of in-field tickets in Dogecoin, offering a 50% discount.
Creating real value will be the difference between Dogecoin proving a bust and a success. The previous growth spurts have resuscitated development efforts, offering hope that the currency may enjoy more worthwhile applications other than to prove that “it can be done.”
A Word to the Wisest
While the current market elation is justified, there are some signals that must not be ignored. For starters, the recent spike in Dogecoin activity is largely attributed to crypto whales, as noted by Cointelegraph earlier this week.
To put the numbers in perspective, Tuesday’s trade volume for Dogecoin was $58 billion or 70% more than that of Bitcoin, which saw trades to the tune of $34 billion. Another important metric to check out is the fact that only 92,000 transactions happened on the Doge blockchain as opposed to 304,000 on Bitcoin.
While Dogecoin’s price is surely tempting, especially for anyone who first purchased the currency when it was worth $0.01, there may be a day of reckoning. The staying power of Doge will have to do with something beyond Elon Musk’s mood.