Elon Musk, the billionaire founder of Tesla, called Dogecoin his “favorite” cryptocurrency. In the last few days, the price of Dogecoin has gone through the roof.
So far this week, the price of dogecoin has doubled, reaching a new high of around 10 cents and beating bitcoin’s recent sharp rise.
Musk’s funny tweets about dogecoin have helped the “joke” bitcoin rival rise by 6,000% in the last six months. This morning, he sent out a GIF of a laughing dog, which pushed up the price of Dogecoin. Shiba Inu is the dog that dogecoin was modeled after.
Dogecoin has moved into the top ten cryptocurrencies, according to CoinMarketCap. This is because it has gained 120% this week, making the 130 billion dogecoin tokens in circulation worth about $12 billion.
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Bitcoin, on the other hand, is by far the most valuable cryptocurrency, with a market capitalization of almost $1.2 trillion after its huge bull run so far this year.
“Today’s biggest winner is dogecoin, which has risen about 30% since the morning and briefly topped 9.5 cents per coin,” Mati Greenspan, founder of the market research firm Quantum Economics, said in an email note on Tuesday. “It looks like memes are running this market in every way.”
After starting the year at just under $30,000, the price of a bitcoin has risen to an all-time high of almost $65,000 per bitcoin this week. This comes as a bitcoin trading frenzy builds up to a fever pitch ahead of the highly anticipated market debut of U.S. crypto exchange Coinbase.
Adrian Lowcock, head of personal investing at investment platform Willis Owen, said in an email that “fear of missing out” can be a very strong feeling. “Cryptocurrencies and the technology behind them might have some potential, but their prices are very unstable, and it’s just as easy to lose a fortune as it is to make one.”
Before Coinbase’s IPO on Wednesday, almost all other cryptocurrencies are rising sharply. This week, the total value of all cryptocurrencies reached $2.2 trillion, up $200 billion in just a few days.
Ethereum, the second-largest cryptocurrency after bitcoin, has gained 15% in the last week, while Ripple’s XRP has recovered from a sell-off at the start of the year, doubling in price and climbing to highs not seen in over three years.
The big rise in bitcoin and other cryptocurrencies in 2021 has been helped by the long-awaited adoption of institutions and the support of high-profile investors like Musk.
Musk is known for sending tweets that move the market. Last week, he tweeted “…going to the moon very soon” right after the price of bitcoin started going up over the weekend. This led to rumors that Musk’s rocket company SpaceX could follow Tesla’s lead and add bitcoin to its balance sheet.
On April 1, Musk said that his private rocket company, SpaceX, is going to put a “dogecoin on the literal moon.” This caused the price of the meme-based cryptocurrency to go up by 35%.
The dogecoin rally started at the end of January when traders on the stock market got tired of the limits that were put on popular meme stocks and switched to cryptocurrencies. Many of them bought dogecoin.
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