Dogecoin price surged over 500% in one day after Tesla CEO Elon Musk tweeted a picture of dog. This picture was in the form of popular fashion magazine named Vogue. Musk conveniently replaced the word ‘vogue’ with ‘dogue’ and made it look like he was supporting Dogecoin. Its price soared more than 50% in an hour and a half after Musk tweeted this:
Dogecoin is a digital currency that was initially launched as a joke in 2013 as an insincere reply to Bitcoin. Even its branding is taken from a popular ‘Doge’ meme, which contains the picture of Shiba Inu dog. By the year 2014, dogecoin unexpectedly received massive following and reached market capitalization of 60 million USD. It is still continuing to rise gradually and a large part of community on social media is betting on its chances to cross $1 mark this year. The company itself is quite hopeful:
Elon Musk Helping Dogecoin Price Rise
Well, it is not unusual for a cryptocurrency to rise dramatically, as seen in the case of Bitcoin during COVID-19 pandemic. However, it is alarming when a meme-based cryptocurrency sees that kind of rise. Musk’s followers recognized his tweet as an endorsement to the dogecoin rally or an expression of supporting it as the biggest coin in future.
This isn’t the first time Musk has caused a Dogecoin spike. This is a post from July 2020 where Musk shared some optimistic thoughts with his followers:
The Dogecoin price rose by 14% after this tweet. Then in December 2020, he tweeted again and increased the price by 20%:
Few days ago, Musk tweeted to support the rise in GameStop Stocks, which rallied more investors who raised it even further. Dogecoin has been named by many as the GameStop (GME) of cryptocurrency after this recent price surge. A large group of people were buying dogecoin to push it higher to make profits, just like they did with GME.
Dogecoin has always traded at only fractions of cents but on Thursday it jumped to over 0.049 USD from 0.007681 USD. This activity has frustrated the hedge fund managers who might have shorted the stock on dogecoin by expecting continuous decline.
Social Media Urges To Hold
A lot of investors on social media got behind the rise of dogecoin and urged everyone to hold and not sell. Even when the price came down from record 0.082, many decided to not be bothered by this fluctuation. They still believe that holding can be profitable in the future regardless of the coin’s meme nature.
Dogecoin enthusiasts are confident that the price will go up again so investors should not panic sell during the dip. They encouraged them to keep buying and hold on to it, till it happens.
Dogecoin is a community-based investing which is its biggest strength and sets it apart from other cryptocurrencies. According to the reports, 113 billion dogecoins have been mined till now. All investment transactions take place in a digital public ledger called blockchain, which is maintained by the mining system. On, Christmas 2013 some hackers stole 12,000 USD worth of dogecoins, that summed up to 21 million coins. Then the community stepped in to recover lost coins by starting a fundraiser. This generous activity has also helped in attracting more investors towards this cryptocurrency.
How Dogecoin Price Surge Affect Other Cryptocurrencies?
Dogecoin surge has brought it close to joining the top crypto-club in terms of market capitalization. They confidently claimed that the price will reach up to 10 cents on 29th January, which is today.
Bitcoin (BTC) touched 41,000 USD mark earlier this month before plunging down to 30,000 USD but during this stormy week, it has gone up 10%. BTC currently stands at 37,000 USD.
Ethereum (ETH) also got a boost when Reddit announced its partnership with Ethereum Foundation to back the cryptocurrency and its blockchain platform. It was also trading 10% higher than before but currently, it was around 1400 USD. The market is retreating but it has seen some great high.