Dogecoin has recorded a new all-time high Friday with a market capitalization of about $92 billion following a six month of more than 26,000%. The meme-inspired crypto had soared 450% over a week attaining a high record of $0.32 in April 2021.
Analysts compare it to tech giant Amazon which took over a decade to deliver a 10,000% return to investors, whereby it has taken dogecoin just five months. The massive surge comes after support from more those in the cryto trading industry as well as Tesla CEO Elon Musk, who sent the price of his favored coin soaring after tweeting about it several times. Gemini, a popular exchange, also announced support for dogecoin, after eToro added it to its online trading app this week. Celebrities with the likes of Snoop Dogg and Gene Simmons have also endorsed this meme-coin
Mati Greenspan, portfolio manager and founder at Quantum Economics, told CNBC that the joke is on Wall Street this time. “What you have is a situation where teens on TikTok are outperforming even the smartest suits by thousands of percentage points.” The satirical cryptocurrency was launched by software engineers Billy Markus and Jackson Palmer, in 2013, as a way to make fun of bitcoin and other crytocurrencies. The duo called it dogecoin after the once-popular doge shiba inu meme. “One of the value propositions of bitcoin is digital scarcity; that there will only be 21 million,” Greenspan said. “There is no such hard cap, and it has a really crazy inflation schedule.”
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Galaxy’s researchers Alex Thorn and Karim Helmy explained that the appeal of dogecoin has always been its honesty. “Unlike many other cryptocurrency projects, there’s no grand vision, no pronouncements about how dogecoin will change the world.” Avi Felman, Head of Trading at BlockTower Capital, described this latest hype as “this kind of big F-U to the system”. “It’s like, Yeah, this thing can have value too. And I’m just going to buy it, because I’m going to buy it. Elon is basically pushing up this message of, ‘Why can’t dogecoin have value?’” Felman said. “It’s part of the GameStop boom. People like these narratives. They like these stories.”
However, there isn’t much anyone can do with dogecoin. It isn’t a reliable store of wealth.
