Every dog has its day … but a whole year? In fact, dogecoin, the meme cryptocurrency linked to an image of a Shiba Inu dog, has been enjoying one of the best years for cryptocurrency in recent memory, with annual gains to date of more than 11,000% and placing it in the top 10. of the most valued digital assets of this year.
At the last check, the dogecoin DOGEUSD, + 2.35% was changing hands at 54 cents, an increase of more than 23% in the last 24 hours and an increase of around 11,210% so far in 2021, according to CoinDesk. That parabolic surge is generating applause and apprehension as its supporters aim to drive the parody coin to a value close to $ 1, with critics warning that the asset has all the hallmarks of an asset bubble that is bound to burst. and leave a carnage in its wake. Just don’t say that to crypto cheers, or risk being stumbled upon by this common saying: “enjoy being poor.” So why is dogecoin, pronounced “dōj-coin”, in such a monumental tear that it has overtaken cryptocurrencies, considered more serious representatives of the era of digital assets and blockchain? Here are a few reasons: His biggest reinforcement for ‘SNL’ guest host Elon Musk, CEO of Tesla Inc. and SpaceX, will be hosting “Saturday Night Live” this weekend, which has already drawn cheers and taunts for the technologist . He has become one of the most prominent and vocal Dogecoin champions this year and some speculate that he could do something to promote Doge. Musk referred to himself as the “dogefather” in a recent tweet prior to his “Saturday Night Live” performance. Stock brokers trade dogecoin Several new places have announced that they will be trading dogecoin on their exchanges in recent days and weeks. Cryptocurrency exchange Gemini announced on Tuesday trading and custodial support for the coin. The eToro trading platform also made dogecoin available to trade on its platform. Webull allowed its users to buy dogecoin on April 20. FOMO It is also said that the fear of missing something is behind the increase. Some crypto participants speculate that the dogecoin surge is being supported by retail traders who see the parody coin as a more accessible investment (or trade) than, say, bitcoin BTCUSD, -1.42%, which was changing hands at $ 54,000, in the last CoinDesk check. “Dogecoin is on the rise because many cryptocurrency traders don’t want to miss any rumors arising from Elon Musk’s presentation of ‘Saturday Night Live,'” Edward Moya, Oanda’s senior market analyst, wrote in a daily note. Earnings on traditional assets can also seem simpler. In comparison, the GC00 gold futures, + 0.14% are down 6% year-to-date, the Dow Jones Industrial Average DJIA, + 0.06% and the S&P 500 SPX index, -0.67% have risen by at least 10% in 2021, while the Nasdaq COMP Composite Index, -1.88% has gained more than 5%. Accessibility Konstantin Boyko-Romanovsky, CEO of Allnodes, through an emailed message, said that he viewed the support of Musk and fellow billionaire Mark Cuban as central to the bullish dogecoin thesis, but also said that some may perceive that crypto is more accessible compared to bitcoin, which recently peaked above $ 60,000 before cooling off. “It attracts the general public more because it costs very little. $ 60,000 for a single bitcoin can be intimidating for some. In a way, doge is more like a dollar but in digital form, ”he wrote. Bubbles and Manias Moya wrote that the dogecoin bubble should have “burst by now, but institutional interest is trying to take advantage of this momentum and that could support another higher momentum.” Many skeptics warn that dogecoin could leave many novice investors suffering losses if they foray into the asset recklessly.