Here is what made DogeCoin's price touch 60 cents
DogeCoin, a penny stock equivalent of the cryptocurrency world, was valued in excess of 60 cents a token briefly on May 4. This is an incredible feat since a 10-cent value was the DogeCoin backer's wildest dream back in January when the coin was hovering around just one cent. Here's why everyone is talking about DogeCoin today.
DogeCoin was created in 2013 as an "altcoin," an underdog overshadowed by crypto giants like Bitcoin and Ethereum which everyone has heard about. DogeCoin is identifiable by its logo of a Shiba Inu dog made famous by the viral meme known as Doge. The altcoin's rise in value can be attributed partly to Elon Musk and also to crypto exchanges that allow trading DogeCoin.
Since DogeCoin was created based on a meme, it is also called a memecoin—the first of its kind. Interestingly, another similar memecoin simply named Meme launched in August 2020 at $1 value. Today, it trades for over $2,000.
Billionaire philanthropist Musk has a penchant for making things immensely popular with a mere mention on Twitter. Musk tweeted "The Dogefather" on April 28 referring to the Saturday Night Live gig he would host on May 8. He is one of DogeCoin's highest-profile backers and his tweet could be one of the reasons for the memecoin's increase in value.
Additionally, popular crypto trading platforms eToro and Gemini recently listed DogeCoin. This made the coin tremendously more accessible since eToro alone has 20 million users who could now trade Doge. The spike in Doge trading reportedly caused crypto trading issues for Robinhood, the investing app that was recently in the news in connection with the GameStop squeeze. Robinhood said crypto trading is now restored.
However, backers believe Doge will never be very valuable since its creators haven't capped the quantity that can be in circulation. On the contrary, Bitcoin and Ethereum are valued because they are finite in number, and they get progressively harder to create or "mine". With no supply cap, will DogeCoin's demand ever be high enough to drive up prices? Only time will tell.
