The interest of investors in the crypto market is increasing day by day. Bitcoin and Ethereum had recently made the peak due to good purchases. The list of new heights of cryptocurrency also includes an interesting name Dogecoin. This meme-based cryptocurrency has left the rest of the currency far behind in terms of returns. Let’s know every important thing about Dogecoin.
What is Dogecoin?
Like Bitcoin, Ethereum, Binance Coin, Dogecoin is also a cryptocurrency. The specialty of cryptocurrency is that it is not concentrated in the hands of any government, institution or individual.
Dogecoin was started in the year 2013 as a joke by two IBM software engineers, Billy Markus and Jackson Palmer. It was a sort of sarcasm at the fast-growing new fraud cryptocurrency at that time. For this reason, the name and logo of Dogecoin were also derived from a popular mem ‘Sheeba Inu’.There is no upper limit on the circulation of Dogecoin like bitcoin. The number of bitcoins cannot exceed 21 million whereas more than 100 billion are already in the Dogecoin market.
Dogecoin has become the fourth largest cryptocurrency after bitcoin, ethereum and binary coin, according to a rapidly rising market cap.
Elon Musk Support
ur welcome pic.twitter.com/e2KF57KLxb
— Elon Musk (@elonmusk) February 4, 2021
Tesla owner Elon Musk has had good support for Bitcoin as well as this cryptocurrency. From time to time Musk’s Dogecoin tweet has accelerated the prices of this cryptocurrency. Elon Musk once even wrote ‘Former (former) CEO of Dogecoin’ in his Twitter bio. In addition, Dallas Cub Mavericks owner Mark Cuban, rapper Snoop Dogg and rock musician Jean Simmons have also appeared in support of Dogecoin.
SpaceX is going to put a literal Dogecoin on the literal moon
— Elon Musk (@elonmusk) April 1, 2021
Climbed nearly 1600% since February
According to data available on the CoinGecko website, the price of Dogecoin was around 3.8 cents on February 1, which has now reached 66 cents on May 5. In this way, if someone had invested $ 1000 in Dogecoin at the beginning of February, then the value of that investment would have been $ 17000. In the last week, this currency has strengthened by 147%. Almost every day this cryptocurrency is making its new peak. Dogecoin’s market cap has also risen sharply to over $ 85 billion due to the boom.
What is the reason behind the boom?
There are several reasons behind the rise in the prices of Dogecoin. At the beginning of the year, where this currency was climbing mainly with support from Elon Musk’s tweet. At the same time, the listing of the crypto exchange Coinbase last month gave a boost to Bitcoin, as well as Dogecoin.
Elon Musk has once again played an important role in the recent rise in this currency. Musk will host a Saturday Night Live show this week in which crypto investors are hoping that Dogecoin will be mentioned. Due to this, there can be a surge in prices. Fear of missing out (FOMO) means that at this time investors are buying Dogecoin for fear of being left behind in the race for profits. Listing on some new exchanges has also contributed to its rapidly rising prices.
Is this currency in a bubble?
There are reports about the preparations for the ban on cryptocurrencies by various countries. In such a situation, there is doubt among investors about all such digital currency including Dogecoin. There is also apprehension about its overvalue due to continuous wildness. If things do not happen as expected on Saturday Night Live, then the price of Dogecoin may fall. Like GameStop, it is believed that a group on Reddit is influencing the prices of Dogecoin. Even in such a situation, the prices of this cryptocurrency may be affected in the future.