Elon Musk’s appearance on Saturday Night Live on May 8 fueled the rally of Dogecoin, a rally that brought Robinhood’s trading app to a halt.
Dogecoin has risen nearly 30 percent on Tuesday and more than 11,000 percent this year, placing it in the top 10 of the most valuable digital assets this year.
Dogecoin’s rise began for the first time in February, thanks to a series of tweets from Elon Musk, CEO of Tesla and SpaceX, and one analyst indicated it was also responsible for the current rally.
And theWrote Edward Moya, Senior Market Analyst at Oanda: Dogecoin is rising because many cryptocurrency traders don’t want to miss out on any of the hype that emanates from hosting Elon Musk on Saturday Night Live.
Although it started as a joke in 2013, Dogecoin has since gained a following that helped raise its value by endorsing celebrities such as: Elon Musk, Mark Cuban and Snoop Dogg.
One analyst said: If there is enough community around an asset, and that community decides to create long-term value through some form of lowering the supply cap over time, that means you are getting valuable currency.
Dogecoin’s critics note that even the coin’s supporters reject the claim that it has any inherent value, unlike supporters of currencies such as Bitcoin and Ethereum.
The Dogecoin bubble should have burst now, Moya wrote, but institutional interest is trying to capitalize on this momentum and that could support her rise again.
The rally raises both admiration and apprehension as its supporters aim to push it to a value close to a dollar, with critics warning that it bears all the hallmarks of a bubble that might burst and leave many losers behind.
And it seems that the fear of losing opportunities helped the rise, as many cryptocurrency traders do not want to miss the opportunity, along with the fact that its low value is more attractive to the general public compared to Bitcoin.
The increase in its value has also been helped by the announcement in recent days and weeks of a number of sites that they will open the door to trading Dogecoin on their exchanges.
On Tuesday, Gemini announced support for trading in Dogecoin, the eToro trading platform also made Dogecoin available to trade on its platform, and the Webull platform allowed its users to purchase Dogecoin again on April 20.
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