This article was written exclusively for Investing.com.
The parabolic move in cryptocurrencies continues to drive many tokens higher. The two major cryptocurrencies, Bitcoin and Ethereum, have recently reached new heights. The reached $ 65,520 on April 15, and the $ 2,763 on April 28.
At last count, the asset class had a total of 9,478 tokens with a market cap of just under $ 2.1 trillion. The two leaders hold around 64% of the market capitalization. The other 9,476 tokens hold the remaining 36%. Only eight cryptocurrencies have a market cap above $ 30 billion.
The seventh is the, a token that started out as a joke. DOGE recently climbed back to over 40 cents per token. As of April 28, it was at 32.5 cents, with a market cap of over $ 42 billion, which is hardly a joke in this asset class.
Dogecoin was originally a joke
Dogecoin is a cryptocurrency invented by software engineers Billy Markus and Jackson Palmer. The duo have created an instant payment system that is fun and free of traditional bank fees. A dogecoin features the face of the Shiba Inu dog from the “Doge” meme as its logo and namesake.
Dogecoin burst onto the cryptocurrency scene in December 2013, at the height of the first Bitcoin rally. The founders took their invention as a joke, with the idea of creating a silly and entertaining cryptocurrency token inexpensive enough to attract a large market.
Dogecoin is a slightly modified copy of, which has been modified from Bitcoin. The founders pitched the coin like a goof on all the crazy altcoins coming into the market.
Each token then represented a fraction of a cent. Dogecoin fans, or “shibes” on the Reddit forum, have started to tip each other for funny comments using Dogecoin.
Elon Musk has a special affinity for the DOGE
Tesla (NASDAQ :) CEO Elon Musk has been a huge fan of Dogecoin for the past few months. On April 1, he tweeted: “SpaceX is going to put literal Dogecoin on the literal moon.” In February, he tweeted “Doge” followed by “Dogecoin is the people’s crypto”. Elon Musk’s knack for making the nerdy engineer the new cool pushed the price of Dogecoin up to 50% after the tweet.
Musk isn’t the only high profile supporter of Dogecoin. Unsurprisingly, the cryptocurrency caught the attention of rapper Snoop Dogg, who put a Shiba Inu “Snoop Doge” on the cover of an album. Former KISS bassist Gene Simmons has dubbed himself the “God of Dogecoin”.
Mark Cuban, owner of the NBA’s Dallas Mavericks, highlighted Dogecoin in a recent episode of the Ellen DeGeneres show, suggesting that the team was selling promotional products for payment in Dogecoin.
The altcoin that started out as a joke has enjoyed a tidal wave of positive public support from celebrities.
Market cap exceeds $ 40 billion, and that’s no joke
The top ten cryptocurrencies have a market cap of over $ 18 billion. This exclusive group represents less than 0.11% of the total number of tokens floating in cyberspace.
Dogecoin is a member of this esteemed group. As of April 28, it was trading above 32 cents with a market cap of around $ 40 billion.
Source, all charts: CoinMarketCap
The chart shows that in November 2020, a Dogecoin was worth less than 0.3 cents. The price recently hit a high of over 40 cents.
The shorter term chart over the past month shows a pattern of higher lows and highs for Dogecoin.
The trend is your friend
The trend is always your best friend in any market. The celebrity-fueled Dogecoin bullish trend, along with the parabolic trend of the entire cryptocurrency asset class, has been a powerful force.
Elon Musk’s backing for Dogecoin may be a bit of a blunder, but he has walked the talk when it comes to believing in the cryptocurrency asset class. Earlier this year, Tesla (NASDAQ: TSLA), the company Musk founded and of which he is the CEO, invested $ 1.5 billion in bitcoin and began accepting cryptocurrencies for payment of. his products.
Recently, the electric vehicle maker sold some of its cryptocurrency holdings, to boost its profits in the first quarter and to test market liquidity. I’m pretty sure the second richest person in the world, with a net worth of over $ 150 billion, owns a number of Dogecoins.
Wild speculation could be a sign of at least a temporary peak
After the price has risen from six hundred to over $ 65,000, market participants are looking for the next token that will lead to incredible wealth. Of the more than 9,400 tokens, many are lotto tickets that will eventually collect dust in computer wallets. Yet, there is always a chance that some are rough diamonds that will deliver incredible bitcoin-like returns to cryptocurrency investors.
Dogecoin may have started off as a joke, but its $ 40 billion market capitalization makes it a player in the asset class. Each 40-cent Dogecoin is worth more than six times what a Bitcoin was worth in 2010.
In the meantime, wild speculation often creates bubbles that eventually burst. We are likely to see high price volatility for this asset class, as there are few, if any, examples of markets that have generated returns similar to cryptocurrencies in our lifetime. However, at $ 2,000 billion, the market capitalization of the entire asset class remains below the valuation of Apple Inc (NASDAQ :), leaving plenty of room for growth.
Dogecoin is no longer a joke. DOGE’s public relations have been the best in the asset class, making them one of the best dogs and the best in the digital currency world.