Dogecoin (DOGE) made yet another skyrocketing move into the green, recording a new all-time high of $0.6844. The upwards motion was fueled by DOGE backer and entrepreneur Elon Musk, who noted that he might promote DOGE on SNL.
The meme coin exploded in the past four months, starting 2021 with a price point of $0.005 per coin. The current market price of Doge means the coin increased its price 132 times since the start of the year. The latest price push made DOGE’s market cap surpass projects like Ripple (XRP), and Tether (USDT) and currently sits at the fourth position in the market capitalization rankings with a value of $83,076,988,912. Volumes also exploded, surpassing a 24-hour value of $50 billion. In contrast, the second-largest cryptocurrency – Ethereum, moved only $8.6 billion more in terms of trading volumes.
Analysts and financial advisors consider DOGE as the new GameStop, which can be dangerous for novice investors, as the coin might suffer from severe volatility. For instance, The CEO of financial advisory and FinTech organization deVere Group Nigel Green noted that “the out-of-favor bricks and mortar videogame retailer rocked Wall Street in January when a group of small-scale mainly inexperienced investors, led by a frenzy on Reddit, sparked a historic short squeeze where they drove up its stock prices.”
“This week, since Reddit lifted its ban on the discussion of three cryptocurrencies – Bitcoin, Ethereum, and Dogecoin – activist investors and also some celebrity investors on social media have been urging others to invest their cash into Dogecoin – their new pet populist bandwagon. In the same way that the GameStop frenzy was pitched as a battle-play of ‘Wall Street versus The Little Guy’, Dogecoin is being pitched as a battle-play against the well-established crypto giants like Bitcoin.” Green added.
Green warned novice retail investors to act wisely, especially if they don’t have the financial resilience needed to withstand a volatility swing. DeVere’s CEO noted that DOGE doesn’t possess any unique selling points other than social media hysteria and influencer endorsement. In contrast, Bitcoin has a limited supply, which would ultimately push its price up, while Ethereum solves real-world issues and is the backbone for the majority of DeFi projects nowadays.
Meanwhile, one of the primary reasons for GameStop’s surge – Robinhood, crashed again due to the immense demand for investments in DOGE. However, the technical difficulties are no stranger to Robinhood, as the trading app blocked trading for highly volatile stocks like GameStop and AMC. On another occasion, Robinhood’s clients again experienced technical problems in April due to a sell-off pressure from Bitcoin’s 15% price drop.
Marketwise, nearly all cryptocurrencies are in the green, with Ethereum (ETH) reaching a new all-time high of $3,523.59 before consolidating to a current price point of $3,336.74. Binance Coin (BNB) secured $600 as a strong support zone and bounced to $646.23, as of press time.
The largest crypto to date, Bitcoin, is still struggling to hold over $55,000, with a current price point of $55,291.35 per BTC.