Topline
The value of dogecoin, a cryptocurrency originally invented as a joke, surged to an all time high of over 50 cents Tuesday, a landmark as enthusiastic online traders continue efforts to push the digital currency towards $1.
Dogecoin passed $0.50 Tuesday.
Key Facts
At the time of writing, dogecoin was trading at around $0.53 a coin—a record high.
The price was up 36% from the previous day and has risen 95% over the past week.
Dogecoin’s market cap of $69 billion places it as the fourth most valuable cryptocurrency, behind bitcoin, ethereum and Binance Coin.
At its current value, dogecoin is worth more than gaming company Nintendo, car maker Mitsubishi and bank Santander.
Key Background
The one-time joke cryptocurrency, which was inspired by a viral image of a Shiba Inu dog, has proven to be immensely popular among at-home traders, many using Reddit forums to inform their trading. While all cryptocurrencies are volatile in nature, dogecoin has been subject to a greater deal of volatility than more mainstream tokens, including bitcoin and ethereum, buoyed on by its dual identity as a meme. Some of the biggest spikes for dogecoin have come after the token was mentioned by Elon Musk on Twitter, messages that were often accompanied by memes.
What To Watch For
Brokerage platform eToro announced support for dogecoin Monday, citing client demand. The platform has around 20 million users around the world. With services and companies including PayPal, Venmo, WeWork and Tesla now supporting more traditional cryptocurrencies, it’s possible some may begin to support dogecoin.
Tangent
Ethereum, the second most valuable cryptocurrency by market cap, also hit an all time high Tuesday, pushing past $3,500 mark. At the start of the year, ethereum was trading at just under $740.
Further Reading
‘It’s Doge Time’: Dogecoin Surges As Reddit Traders Push To Make It The Crypto GameStop (Forbes)
