Trades just under 50 cents with market cap above $62b
The price of Dogecoin, the meme-currency that started as a joke, reached an all-time high of $0.48 in the wake of news that the popular online trading platform eToro will offer this coin to its customers.
The Israeli brokerage has more than 20 million registered users, which simply means Dogecoin trading will be available to its large customer base via eToro’s trading platform. The trading app had come under criticism from customers for not supporting Dogecoin – the world’s sixth most valuable cryptocurrency – despite it experiencing remarkable price gains in 2021, the Independent said in a report.
“It is Dogecoin’s price relative to bitcoin that makes it so remarkable right now. From 1 January to the market top on 19 April, Dogecoin was about 35 times up against bitcoin and 70 time up against the US dollar,” Professor Carol Alexander, a leading crypto academic at the University of Sussex Business School, told the British publication.
“It is a low-cost, high-risk investment with the potential for massive returns – which can’t be found elsewhere at the moment. Even high-risk junk bonds have virtually no returns now.”
Referring to an email by eToro, the publication said Dogecoin was part of the firm’s “further expansion of crypto services”, which now include 19 cryptocurrencies.
Co-founded in 2013 by Australian marketing professional Jackson Palmer and American software developer Billy Marcus, Dogecoin became an attractive investment option from a range of cryptocurrencies. It is cheap and has unlimited supply.
For speculative traders, it has turned out to be a get-rich-quick scheme. The coin has given more than 10,000% return in 2021, much of it was due to the social media hype created by Reddit community, the same group that brought Wall Street giants to the knees earlier this year by inflating the price of GameStop to unrealistic levels.
Another factor that pushed Dogecoin prices up were tweets of Elon Musk, who showed support for it. The Tesla CEO went on to say Dogecoin could be the currency of Mars, though he later acknowledged he keeps joking about Dogecoin. His tweets and comments have been used by speculators to push to the price of Dogecoin up almost immediately.
The founders admit this currency was created for fun and other social causes and it was never meant to attract huge investment. When the prices surged dramatically, both Palmer and Marcus distanced themselves from this coin. Dogecoin proponents have been speculating about this digital currency to hit $1, but critics say it may not happen because the coin has no real value.