Can you still hold your Dogecoin up to $1?
Dogecoin, one of the newest and 2021’s most surprising cryptocurrency, has now reached another all-time high value for the month of May. On Tuesday, May 4, the so-called ‘joke’ digital asset skyrocketed its value at the price of $0.66. This is an increase of over 50% for more than 24 hours timeframe only. The highest price value was unexpected, but what’s the reason behind this surge?
Why Dogecoin suddenly went bullish?
CNBC cited on Tuesday, May 4, the data from Coin Metrics saying that the coin’s market cap has already reached over $69 billion, thanks to the sudden surge. The latest run was also a successful bullish track that reached all-time high of over 600% for the past weeks and more than 11,000% increased since the beginning of the year 2021. The main question: how did all these happen?
If we’re going to compare the prices on Binance chart, the Dogecoin’s price surge started in December 2020. Then, the coin suddenly dropped again until the month of April 2021. Last month until today, the Dogecoin value did not stop surging.
In a Fortune report, they claim that different reasons could be the main highlight of Dogecoin’s all-time high at the start of this month. Here are some of them:
Oakland A tickets
The first possible reason of Dogecoin’s surge is the Oakland A’s announcement on Twitter. Day before the surge, Oakland A’s began selling seats for Dogecoin. For a price of 100 Dogecoin, two-seat pods will be made available for anyone.
Second possible reason of Dogecoin interest is American restaurateur and celebrity Guy Fieri. On Monday, May 3, the celebrity chef started to tweet “To the Moon” on his page, pertaining to the coin’s original motto for all Dogecoin fans. He also mentioned on his tweet that he will be selling his merch for an exchange of Dogecoin assets.
Lastly, Elon Musk
Last but definitely not the least possible reason is Tesla CEO and second-richest man in the world, Elon Musk. It is not a secret that Musk has been known to become the ‘Dogefather’ for the past months. His tweets and opinions about the ‘meme’ coin were the main reason why the Dogecoin reached its all-time high targets for the past weeks.
In fact, his last tweet about the coin, “The Dogefather SNL May 8,” referencing both the coin and his upcoming appearance in Hollywood’s ‘Saturday Night Live’ had the Dogecoin fans rushed to their wallets and forced them to buy more assets in their account.
The chaos in the market also worsens when business entrepreneur and Dallas Mavericks basketball team owner, Mark Cuban, joined the hype.
“As long as more companies take doge for products/services, then Doge can be a usable currency because it MAY hold its purchasing value better than a $ in your bank,” Cuban said in a May 2 tweet. “If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit.”
Should you invest on Dogecoin?
Just like other cryptocurrencies, experts also warned that Dogecoin is a volatile investment for now. Only invest money that you’re also willing to lose.
“If you like Dogecoin and think it could be a viable currency in the future, or are fans of the idea and the movement, go ahead and invest in it,” said Ben Weiss, co-founder and CEO of CoinFlip, one of the largest bitcoin ATM companies in the U.S. “If you don’t like it or think it’s a fad, don’t invest in it.”