The Dogecoin wind is blowing in the cryptocurrency markets this year. However, the reasons for the extraordinary rise in the Dogecoin. It increased annual return to eleven thousand percent, support the balloon market discourses.
Dogecoin, names from the Shiba Inu dog has become one of the most successful performing currencies in the crypto money market this year. It increased its annual return to 11,000%, became one of the top 10 earning digital currencies of the year.
The sharp rise of the digital currency, created as a joke, causes both admiration and concern among its supporters. Critics caution that Dogecoin embodies all the features of an asset bubble and is ready to explode. MarketWatch author Mark DeCambre highlights four factors that led to Dogecoin’s rise:
Elon Musk factor
Tesla and SpaceX CEO Elon Musk will host “Saturday Night Live,” one of the popular US entertainment shows, on Saturday. The fact that Musk is in front of the cameras already seems to have excited technology supporters.
Musk’s statements about Dogecoin have led to the speculative rise of cryptocurrency. By the way, In a Twitter message he shared before the “Saturday Night Live” program. Musk described himself as “The Dogefather” by referring to the Godfather movie.
Dogecoin trading in brokers
Recently, many new crypto money exchanges announced that they will trade Dogecoin. Crypto exchange Gemini stated on Tuesday that they will provide trading and custody support for the speculative cryptocurrency. The trading platform eToro announced that it has added Dogecoin to its platform. Webull allowed its users to buy Dogecoin on April 20.
Konstantin Boyko-Romanovsky, CEO of cryptocurrency platform All nodes, acknowledges that the bull market thesis on Dogecoin comes from Musk and another billionaire Mark Cuban. However, Romanovski also points out that it reached up to $ 60,000 in the past, which is more accessible.
“It is more appealing to the public as it costs much less. Paying $ 60k for a single Bitcoin can be scary for some. Doge in a way looks like the digital form of the US dollar ”.
Watch out for balloons and speculative madness.
Edward Moya from Oanda stated that the bubble should burst by now and said.
“However, institutional investors are trying to take advantage of this momentum. Moreover, it may support more growth.” However, there is a serious expectation. Dogecoin will experience a sharp decline after a point.
Mark DeCambre stated at the end of his article that many investment experts who are skeptical about Dogecoin warned that it could inflict great losses on amateur investors.