Dogecoin, the coin known as a joke cryptocurrency, has skyrocketed because Tesla CEO Elon Musk has endorsed it. As a result of Musk’s tweets, retail investors are buying Dogecoin in large amounts.
Short-term Investors
The hype among retail investors created as result of discussion in chat apps and WallStreetBets of Reddit. However, the aim of traders is to gain profit on a short-term rather than long-term.
Tesla CEO is responsible for pumping DOGE’s price value high via his tweets. He endorsed his followers to invest in the joke cryptocurrency which resulted in all-time high. Musk is not the only major personality who praised the coin as many other famous personalities are purchasing it in bulk amounts.
Famed rock star Gene Simmons unveiled his purchase of Dogecoin in his recent tweet. According to Simmons, he invested in the coin because there are greater chances that it would go up in the future. He shared a meme picturing himself and Musk while labeled it with a title “God of dogecoin.”
However, Simmons also revealed that he also owns other largest cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), Ripple (XRP), Litecoin (LTC), and Chainlink (LINK).
The value of DOGE has increased by nearly 400% since the last week of January. Musk asked his followers via a poll that whether the Dogecoin is the future currency or “all other crypto combined.” The results of the poll show that people gave votes in favor of “joke” coin while ignoring all other cryptocurrencies.
500% Increase in a Single Day
On January 28, the price of Doge soared by over 500% as result of attention from Musk. However, Musk has also received criticism for promoting Dogecoin as it does not involve value. Currently, the price value of the coin is standing at $0.058 after an increase of 20.82% in the last 24-hours.
The crypto market has shown a mixed performance in today trading session. Bitcoin is trading at $39,418 after a slight decrease in the previous 24-hours.Ethereum is down by 2.58% over the day as it is exchanging hands at $1,636. Cardano, on the other hands, is up 24.74% in the given period. The global crypto market cap is standing above $1 trillion. Bitcoin’s dominance has experienced a slight increase of 0.24% over the day.