LONDON NEW YORK, 20 April 2018- Dogecoin dropped after hitting an all-time high in a wild session that saw supporters of the token once considered a parody use hashtags to fuel a rally until it lost steam.
Dogecoin eventually fell 15.4% to US$ 0.33, but during the session when it reached a record peak, its market capitalization soared to more than$ 50 billion. After the slump, its market cap dropped about$ 4 billion, according to Coinmarketcap.com.
By comparison, the wildly popular bitcoin has a market cap of over$ 1 trillion.
Dogecoin fans used the hashtags DogeDay and DogeDay 420 to post memes, messages and videos on Twitter, Reddit and TikTok referring to the informal May 20 holiday to celebrate cannabis marked by smoke-ins and street parties.
DOGECOIN LAMBO: GIM ME THAT GIM ME!! The one tweeted about Lamborghini sports cars which are popular in Crypto culture.
An 8,000% price increase this year saw Dogecoin, which started as a satirical critique of the cryptocurrency frenzy 2013, overtake more widely-used cryptocurrencies like Litecoin and briefly Tether to become the sixth-largest coin in the world.
The current retail fervor probably wo n't sell to Dogecoin in the present situation, said Edward Moya, senior market analyst at online FX trading platform OANDA, but he did anticipate the event reaction for the cryptocurrency.
Dogecoin's logo shows a Shiba Inu dog at the center of the meme. It can be traded on more popular exchanges and crypto trading apps.
The Doge rally represents an interesting convergence, according to Diana Biggs, CEO of crypto start-up Valour, after Dogecoin's price jumped in the last week to a record$ 0.42, according to CoinMarketCap.
A meme coin created as a joke for early crypto adopters whose community found that type of thing to be fun, with now a new generation of retail investors for whom memes are a native language, Biggs added.
Dogecoin's rise came during a surge in retail trade of stocks and crypto by retail investors, who were stuck in the home with extra cash because of the COVID 19 pandemic. The coin has not seen much growth in use in payments or in commerce.
A boom in the usage of online trading apps like GameStop Corp also fueled the social media-driven rally in the stock of Robinhood, which pitted retail investors against hedge funds.
It's an extension of the same phenomenon that has led Tesla stock to be valued well beyond fundamentals and more recently to the short squeeze from GME, said Ajit Tripathi, head of institutional business at decentralized finance startup Aave.
Like other cryptocurrency cryptocurrencies, the price of Dogecoin is heavily influenced by social media users including Tesla CEO Elon Musk, who in February sent its price over 60% higher on the cryptocurrency.
According to the betting aggregator US-Bookies.com, dogecoin currently has a 16.7% implied probability of gaining more than$ 1 at the end of 2021, a significant improvement from earlier this month when it had only a 2.9% chance to do so. When you 're busy, just need to say what you 're doing, or the family that is going to buy your new boat?