Elon Musk’s favorite coin is back among the top five cryptocurrencies in the world. Dogecoin price keeps rising amidst the recent price crash that engulfed the crypto world which saw more than $350 billion vanish from the crypto market.
The extremely volatile nature of cryptocurrencies’ prices is the main reason most traditional investors don’t want to have anything to do with them. Yesterday, the crypto market went through its biggest price correction from the beginning of this year. Most of the virtual assets lost over 20% of their value within a few hours and the total capitalization that was lost were more than $350 billion. As of yesterday morning, the king coin had declined to almost $51,000 on some exchanges despite attaining a new price peak of about $64K on Wednesday. Ether also followed suit losing up to 19% of its value and declining from more than $2,550 to about $1,900. Surprisingly, one cryptocurrency wasn’t affected.
DOGE Now Has a New Peak Price
The world’s richest man’s favorite coin kept rising despite the market crash. The meme-inspired coin was remained firm during Sunday’s crypto-market mayhem. It rose sharply by more than 39% within the past 24 hours to trade above $0.44 at the Bittrex exchange. However, it experienced a slight decline and trades at about $0.40 as of this writing.
DOGE trading price. Source: TradingView
Three days ago, the electric car founder tweeted about his favorite coin and within some hours it had risen by more than 300 percent after rising by only 12 percent in the first few hours of the tweet. Musk’s tweet that time was an image of a “DOGE barking at the moon”.
Reasons For DOGE’s Price Peak
There have been several postulates on why DOGE keeps experiencing a price rally. One is the Coinbase listing on NASDAQ which caused all digital currencies to experience an upward price rally. Another reason for this coin’s price uptrend might be the announcement by easyDN (a Canada-based web hosting provider) that it would start accepting DOGE payments. This comes after this same company had previously announced that it now accepts bitcoin as payment. BOTS (a robotics firm) also announced officially that it would also be accepting DOGE as payments. Lots of other companies (especially, the Kessler group (a luxury hotel chain) and Airbaltic (a Latvian airline)) have started accepting DOGE payments in recent times.
DOGE’s Skyrocketing Fame
Dogecoin was noticed by a subreddit board that discusses stock and options trading and Elon Musk. Retail investors from this board pushed the price of the GameStop stocks to unheard-of points using the short-squeeze strategy such that most exchanges stopped trading it instantly. But, the angry investors used all their resources to push DOGE’s price. Hence, it took a short period for this virtual asset to increase by over 1,200%. Musk’s support also contributed to the cryptocurrency’s rise to fame through his regular tweets and comments about it to his more than 40.5 million followers. At about $50 billion as of this moment, Dogecoin’s market cap is more than that of most top banks across the globe.