Dogecoin was actually intended as a meme. The cryptocurrency with the symbol of the Shiba Inu was created without a fixed limited money supply. By definition, there is an infinite amount of DOGE, which runs counter to the idea that cryptocurrencies are valuable because of their little money supply.
Dogecoin enjoys a small rally every year, which is usually accompanied by more or less hype on social media. In the recent past, the price was boosted by Elon Musk’s tweets, who did not want to give any financial advice but nevertheless revealed himself as a fan.
In the last few hours, the DOGE price literally exploded, and now many experts are perplexed by the renewed phenomenon.
The reason for the increase is the integration into the Flare Network. Although this had been known for some time, investors’ resulting options have been increasingly discussed on Twitter in recent hours.
While Flare thus enables a use case for Dogecoin that lies outside of memes and tips, it does not explain the rapid demand and steep rise in any meaningful way. After all, the earning potential is not as excellent as requiring paying 150% to 200% premium for DOGE.
Another explanation is market manipulation by Wallstreetbets. On Reddit, the group had managed to mobilize the masses and cause the Gamestop share price to skyrocket. The unquestionably entertaining development of the group has been hotly debated in the media. This morning, WSB commented on Dogecoin via Twitter in the form of two seemingly innocuous questions. These may actually have been taken by many investors to mean that DOGE could soon rise to US$1. For that to happen, however, you have to read a lot into WSB’s tweets.
Every trade is risky, with no guarantee of profit. Our website’s content is for informational purposes only and does not constitute a recommendation to buy or sell. This applies to assets, products, services, and other investments. The opinions communicated on this site do not constitute investment advice, and independent financial advice should always be sought where possible.