The cryptocurrency that emerged as sort of a joke is now gaining mainstream popularity and momentum in the financial markets. Dogecoin has become the talk of the cryptocurrency community as it rocketed by more than 500% since the start of April.
The spike in the price of Dogecoin has been truly astonishing in recent times. Since the start of the week, it has emerged at unprecedented price levels and hitting a record high in a rally fueled by social media on Tuesday. However, the price couldn’t maintain such high levels as it fell 15.4% to $0.33, decreasing its market capitalization from more than $50 billion to roughly $45 billion.
The digital currency has crashed in the past two days decreasing by about 30% in value. This decline occurred after the rally orchestrated by Dogecoin fans to raise its price to unprecedented levels. Dogecoin is currently trading at $0.28 which is a massive decline from a record high of $0.45 on Tuesday.
At the earlier stages of the frenzy, Dogecoin fans across the globe used the hashtags #DogeDay and #Doge420 on social media platforms such as Reddit and Twitter to raise the price of the cryptocurrency to unprecedented levels. The rise in the price of the coin is reminiscent of GameStop Corp.’s success earlier this year which was also propelled by traders and cryptocurrency enthusiasts on Reddit, Twitter, and other social media platforms.
Tuesday was the projected day for what online cryptocurrency communities refer to as “Doge Day”, an organized rally to push the price of Dogecoin to higher levels from its previous reflected price at 38 cents during the closing hours on Monday.
As of April 20 2021, it has been calculated that anyone who invests $1000 in Dogecoin at the beginning of the year would have accumulated up to over $57,000. Dogecoin’s growing popularity has made several organizations accept it as an official payment method. Companies such as Latvian airline airBaltic, Post Oak Motor cars, Dallas Mavericks, and Newegg.