Despite the obvious negative factors, Elon Musk’s favorite cryptocurrency is growing in price and ranks fourth in terms of capitalization. Dogecoin is now more expensive than Ford.
The new surge of DOGE is again associated with the verbal interventions of Elon Musk. The super-entrepreneur announced via Twitter that he will host a program called The Dogefather on May 8 on the channel Saturday Night Live with 11.5 million subscribers.
However, it may turn out that Musk no longer needs to pump Dogecoin. It looks like he has started a process that develops on its own. For example, billionaire Mark Cuban recently stated that he believes Dogecoin’s growth is organic because people directly use it in transactions. In particular, Cuban-owned Dallas Mavericks, the National Basketball Association (NBA), and other US clubs and teams sell tickets for DOGE. Dogecoin also gained a new 30% due to the news that the eToro trading platform has added it for its 20 million users.
The Dogecoin price did not rise above 0.02 cents until March 2017. The all-time DOGE low of 0.008547 cents was on May 7, 2015, a year and a half after the launch. Dogecoin (DOGE) is a fork of Litecoin (LTC), which in turn is a fork of bitcoin. Dogecoin is 2.5 times faster than Litecoin, and Litecoin, in turn, is 4 times faster than bitcoin blockchain. DOGE has unlimited emission, unlike BTC.
A year ago, DOGE was worth $0.0024. If someone had invested in it, then today he would have got a 26,500% profit. There is reason to believe that one of these investors is Elon Musk. In February 2021, Musk gifted several DOGEs to his nine-month-old son and named him a toddler hodler. Now the baby investor is up more than 10 times.
However, experts in the cryptocurrency market consider the growth of this meaningless cryptocurrency to be similar to many scam projects in 2018. Then 90% of investments in the crypto market went to scammers, and the cryptocurrency winter came for two years. Now the situation is not so dangerous, DOGE investors may have time to switch to other cryptocurrencies, but losses are inevitable. This opinion, in particular, is expressed by Mike Novogratz, CEO of the cryptocurrency firm Galaxy Digital. He states that the growth of DOGE is going along due to the fiat money increase in the economy, however, it is limited by two reasons. First, DOGE is bought by retail investors, institutionals do not invest in it. Second, the unlimited emission of Dogecoin will definitely lead to a drop in its price.