Once created as a meme cryptocurrency in 2013, Dogecoin has risen to its excellence in just a few years. The cryptocurrency now has all the features to be considered in the same line as the mainstream cryptocurrencies like Bitcoin, Ethereum, and Litecoin.
Recently Dogecoin replaced the fourth largest powerful cryptocurrencies in terms of market capitalization, XRP, which has again raised the investors’ price expectations. Last Monday, when Dogecoin replaced XRP, its market capitalization was over $53.5 billion, with the current market price standing a little over $1. Everyone in the crypto industry, including some congressmen who were once against the crypto coin making headlines, is now hit by the Dogecoin craze. Recently one of the house members, Mark Green, disclosed that he purchased Dogecoin recently this month.
Now the cryptocurrency is worth $50 billion after it joined the 2021 rally of 7,199%. The rally got momentum following the innumerable tweets from the Tesla king Elon Musk, praising Dogecoin in every way possible. Other personalities like Gene Simmons, Snoop Dogg, and Guy Fieri also praised the coin and called it the future cryptocurrency. Another contributing factor towards the increasing price rally for Dogecoin like never before is the direct listing of Coinbase in Nasdaq and the surge in Bitcoin prices to more than $60,000.
The $50 billion valuation is said to be more than even some of the most powerful companies like Ford Motor Co or Marriott International Inc. The latest Dogecoin frenzy is termed as the “Doge Day” (Tuesday, April 20) in various online forums, which is yet again deemed a gentle bid to push the price of Dogecoin slightly over to $1, from less than a penny in early January. April 20 is celebrated as an unofficial holiday by cannabis smokers.
Moreover, many dogecoin investors are predicting the meme coin to hit 69% on April 20. However, there are also dogecoin price predictions against it, as some call the present Dogecoin price rally a bubble that can burst any time. The logic behind this is that Dogecoin’s ownership is concentrated only in a few hands, and therefore it can fall any time.
In such a scenario, people are often confused about whether it is safe to buy Dogecoin or not. Some are sighting examples of the Republican House Member buying Dogecoin and reaping the profits from Dogecoin’s rising prices. Yet again, some are scared that the price rally may be a bubble. Therefore, it is advisable to invest in Dogecoin only up to the extent that can be afforded.
