Why Did Dogecoin Spike and Will It Hit $1?

Why Did Dogecoin Spike and Will It Hit $1?

Dogecoin is at an all-time high. The parody cryptocurrency has seen a 144% hike in the last 24 hours, and continues to spike as we speak, thereby leading to the big question: what’s the reason behind that iconic surge? The revelations are here.

Dogecoin is an open source, peer-to-peer cryptocurrency that came into existence in 2013. After a roller-coaster 7 years, the digital currency went up over 800% in 24 hours in January 2021. However, the surge didn’t last long. The coin’s price was plummeting to a new low every day, until April 14.

While January’s surge can be credited to Elon Musk, the reason behind the recent encouragement initially goes to Coinbase. The IPO of this cryptocurrency exchange on April 21 helped it attain an all-time high price of $0.244 – and a market cap of $30 billion. 

The coin was hovering under the three-to-seven cent range for the past 3 months, until its price went up to 25 cents after Elon Musk, its biggest supporter, started tweeting again.

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Reasons behind the Dogecoin spike?

According to latest metrics, Dogecoin has surpassed even the most valuable cryptocurrency of the world, such as Bitcoin and Ethereum. 

So, what could be the reason behind this successful run? 

Kronos, a California air purification technology firm, recently swapped its existing crypto with 600 million Dogecoin cash. Although not the same, this cryptocurrency is linked with Dogecoin. Speaking about the same, here is what Kronos’ president Michael Rubinov has to say,

“With the growing excitement around Dogecoin Cash, Kronos aggressively accepting Dogecoin as payment, and our popular limited edition air purifier rebranded as AirDOGE, we felt that swapping into Dogecoin Cash was a natural fit.”

Another reason could be the increasing trust and support of people for cryptocurrencies around the world. Even Coinbase has had a very successful run in 2021 so far. Given its direct listing by Nasdaq, the surge is natural to follow for other popular coins, especially the ones that get support from the who’s who of the tech community. 

Will it be technically hitting the $1 mark?

On Thursday morning, the value of Dogecoin reached 25 cents. This had the crypto fans talking about the possibilities of eventually hitting the $1 mark. But, is that possible?

Here’s what cofounder Markus has to say about the question:

“It’s an open market, so the current value is simply decided by whatever someone is willing to pay for it at a specific point in time. If the world collectively decides they are willing to purchase it for a dollar, then it’s worth a dollar. In the world of cryptocurrency valuations, I would say, historically the question is less about ‘why?’ and more about ‘why not?”

Dogecoin was initially launched as a parody of crypto currencies in 2013, following a popular meme that featured the Shiba Inu dog. Since then, it has retained a loyal following and the dog’s face has worked out to become a unique identifier for the cryptocurrency and a major reason behind its increasing popularity.

Broadly, it all depends on the market. Turning something from a meme to a niche currency may not happen overnight, but world markets are famous for their disruptions. Whether it will happen for Dogecoin, only time will tell.

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