The Dogecoin price set a new all-time high on Wednesday (5/5), breaking the US $ 0.69 level.
The incredible ascent of the meme-based crypto asset makes Dogecoin currently the fourth most valuable in the world.
Hitting the level of US $ 0.69, since the beginning of the year DOGE has shot 13,611% and has jumped 1,017% in the last 30 days, according to Messari data.
Dogecoin has “very strong fundamentals and enormous strength supporting its revival,” according to a report titled Dogecoin: The Most Honest S ** tcoin from Galaxy Digital Research which was released Tuesday (4/5).
In its report, Galaxy Digital shows an increase in Dogecoin users, analyzing various on-chain metrics to determine how popular the crypto is.
Alex Thorn, Head of Research at Galaxy Digital said in the report, there were more than 3.6 million DOGE accounts, with about 60% of the total accounts created in 2021.
Come from various angles
Its surging popularity has now seen DOGE overtake XRP as the fourth largest crypto asset by market cap on Messari and CoinMarketCap.
Dogecoin is currently worth a total of US $ 84.2 billion, while XRP has slipped to sixth with US $ 55.9 billion. While bitcoin (BTC) remains king with a capitalization of over US $ 1 trillion.
Dogecoin’s growth has come from many angles this year. The multi-asset brokerage platform eToro added support for the crypto asset Monday, offering DOGE to its clients.
Gemini follows eToro by announcing Dogecoin on their list of coins on Tuesday.
Meanwhile people, such as Tesla CEO Elon Musk and billionaire investor Mark Cuban, continue to spur the price of Dogecoin and highlight what Galaxy Digital calls an “awesome project”.
It’s possible the price of Dogecoin, which was originally a joke, could go up even further when Elon Musk appears as the host of Saturday Night Live this weekend.
Elon Musk has indicated that he will be raising Dogecoin while hosting the event.
As Thorn said, “People love a good joke.”
Dogecoin price is returning to all-time highs, this is the driver
Dogecoin’s price returned above US $ 0.40 after a significant jump following news that the popular Israeli online trading platform eToro will offer crypto assets to its customers.
The news helped push Dogecoin’s market cap back above US $ 50 billion and is now trading at an all-time high of US $ 0.43.
Referring to CoinDesk data, Dogecoin’s price on Tuesday (4/5) at 14:17 WIB was at US $ 0.439888 or an increase of 14.41% compared to the position 24 hours earlier.
The decision to make the meme-inspired crypto asset available to its users opened up Dogecoin investing and trading for more than 20 million registered eToro users worldwide.
The trading app has come under fire from customers for not supporting Dogecoin, the world’s sixth most valuable crypto asset, despite experiencing a tremendous price increase in 2021.
Other major platforms and exchanges that are reluctant to add Dogecoin include Coinbase. One of the reasons, could be the volatility.
Low cost and high risk
Experts warn that the potential for large profits comes with the risk of large losses, even in comparison to other well-known crypto assets which are highly volatile.
“It is the price of Dogecoin relative to Bitcoin that makes it really extraordinary right now,” Professor Carol Alexander, a leading crypto academic at the University of Sussex Business School, told The Independent.
“From January 1 to the market peak on April 19, Dogecoin rose about 35 times against Bitcoin and 70 times against the US dollar,” he said.
“This is a low-cost, high-risk investment with massive potential returns, which cannot be found anywhere else today,” he added.
In e-mailed to customers, eToro stated, Dogecoin’s offering is part of a “further expansion of crypto services”, which now includes 19 cryptocurrencies.
“Under branding, Dogecoin is based on a strong technical foundation, using a proof of work mechanism, such as Litecoin or Bitcoin, with small but important differences,” said eToro, as quoted by the Independent.
“Unlike Bitcoin’s fixed supply and relatively slow block times, Dogecoin’s supply is increasing at a steady rate, turning Dogecoin into inflation with faster and cheaper transactions,” said eToro.
“The qualities that some think make it ideal for use as real-world currency,” said eToro.