In the month of April Dogecoin (DOGE) spoke of the crypto town. It traded in its usual $0.05 range on the first day of the month. Tesla CEO Elon Musk was tweeting about the coin once again on the day of April Fools. His tweet read, ‘EspaceX will put a literal Dogecoin on the literal moon’—SpaceX is the aerospace company Musk has founded as well. While the tweet was meant as a joke, it set the Shiba Inu token as no other.
The price rose by over 35 percent within two hours to a maximum of $0.07, before it cooled down temporarily, but still maintained its gains. The next price increase occurred on April 14th and within a single day the value of one token doubled to break the $0.10 mark. Musk turned his attention again to the coin and tweeted a picture of the famous Spanish artist Joan Miró’s painting saying, “Doge lapping on the moon.” Together with the increased social feeling, the tweet on April 16 pushed the price to $0.45.
The president and co-founder of CrossTower, Kristin Boggiano – a digital acquisition exchange — spoke with Cointelegraph for several reasons behind the rise: “First, the listing at Coinbase generated a general interest and mood in cryptography. Secondly, the popular Reddit ‘r/Wallstreetbets’ forum changed its rules for a day to discuss cryptographic issues, which included DOGE.”
The price increase took Dogecoin to fifth among the top 10 market capitalization cryptocurrencies. The market cap also passed briefly the 50-billion dollar mark, which is high for a coin designed as a joke. Now it ran seventh out of the top ten, with a market capitalization of $36.45 billion. at the time it was written. The price is now also $0.28 for correction.
In response to Cointelegraph’s retail demand, Eric Berman, Senior Legal Editor, United States Finance at Thomson Reuters commented on the: “Bitcoin appears for the rich, Ethereum for the middle class, and Dogecoin for the people.”
Doge Day marks a historical moment
Dogecoin fans celebrated the 20th April as Doge Day by pushing the price of the coin to $0.420 symbolically. The fact that 4/20 was associated with the marijuana day was also not lost in the community. Although it was only for a brief moment, DOGE’s prices apparently reached their all-time high by the community.
Robinhood’s increased retail interest in Dogecoin has even caused a system failure due to the excess of orders. Robinhood even reduced the minimum order size of DOGE from 10 to 1 on April 21 to make the coin more accessible for retail investors. Investors can now stack DOGE one coin at a time.
DOGE Vs Long-term sentiment
The Co-Founder and CEO of TIE, Joshua Frank, a cryptocurrencies Social Media Platform, has revealed that Dogecoin’s social media sentiment remains strong, telling Cointelegraph:
‘Doge’s long-term sentiment went beyond the standard deviation and posting a record of 139 feeling score on January 28, 2021, following the discussion of the Dogecoin Cryptocurrency equivalent of GameStar by Redditors from r/SatoshiStreetBets. Sentiment still stands at 72, and Elon Musk’s tweets about Dogecoin helped to fuel the surge on April 14.
It’s essentially one of the oldest coins in the cryptosphere since Dogecoin was established in 2013. The token’s listing on exchanges such as Binance and OKEx has strengthened its presence in the cryptocurrency community with a better access to liquidity, creating more stable trade flows and coin buildup interest.
On Doge Day, OKCoin announced that in the last week of April, the token would be listed by the exchange. Jason Lau, CEO of OKCoin, told Cointelegraph to talk more about DOGE:
“DOGE is quite good for payments. Transactions cost less than one cent, it’s extremely fast and efficient. Although it has fewer nodes than others, it’s safeguarded through proof of work and had no safety problems.’
DOGE is now used to pay for goods owned by the renowned investment firm Mark Cuban, NBA franchise Dallas Mavericks. He said on Twitter that goods sales increased by 550 percent since the club announced that payments in Dogecoin would be accepted. He also said that the sports team would not sell and hodge any Dogecoin it has accumulated from sales.
But this increase in adoption’s sustainability remains to be seen. Lau said more: “It is important to note that the Dogecoin codebase has not been updated for several years and has not been kept active.”
Boggiano also said that the fact that Dogecoin was created as a joke for certain traders makes it fun to see whether they can be played and played on by other traders, essentially as a competitive tool:
“It may also be the crypto community ‘reclaiming’ their story. For people in the crypto community, we know that DOGE was created as a joke. It’s designed to make fun of Bitcoin. However, Bitcoin is a legitimate asset class. It turns out. This could therefore be a tool to redefine the dialog and understanding in general of cryptocurrencies.”
Could this be yet another pump and dump?
Dogecoin has been a pumping and dumping instrument in the past, so could it be another example? Without a definite maximum supply, DOGE is a very inflationary coin, which means that every year there are 5 billion new coins entering into circulation. Because of the high supply, the token constantly presses down.
In addition, Frank said that the rally was controlled by an individual entity, which has accumulated at least “1.3 billion dollars of Dogecoin’s value and misused the future market by baiting shorts in creating a negative funding cycle leading to derivatives blowouts of more than 760 million dollars.”