The broader market trend of Dogecoin continued to surge today, growing to an all-time high of over $0.42 even as other cryptocurrencies continue to struggle after they plunged over the weekend. The plunge was attributed to the decline in crypto excitement after the $100 billion direct listings of cryptocurrency exchange, Coinbase.
The cryptocurrency meme, which came into the market originating from a joke in 2013, grew 33.9% in the 24 hours.
Virtual Currencies Plunge Over the Weekend
On Sunday, Bitcoin, the world’s largest cryptocurrency, plummeted by 15 percent, just days after a $64,869 high.
Bitcoin settled at around $56,500, well off recent highs on Monday morning. The speculation is that the BTC price fell because of the so-called buying the allegations and selling the news. Ideally, before a big news event, financial assets appear to rally and withdraw after the event.
Another addition to the dive will be profit taking. This year, the Bitcoin price has more than doubled. A slight decline usually leads to more sales by retail traders as a highly volatile asset.
Ether, the second biggest, fell to less than $2,000, as much as 18% before they also paired losses. Binance Coin, XRP, and Cardano were also affected by the volatility. During the weekend, the price of Ethereum dropped primarily due to Bitcoin’s sharp fall. In most cases, when the BTC falls, ETH and other currencies generally fall.
There was speculation on Sunday that the crypto plunge was linked to US concerns in many online reports that the treasury may target money laundering through digital assets. The Treasury refused to comment, and in its email response on Sunday, its Financial Crimes Enforcement Network (FinCEN) said that it does not comment on future inquiries, even whether one exists or not.
Behind the Dogecoin Success
Dogecoin is an asset based on blockchain technology that was started in 2013 by software engineers as a joke. The Shiba Inu dog meme inspired its name.
According to Adam Levine, head of podcasts at Coindesk, the big rally is connected with celebrities and the ethos of the meme. There seems to be an accord unofficially among Elon Musk, Slim Jims, Mark Cubans, and a significant part of meme culture that Doge is the joke currency to beat. So, everyone who wants a joke currency gets it, and because of it, it gets tons of media attention in a self-reinforcing cycle.
But several analysts caution buyers that they can stack at high prices in Dogecoin. Freetrade analyst David Kimberly said people buy the cryptocurrency not because they think it’s worthwhile but because they expect others to stack up on it, drive up to it, then sell out, and get a fast buck.