Dogecoin, which has become very popular in recent times, mainly due to reports by Elon Musk, traded above $0.60 on Thursday, setting its market cap at $78 billion. That puts $4 billion more than the estimated valuation of SpaceX, according to recent SEC records.
Last week, Musk hinted that he would refer to the cryptocurrency during his upcoming Saturday Night Live appearance, tweeting: “The Dogefather SNL May 8″.
Dogecoin’s latest price rally has seen its value increase by more than 30.000% over the same period last year, despite cryptocurrency experts claiming that the underlying technology and overall utility are second-rate compared to other cryptocurrencies, such as bitcoin or Ethereum.
“We all know that the world of cryptocurrencies is just as crazy and volatile. Social media has been a major factor in the development of dogecoin; it has become a revolutionary currency,” said Antony Portno, founder of the information site Traders of Crypto.
In its monthly market report released Wednesday, Kraken attributes the new popularity of dogecoin to the “meme stock” culture driven by online retail investor forums on sites like Reddit.
Many fear that a massive sale at this point could cause a spectacular price drop similar to that observed in 2018, when the price of dogecoin fell by more than 80%.
Despite its volatility, some analysts remain optimistic about the potential of dogecoin in 2021.
