Since the beginning of 2021, DOGE has been “running” with a yield of 11.000% and nothing seems to stop it.
In fact, on January 4th, it broke the 60-cent barrier, recording a +50% yield in just 24 hours, according to Coindesk. This rise is attracting both applause and criticism, as its supporters want to push the cryptocurrency to a price close to $1, while sceptics warn that the asset has all the characteristics of a “bubble” that it will not be long before it explodes.
But why is this cryptocurrency so successful? The main reason why it seems that only “the sky is the limit” is the founder of the Tesla car industry, Elon Musk, who regularly tweets to motivate investors to buy it. In fact, they jokingly call him “Dogefather“.
Also, the new highs come a day after the announcement of the stock exchange trading platform, eToro, but also the Gemini exchange, in support of cryptocurrency, citing strong customer demand. The rapid recovery from the slip by 40% on April 23 clearly shows the “buy the dip” trend that prevails in this market.
With the highly speculative rally, the capitalisation of Dogecoin has exceeded $88 billion, making it the fourth largest cryptocurrency in the world.
In fact, another reason for the rise is the so-called investment slang FOMO (Fear of Missing Out). In other words, investors’ fear of being left out of the rally is also said to be behind the cryptocurrency “boom”.
Some crypto participants speculate that the rise of dogecoin is supported by small shareholders who see the currency as a more affordable investment than other crypto currencies, like Bitcoin.