Dogecoin Is Holding Onto Its Blistering 3,000% Price Gains
Meme lovers across the world are rejoicing as the ‘joke’ cryptocurrency Dogecoin is managing to hold on to its 3,000% price increase.
Inspired by the iconic ‘doge’ meme, Dogecoin came to fruition with the rise of cryptocurrency and lingered for years below 10 cents in value until it began rising last week, when it exceeded 10 cents for the first time ever.
It has rocketed 3,000% so far this year, adding almost 400% in the last seven days, with its market capitalisation peaking at around $50 billion as it soared into the cryptocurrency top five, partially thanks to Elon Musk’s bizarre approval of the currency.
Those who invested early in the cryptocurrency saw their efforts begin to pay off as it continued to rise, and so far Dogecoin has managed to hold steady in what is known to be a volatile environment.
California-based cryptocurrency exchange Uphold has reported the number of its users buying Dogecoin has doubled in the past week, according to Forbes, though experts have warned that those attempting to jump on the bandwagon could end up regretting their actions.
David Kimberley, an analyst at UK-based trading app Freetrade, described the Dogecoin rise as a ‘classic example of greater fool theory at play’.
Speaking to Forbes about the growth, he said that Dogecoin investors are ‘basically betting they’ll be able to cash out by selling to the next person wanting to invest’.
He explained investors are relying on the increased popularity of the cryptocurrency to drive up the price and allow them to make a profit, but when everyone is attempting to do the same thing, the ‘bubble eventually has to burst’ and investors could be ‘left short-changed’ if they don’t get out in time.
Unfortunately, Kimberley warned, ‘it’s almost impossible to say when that’s going to happen.’
While Dogecoin holders are no doubt enjoying their success for now, let’s hope they keep the long term in mind when it comes to their money.
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