Forget the Bitcoin price, the Dogecoin price is on fire!

The Dogecoin (CRYPTO: DOGE) price is rocketing, up 90% over the previous 24 hours alone.

At the present 24 cents, Dogecoin now ranks as the eighth largest cryptocurrency in existence, with a market cap of US$23.4 billion (AU$30.4 billion).

That’s in accordance with knowledge from CoinMarketCap, which additionally tells me that, whereas Dogecoin doesn’t commerce on the newly listed Coinbase Global Inc (NASDAQ: COIN), you possibly can flip to crypto exchanges Binance, Huobi Global, OKEx, FTX, or CoinTiger, amongst others.

Why is the Dogecoin price heading for the moon?

Back on 1 January this 12 months, you might have picked up a single Dogecoin for lower than half a cent. Or 0.469 cents, to be exact.

At the time of writing – and it’s altering virtually minute by minute – the Dogecoin price is 23.8 cents. That’s a acquire of – await it – 4,996% since we awoke to have fun the new 12 months.

The Bitcoin price, by comparability, is up a extra sedate 118% to this point in 2021.

So, what’s driving the Dogecoin price to the moon?

Certainly, Dogecoin has benefited from the broader cryptocurrency bull run of late, which have pushed Bitcoin and Ether (the quantity 2 crypto by market cap) to new document highs as effectively.

That bull run will be attributed to a wider involvement in cryptos by institutional buyers, alongside rising investor unease that central financial institution and authorities stimulus efforts will see a surge in inflation in world fiat currencies.

On the institutional facet, this week’s itemizing of crypto alternate Coinbase on the tech-heavy Nasdaq supplied a lift for many of the main digital property.

The billionaires’ enhance

And let’s not neglect Elon Musk.

The Tesla Inc (NASDAQ: TSLA) founder earlier this 12 months was credited for aiding Bitcoin’s price rise when he introduced that Tesla would settle for Bitcoin for its automobiles. And that the firm would maintain onto these Bitcoin slightly than exchanging them for {dollars}.

Musk is additionally credited with offering some robust tailwinds for the Dogecoin price.

On 1 April (sure, April Fool’s Day), the Tesla billionaire tweeted “Doge Barking at the Moon”, together with a picture of simply that. The implication was broadly believed to imply that Musk anticipated the Dogecoin price to rocket.

As certainly it has.

Speaking of billionaires, let’s not neglect Mark Cuban. He’s the proprietor of the US basketball crew, the Dallas Mavericks. His NBA crew started accepting Dogecoin for funds final month.

On Wednesday, 14 April, Cuban appears to be like to have stirred the coals underneath the Dogecoin price when he tweeted:

FYI, the Mavs gross sales in dogecoin have improve 550pct over the previous month. We have now offered greater than 122k in Doge in merchandise! We won’t ever promote 1 single Doge ever. So preserve shopping for.

And if the Dogecoin price wanted much more institutional assist, it acquired it from Conagra Brands Inc‘s (NYSE: CAG), Slim Jim model.

As CoinDesk studies:

Smoked meat stick vendor Slim Jim has an precise official dogecoin strategy

The social media-savvy snack meals noticed its Twitter follower depend improve 160% and tweet impressions soar to the moon (35 million impressions in 25 days) after it started partaking in Shiba Inu meme coin content material final quarter, in accordance with the CEO of dad or mum firm Conagra Brands.

“We’ve seen a marked uptick in viewers interplay, together with direct engagement and advocacy from the particular person [who] created dogecoin,” CEO Sean Connolly mentioned on Conagra’s April 8 earnings name. 

A little bit of historical past

Dogecoin was created by the US’ Billy Markus and Australia’s Jackson Palmer. The firm emerged from (or was forked from, in crypto parlance) Litecoin in 2013. Based on a canine meme, they supposed the altcoin to be a light-hearted model of the extra critical cryptos, like Bitcoin.

Unlike Bitcoin, which is capped at a complete remaining provide of 21 million as soon as the final digital cash have been mined, the Dogecoin provide is uncapped. That means doubtlessly an infinite quantity of Dogecoin may very well be mined.

What that can imply for the Dogecoin price longer-term, stays to be seen.

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Bernd Struben has no place in any of the shares talked about. The Motley Fool Australia’s dad or mum firm Motley Fool Holdings Inc. owns shares of and recommends Bitcoin and Tesla. The Motley Fool Australia has no place in any of the shares talked about. The Motley Fool has a disclosure policy. This article incorporates common funding recommendation solely (underneath AFSL 400691). Authorised by Bruce Jackson.

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