Dogecoin, a cryptocurrency that was started as a joke, is now the world’s fourth-largest cryptocurrency behind bitcoin, Ethereum and Binance coin. On Tuesday, Dogecoin surged 50%, thanks to a crazy frenzy of investors who are striving to push the coin value by over $1.
Another reason for Dogecoin’s jump is much-awaited SpaceX founder Elon Musk’s appearance as the host of American live television sketch comedy and variety show, Saturday Night Live (SNL), on Saturday.
Crypto trading platforms like Robinhood and India-specific platform WazirX crashed due to the Dogecoin frenzy, which was extended to other coins as well. Between May 4 and May 5, Dash spiked 14% and Ethereum Classic jumped over 30+.
Ethereum’s growth has come in the aftermath of growing institutional interest in cryptocurrency. Institutional investors are now seeing the crypto market as a potential investment source.
Chad Oviatt, director of investment management at Huntington Private Bank told Bloomberg, “You have money looking for a home and this is one of those areas of the market where there is speculation happening, there is significant appreciation happening in a short period of time.”
Dogecoin was founded in 2013, based on a wildly popular ‘doge’ meme. Dogecoin’s creator had all sold his coins in 2015 to buy a Honda Civic. Today, the coin’s total value is more than Honda and even more than most Indian firms, except Reliance Industries, TCS and HDFC Bank.