5 May 2021
Dogecoin continues its incredible turnaround; its Market cap is now worth more than Twitter. It looked like the DOGE train had run out of steam during late April’s sell-off, but now its market cap is nearly double, just below $50 billion, in less than two weeks.
Elon Musk’s involvement is a key factor in all of this price run. Reportedly, the Tesla billionaire will also mention Dogecoin during his up-and-coming appearance on Saturday Night Live on May 8. On a fundamental level, there’s also the fact that more merchants have started accepting the meme token as a payment method.
In defiance of convention, Dogecoin continues to hit another milestone, even managing to surpass Cardano in the process. YTD gains currently stand at 7,800%. Following the recent market sell-off, a strong recovery from DOGE set a steep uptrend in price in motion.
Analyst Kas1a charted DOGE on a 4-hourly, claiming that this run is “unstoppable.” His analysis shows a price trend respecting an upwards grind line that formed during the recent dip. The price levels above 13, 50, and well above the 200 and 800 EMAs, and the case for a $1 DOGE looks increasingly possible.
Dogecoin co-founder Billy Markus said a $1 DOGE is not something he can wrap his head around. Dogecoin was created in a matter of hours and was always intended to crack against the ultra-serious cryptocurrency industry, not a project outdoing Twitter.
It gets even more absurd. A look at current company market caps shows DOGE at a striking distance of Volvo, Honda, and Philips Electronics. All of which provide excellent goods and services to millions of people.
Markus cannot explain how or why his creation has gotten to where it is today. However, he raises the possibility that we no longer live in reality. “Maybe it’s that Dogecoin can be a good barometer for how far from reality things can get.”
Commenting on Dogecoin’s rise, IOG CEO Charles Hoskinson labels this situation as a bubble. He attributes its price-performance to Elon Musk and market manipulation by “clever whales.”
“Let’s be very clear, this is a bubble. The price of DOGE is not sustainable, it’s going to collapse and a massive amount of retail money is going to be lost very quickly.”
When things go against DOGE, Hoskinson fears that regulators will be forced to take action, resulting in stricter regulation for the entire cryptocurrency industry. However, DOGE has proven more resilient than Cardano. Maybe it’s time to accept that fundamentals no longer matter.
Disclaimer: The author’s views and opinions are for informational purposes only and do not constitute financial, investment, or other advice.