Dogecoin, a cryptocurrency started in 2013 as an internet meme, has risen in value just like the virtual currencies Bitcoin and Ethereum this week.
According to CoinGecko, Dogecoin price a cryptocurrency that began as a joke, is now a top-ten digital currency with a market cap of around $39 billion.
When it comes to Bitcoin it is considered important because of its small supply of 21 million coins. This scarcity is used by supporters to support the belief that Bitcoin’s value will surge over time.
While the circulating supply of Dogecoin is actually just under 130 billion coins, and there is no set supply. The estimated annual inflation rate is 5.3 billion tokens.
Another explanation for its current popularity is a Reddit community named SatoshiStreetBets, whose members developed a passion for cryptocurrency in a similar way to how GameStop rose to prominence earlier this year.
Dogecoin co-creator Billy Markus also commented on his project’s rise to fame, saying he can barely imagine it has taken off the way it has. He said crypto markets are trying to determine fair valuation, implying Dogecoin’s ascent is simply a symptom of price discovery.
Dogecoin is clearly having a moment. Is the moment, however, going to last? What will it be worth, and how much will it be worth? These things remain unclear while dogecoin still enjoys the momentary stardom.
CRYPTO BULL MARK CUBAN SUPPORTS DOGE!
Cuban tells CNBC that he is fully aware that supply and demand are unstoppable for dogecoin. And as a result, it will find its level. Cuban had announced in March that his NBA team, the Dallas Mavericks, would accept dogecoin for transactions, and sales of the cryptocurrency have risen by 550% in the last month, according to a tweet from Cuban on Tuesday.
FYI, the Mavs sales in @dogecoin have increased 550pct over the past month. We have now sold more than 122k Doge in merchandise ! 🚀🚀🚀 We will never sell 1 single Doge ever. So keep buying @dallasmavsshop https://t.co/li32cdtcED
— Mark Cuban (@mcuban) April 14, 2021