We witnessed recently the rise and the fall of the cryptocurrency market. Of course, this market fluctuation is nothing like the 2017-2018 era. On the other hand, Dogecoin managed not only to break through its own price barriers but was soaring in prices despite the heavy correction of all the other cryptos in the market. In fact, Dogecoin managed to grow from a price of USD 0.05 all the way to around USD 0.31, making a whopping 520% in less than a month. Why is Dogecoin booming when other cryptos are in the red? Here are 4 important reasons.
4- Coinbase IPO’s Success
Recently, Coinbase which is a major crypto exchange in the US got officially listed on NASDAQ. This is a MAJOR win for the whole cryptocurrency market worldwide, as it shows that cryptos are being legitimized by the biggest economy in the world. This not only shows long-term stability but also attracts investors. Now, what does this have to do with Dogecoin? Easy…Dogecoin is a crypto, thus its price rose in tandem with the whole crypto market.
3- A new SubReddit pumping Cryptos
After the big fiasco that happened last month in the stock market, many traders decided to partake in pumping groups. The moderators of the famous subreddit WallstreetBets noticed that many traders started to discuss crypto-related strategies on the group, which didn’t go with their original plans (being stocks-related). That’s why they started to limit crypto-related talks on the group. This gave way to a new subreddit called SatoshiStreetBets, which aims to pump cryptos. Now again, what does this have to do with Dogecoin? Easy…Go check their page, they were planning for this Dogecoin pump for a while now.
2- Google Trends showing big Dogecoin Interest
Dogecoin is a meme coin with a price that fluctuates purely from demand and supply. When there’s enough hype, it means that buyers are more than sellers, and prices in turn increase. One important factor that determines Dogecoin’s price is how much it’s being searched on the interwebz. Checking the Google Trends charts, we can clearly notice how an increase in Dogecoin-related searches is directly correlated with its price increases. We can even compare those search queries with Bitcoin and Ethereum. In the past 7 days, Dogecoin was the clear winner.
1- Elon Musk’s recent Tweets about Dogecoin
It has become apparent that Elon Musk, the billionaire who founded Tesla and SpaceX, loves Dogecoin. He is one of the biggest backers of Doge and occasionally tweets funny memes about this crypto. Interestingly, prices seem to always increase everytime Elon posts on Twitter. Recently, Elon not only was posting heavily, but he also promised to take a Dogecoin flag to outer space. This seemed to affect cryptocurrency enthusiasts, who in turn, rushed to buy this meme coin. Thanks to Elon, many became crypto millionaires.
It’s inevitable pic.twitter.com/eBKnQm6QyF
— Elon Musk (@elonmusk) July 18, 2020