Doge takes over the worldDogecoin crashes back into the crypto calm with a jump of almost 40% this week on the back of its Coinbase listing and – guess what – another Elon tweet (shocker).
The Doge-hype is back after Coinbase, one of the biggest crypto exchanges on the planet, sent prices soaring by listing the joke currency on its professional version this week. Part of the draw to cryptos is that there is no gatekeeper involved and control is decentralized, but Coinbase is still able to play a big role in which cryptocurrencies get broadly accepted and which get left behind. Coinbase listings can cause wild price swings; so much so that the term “the Coinbase Effect” was coined. Doge certainly seems to back the theory, though it’s not just the listing that has prices on the rise.
Michael Stark, research analyst at broker Exness explained.
You probably aren’t super surprised to read Musk’s name alongside the words “Doge” and “tweet” anymore, but his snippets are still sending prices wild. The tech genius had a couple of new things to say about Doge this week – ever thought about how great a hot tub powered by Doge mining might be? But the one that really got people excited was was his response to a meme showing Dogecoin taking over the global financial system...
If you don't follow him already, now’s probably the time.
Downward DogeDogecoin is swiftly changing direction this week, heading straight back down to earth with a 30% drop on the back of China’s crypto crackdown.
In the country's latest attempt to reign in its growing digital trading market, China has given warning to investors against speculative crypto trading and banned all financial institutions and payment companies from providing services related to cryptocurrency transactions. It's already banned all crypto exchanges and Coin Offerings, although hasn't yet stopped individuals from holding cryptocurrencies.
Almost every digital currency that exists took a nosedive this week – Ethereum lost almost as much as Doge with a 27% drop, and Bitcoin saw lows of $30,000 after hovering near $60,000 just a few weeks ago.
But all three saw fairly quick double digit rebounds, so there might not be cause for concern just yet. HODL?
Doge jumps as Elon joins the teamOne of the biggest influencers in the crypto world is making waves again – Elon Musk gives Dogecoin a little love, working with its developers to improve the joke currency, and the price inevitably bounces.
The Dogefather has been neglecting his little Dogebaby the past week, instead focusing his market-moving tweets on Bitcoin and its environmental impacts. However, Elon is well known for nurturing his pet projects and Dogecoin is now back on board. The tech billionaire tweeted late on Friday May 14 that he is working with Dogecoin developers to improve its system transaction efficiency, sending prices up 14.69%. The market cap of Dogecoin spiked to $10 billion after the tweet.
Further boosting the stock price on Thursday was news that Coinbase, the biggest cryptocurrency exchange in the U.S., is planning to list Dogecoin within the next 6 to 8 weeks. A lot of traders have have been flocking to Robinhood and its zero-fee investing, but a spike in Dogecoin trading has been causing crashes on the app in times of high trading. The Coinbase move will hopefully give Dogecoin a wider pool to trade and lead to more activity.
In the last six months, Dogecoin has rallied over 26,000%, before falling slightly when Elon Musk referred to it as a hustle on SNL last weekend.
SNL performance sees prices plummetElon is back at it, but this time it’s not good news. A combo of his controversial Saturday Night Live hosting debut, and his announcement that SpaceX will accept Dogecoin as payment for a moon mission next year (yes, really) leaves investors unimpressed, and prices lose nearly 25% in three days.
The self-proclaimed “Dogefather” took to the SNL stage over the weekend, and the advance hype drove a crypto craze that sent Dogecoin prices soaring. He dropped a bunch of little clues on his Twitter account suggesting that Dogecoin might make an appearance during his skit, including a picture featuring Miley Cyrus, Kid Lario... and the now infamous Dogecoin dog.
Never one to disappoint, Musk indeed brought up the currency, but not in the way people were hoping. When asked “what is Dogecoin,” he replied:
But cast member Michael Che countered, "So, it's a hustle?" and Musk replied:
The market didn't find it quite as funny – and the currency promptly tanked, with prices plunging over 30% during the performance. Goddamit, Elon.
But don’t worry, the inevitable u-turn arrived swiftly, and in a recommitment to the joke currency, the next day Elon tweeted the news that SpaceX will launch the satellite Doge-1 to the moon next year: a mission that can be paid for in Dogecoin, making it the first crypto in space. Just imagine the memes… we can already see the Shiba Inu in a space helmet.
Give a Doge a bad name...Dogecoin really is man’s best friend right now, making further gains this week on what has already been a completely crazy year, driven mainly (but not entirely) by the Elon Musk effect. It might be a joke token but Doge has been posting some serious numbers. Emperor’s new clothes or actually kinda cool? You decide (because we sure as hell can’t tell).
For those of you who aren't yet familiar with the coolest crypto in town (e.g., if you’ve been living under a rock for the past year), it was originally started as a joke version of Bitcoin. The creators wrote the code in a couple of hours and set up a website filled with cute dog memes. Because, you know, who doesn’t love a cute dog meme.
Fast forward to today though, and so many traders are piling onto the bandwagon that the Robinhood app crashed this week thanks to the investing surge. The same thing happened on April 16, when Robinhood warned that enthusiasm for Dogecoin had led to “sporadic crypto order failures.” Not great for Robinhood but super great for Doge.
But why the crazy jump? Well, it’s hard to say for sure, but the coin has basically benefited from the madness of the social media age. An internet meme with a pic of a Shibu Inu (a dog) is what originally garnered attention for the crypto, and is now the crypto’s mascot 🐕🐕. But what really propelled it into the stratosphere was, surprise surprise, Elon Musk and his tweets (how is it that Elon always find himself in the middle of these things?)
In 2019, a random poll decided that Musk should be the chairman of Doge, and instead of getting the heck outta there he saw the funny side, and has since then played along with the whole ordeal, tweeting out support for Dogecoin and giving it gain after gain. In April 2021, he tweeted that he planned to “put a literal Dogecoin on the literal moon" which sent the price of the currency rocketing up by 35%. He also called himself “The Dogefather” when announcing his upcoming SNL appearance, making investors think that the skit might be Dogecoin related – which would give the coin a profile worth barking at.
For a crypto that started as a joke, the chaos it's creating is very serious. The currency’s value has soared by over 14,000% since the beginning of this year (yep, you read that right), now sitting at around $0.60. With a market cap of around $78 billion, it’s currently (amazingly) the fourth largest cryptocurrency... though it’s still got a ways to go to compete with the Big Two, Bitcoin and Ethereum.