Dogecoin surges 30% to a record above 50 cents as speculative crypto trading continues

Dogecoin, the cryptocurrency based mostly off a viral canine meme from almost a decade in the past, surged 30% on Tuesday to set a new record excessive at greater than 50 cents per coin.

The cryptocurrency was trading at about 54 cents, in accordance to knowledge from Coin Metrics. Dogecoin rose to roughly 40 cents per coin final month earlier than falling sharply for a number of days after the calendar turned to April 20, a date broadly celebrated as a marijuana-themed vacation.

Dogecoin was began as a joke in 2013 amid a increase in early cryptocurrencies. It was based mostly on a fashionable web meme on the time that featured a Shiba Inu canine and cartoon-style textual content over the picture. Its rise in latest months has been highlighted by many as a signal of froth and hypothesis within the monetary markets, significantly amongst youthful buyers who began trading throughout the pandemic.

The coin has been boosted in recent weeks by billionaires Elon Musk and Mark Cuban, who’ve each talked about Dogecoin on Twitter a number of instances. Cuban has stated the elevated curiosity and use in Dogecoin has made it greater than a joke.

“Meme coins like Doge only work if they gain utility and users use them for that utility. As long as you can spend Doge, because we know it’s annual inflation rate is set at 5b coins, it can gain SOME value as the utility grows. It becomes like any other currency,” Cuban stated Sunday on Twitter.

“As long as more companies take doge for products/services, then Doge can be a usable currency because it MAY hold its purchasing value better than a $ in your bank. If interest rates skyrocket or the amount spent falls or stagnates, so will Doge. Yes, a joke is now legit,” he added.

Another crypto asset that set a new high on Tuesday was Ether, the foreign money linked to the Etherum blockchain. Bitcoin, nevertheless, slipped greater than 6%.

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