Dogecoin Price Spikes; Is It a Speculative Bubble?

On Wednesday, April 28, the digital currency market was abuzz when Dogecoin’s price skyrocketed by 20% within 24 hours, reaching 32 cents after a cryptic tweet from Tesla founder Elon Musk and billionaire Mark Cuban.

The Tesla founder, who occasionally mentions crypto on his tweet, claimed himself as “The Dogefather” in his latest tweet along with the promotion of his planned appearance at “Saturday Night Live” on May 8.

Similarly, Dallas Mavericks billionaire and TV personality Mark Cuban praised the currency and said the team would complete 6, 0000 Dogecoin this month. Cuban said, “Dogecoin is one of the coins used by people for transaction purposes. People are spending, which means more businesses are on the pipeline.”

This meme-inspired digital currency was making record-high profits and was credited to be 45 cents this month.

By around 6.50 pm IST, Dogecoin was trading at 15.5% at the rate of $0.32. This digital asset currently holds a market size of around $41 billion and is the 6th largest crypto coin globally.

However, some investor analysts aren’t in favor of this crypto coin. David Kimberley, an analyst at UK’s investing app Freetrade, said, “Dogecoin is the perfect example of investment fool theory. People buy these coins not because they consider them as a valuable asset, but with the hope of piled up cash and sell back to earn quick money.”

Revenue Generation by Dogecoin Miners

Although analysts aren’t in favor of this digital coin, Dogecoin miners claimed to have earned a reasonable price out of it. The revenue earning of Dogecoin miners has raised by 4,500% in 2021 itself. According to market research, mining the coin can bring $3.6 million in revenue. Many assume that miners, who operate on cash, sell their coins instantly to earn high rewards.

One such classic example is 33-year old Los Angeles resident Glauber Contessoto claimed to have earned millions within 69 days.

In a YouTube video statement, Glauber said he invested $180,000 on February 5, 2021. Within 69 days of investment, his income rose to $2million. At the time of acquisition, the Dogecoin price was $0.045, which increased to $0.45.

In the video, he further claimed that Elon Musk was his inspiration for the Dogecoin investment.

Will DOGE record a new ATH in the near term?

According to Dogecoin forecast and looking at the current market status and its previous ratio, Dogecoin, in the near term, will have a great run in the crypto market. In the last month, Dogecoin was 330% high and gained a vast 1,589.72%.

Despite this massive growth, the circulation of 128 billion DOGE and the mysterious address holding 36 billion coins may help investors to get a clear idea about the future ATH of this meme-faced digital asset.

Dogecoin was introduced in the year 2013 and had the image of a Shiba Inu Dog. The brainchild of tech experts Billy Markus and Jackson Palmer started as a joke but ended up trading for around $0.000232. DOGE has been witnessing more and more investment from investors, leading to an increase in an all-time-high price.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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