Dogecoin (DOGE) has seen a meteoric rise in its value over the past few weeks. Netizens across the globe have been piling in on the cryptocurrency which initially started out as a joke, based on the popular Doge meme. The current market cap is a staggering $48.9 billion (£35bn) with the price currently standing at $0.379126.
Such has been the rapid rise of Dogecoin, which started the year at around $0.008 mark, that Twitter users have tried to turn today, April 20, into 'DogeDay' to celebrate its huge jump in value.
One expert has now revealed that the cryptocurrency has captivated the good will of the people and brought people together during tough times during the Covid pandemic.
As such, he believes the coin still has the potential to rise even further, and will one day hit the $1 mark, representing an increase by almost a factor of three on the value right now.
Cryptocurrency expert Sam Onigbanjo told Express.co.uk: "Dogecoin is bullish and seems to keep appreciating by the day.
"The big target is $1 and seems achievable primarily because people are excited and need a new wave of economic prosperity.
"Many people feel they they missed the ride on bitcoin and have identified American Dogecoin, highlighted by Elon Musk, as the next cryptocurrency that will generate wealth and a feel good factor around the gloom of the 2020/21 Covid virus.
"The key reason Dogecoin will go up is the will and belief of the people that Dogecoin can change their wealth status."
Other experts are not so convinced by the future of Dogecoin.
READ MORE: Could SafeMoon overtake Dogecoin? Crypto skyrockets
David Kimberley, analyst at Freetrade, gave a damning review of the cryptocurrency, and believes the price hike is merely a flash in the pan.
He said: “Dogecoin’s rise is a classic example of greater fool theory at play, Dogecoin investors are basically betting they’ll be able to cash out by selling to the next person wanting to invest.
"People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up and then they can sell off and make a quick buck.
"But when everyone is doing this, the bubble eventually has to burst and you’re going to be left short-changed if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.
"This is doubly the case in the crypto markets where a small group of players often hold a huge chunk of the total number of ‘coins’ in circulation.
"That means it only takes one person to dump all their holdings for the entire market to tank.
"The latest uptick in Dogecoin’s price isn’t indicative of any meaningful value the cryptocurrency offers, it’s just a surge in interest from people looking to get rich quick.
"That can make for a fun bet, but it’s not good investing. And if you’re the one left holding on to the coins when the market tanks, you may regret taking a punt in the first place.”
0 Comments