Yuriko Nakao | Getty Images News | Getty Images
Dogecoin, the cryptocurrency based on a viral dog meme from nearly a decade ago, rose 30% on Tuesday, setting a new record at more than 50 cents per coin.
According to Coin Metrics, the cryptocurrency was quoted at around 54 cents in midday trading and rose by around 30% that day. Dogecoin surged to around 40 cents a coin last month before falling sharply for a few days after the calendar turned to April 20th, a date widely celebrated as a marijuana-themed holiday.
Dogecoin was launched in 2013 as a joke amid a boom in primitive cryptocurrencies. It was based on an internet meme popular at the time that featured a Shiba Inu dog and cartoon-style text above the picture. The surge in recent months has been highlighted by many as a sign of foam and speculation in the financial markets, especially among younger investors who started trading during the pandemic.
The coin has been topped up in recent weeks by billionaires Elon Musk and Mark Cuban, both of whom have mentioned Dogecoin multiple times on Twitter. Cubans have said that the increasing interest and use of Dogecoin have made it more than a joke.
“Meme coins like Doge only work as they grow in utility and users use them for that utility. As long as you can spend Doge, knowing that the annual inflation rate is fixed at 5 billion coins, it can increase in value as the utility increases win. It will be like any other currency, “Cuban said on Twitter on Sunday.
“As long as more businesses are using Doge for products / services, Doge can be a viable currency as it may hold its purchase value better than a US dollar in your bank. When interest rates skyrocket or the amount spent drops or stagnates, it will Doge do this too. ” Yes, a joke is real now, “he added.
Another crypto asset that hit a new high on Tuesday was Ether, the currency linked to the Etherum blockchain. However, Bitcoin was down more than 6%.
Become a smarter investor with CNBC Pro.
Get stock picks, analyst calls, exclusive interviews and access to CNBC TV.
Sign in to start a free trial today.