The meme-based cryptocurrency that started as a joke and a way to poke fun at Bitcoin has recently become one of the hottest block-chain vehicles available.
Dogecoin hit an all-time high on Tuesday, April 20, with a market capitalization over $50 billion, making it bigger than some blue-chip companies including Ford and Marriot.
The rally comes after social media fans and influencers used Dogecoin hashtags to fuel a rally.
Advocates are hoping to see Dogecoin hit $1 on April 20, one week after it was valued at just $0.09.
Dogecoin has already seen an 8,000% price surge this year, and while it represents only a fraction of Bitcoin’s $1 trillion value, it can be traded on crypto exchanges and mainstream trading apps.
Dogecoing fans used the hashtags #DogeDay and #DogeDay420 to post memes, messages and videos on Twitter, Reddit and TikTok.
“It’s an extension of the same phenomenon that has led Tesla stock to be valued well beyond fundamentals and more recently to the GME (GameStop) short squeeze,” said Ajit Tripathi, head of institutional business at decentralized finance startup Aave.
Like other cryptocurrencies, Dogecoin’s price is heavily influenced by social media users, including Elon Musk, whose tweets on Dogecoin in February send its price up over 60%.
The most recent surge though has nothing to do with Elon Musk, but comes from a highly unlikely source, Slim Jim.
The packaged snack meat company tweeted last Wednesday “RT to send Doge to the moon!!” And soon after, other companies including Snickers jumped on the Doge bandwagon.
Dogecoin has had a value of half a cent for most of its seven-year history. Ten thousand new Dogecoins are programmed to be issued every minute, meaning the value will never truly hold.
However, at least one person or company might be making real money on the surge. In February, word got out that an unknown entity currently holds 28% of the Dogecoin in circulation. At Doge’s high point, that’s worth nearly $5.6 billion.