I like to think I have at least a rudimentary understanding of how the valuation of money works, but at every turn, the rise of Dogecoin keeps challenging that. Starting as a joke and living in relative obscurity for many years, all of a sudden Dogecoin is the biggest thing since sliced bread. One could posit for hours on how it happened, likely through a combination of pandemic exhaustion, star power, and giggles, but the fact of the matter is that Dogecoin is on fire.
As of this morning, the worth of Dogecoin has shot up another 20%, reaching a 67 cent per coin valuation. Not only is that within spitting distance of the coveted dollar-to-coin valuation, it’s also an impressive day-over-day rise; Dogecoin only just broke 50 cent valuation yesterday, so to increase another 17 cents is unprecedented.
According to Crypto firm Coinbase, Dogecoin currently has a market cap of $87 billion. That’s a higher market cap than Coinbase itself, which currently runs at $56 billion. As has frequently been the case for Dogecoin, there hasn’t been any major contributing factors to its rise. Elon Musk, one of the most outspoken proponents of the cryptocurrency, is slated to host Saturday Night Live this week, so it’s possible its reputation has been boosted by association. Beyond that, though, Dogecoin appears to have reached a point of self-sufficiency.
SNL May 8
— Elon Musk (@elonmusk) April 28, 2021
“I worry that, once the enthusiasm rolls out, there’s no developers on it, there’s no institutions coming in. But it’s got this moniker of the people’s coin right now,” Galaxy Digital’s Michael Novogratz said on Squawk Box.
“When you think about the whole theory of what this crypto revolution is, there’s something pure about what Dogecoin’s done,” Novogratz said. “It’s a little bit of a middle finger to the system.”