The cryptocurrency that was born as a joke of the famous meme increased its trading volume by almost 56% in the last 24 hours.
The price of dogecoin soared more than 25% on Tuesday, raising the value of the cryptocurrency originally designed as a hoax to nearly $ 0.10 per coin, as both the price and popularity of the cryptocurrency reach historic levels.
At 2 pm. On Tuesday, dogecoin was trading at around $ 0.09 per coin, just below a record high of more than $ 0.095 just before 1 p.m.
At its all-time high, the price was up more than 25% since the start of the day, mainly driven by a massive midday surge that took the price below $ 0.08 late in the morning to $ 0.095.
The price escalation comes amid a significant increase in the volume of its trades, which according to CoinMarketCap increased 56% in the last 24 hours.
Background
Major cryptocurrencies like bitcoin and ethereum have also soared to record highs, with bitcoin surpassing $ 63,000 for the first time on Tuesday morning. Retail investors have been extremely bullish lately when it comes to cryptocurrencies, ahead of the highly anticipated initial public offering for cryptocurrency exchange Coinbase happening this Wednesday.
This despite the fact that the vast majority of fund managers believe that high prices are the result of a bubble. The use of cryptocurrencies as a form of payment has also gained much more acceptance among large companies lately, including firms Tesla and PayPal.
Dogecoin, as one of the smallest crypto tokens, has been subject to much greater volatility than its more conventional counterparts such as bitcoin and ethereum. Some of the biggest spikes for dogecoin came immediately after Elon Musk mentioned it on Twitter, for example.
Surprising fact
The creators of Dogecoin intended their crypto concept to be a joke, based on the famous Dodge dog meme. But the cryptocurrency has become immensely popular, especially among Redditors who are largely credited with the rise in GameStop shares earlier this year.