Dogecoin Jumps 600% as ‘Meme’ Crypto Rides GameStop Retail Wave
Dogecoin, which started as a joke, is now the seventh-most valuable cryptocurrency.
Cryptocurrency Dogecoin, which began as a ‘joke’ cryptocurrency based on a popular internet meme from nearly a decade ago, is riding the retail investor wave into the top 10 cryptocurrencies ranked by market value.
Dogecoin’s value was up about 600% over the last 24 hours, jumping to a valuation of $0.072 per coin as of Friday morning.
The digital currency’s rise this week has pushed its total market value to about $9 billion, making it the seventh most valuable cryptocurrency, according to CoinMarketCap data. Bitcoin leads the pack with a total market value of about $160 billion.
On Thursday, Bloomberg reported users on the Reddit thread SatoshiStreetBets were touting their gains, with one user saying “Doge = the crypto GME,” with “GME” referring to GameStop (GME) – Get Report, the struggling video game retailer whose value has been incredibly boosted by retail investors recently.
On Thursday, Dogecoin had a market capitalization of just $1.4 billion, according to CoinGecko.
Prior to the Reddit-driven frenzy that has lifted the value of stocks recommended by SatoshiStreetBets by more than 700%, GameStop was looking to find a pivot that would give it a slice of the download market while trying to entice customers to its stores during a pandemic.
GameStop shares have risen 1,700% since then, including Wednesday’s surge of 135% that has the stock changing hands at about $350 each now and that values GameStop at almost $24 billion.
Citron Research, one of the most high-profile short-sellers on Wall Street and one of the initiators of the GameStop phenomenon, said it will no longer produce reports that urge investors to bet against stocks.
The group, lead by Andrew Left, was initially targeted by retail investors from the Reddit chatroom WallStreetBets for its views on GameStop.