Dogecoin continues to establish itself as the largest meme currency by market cap, showing signs of renewed enthusiasm every now and then. This week, the meme-inspired cryptocurrency added more than $1 billion to its market cap, making it the eighth largest cryptocurrency. This was as a result of Dogecoin surging more than 10%, increasing its market capitalization to more than $10 billion in a matter of hours.
Dogecoin pushed Solana to number 9
Dogecoin has come a long way since it was created as a joke. Driven by the hype on social media, the meme cryptocurrency rose in the global rankings to become the 8th largest cryptocurrency by market cap. Dogecoin price recently surpassed the $0.070 resistance to reach $0.076. As a result, more than $1 billion was added to the company’s market capitalization, jumping from $9.67 billion to $10.66 billion.
Although its price has now dropped to $0.074 at the time of writing, Dogecoin still has a market capitalization of $10.35 billion, pushing Solana to the ninth spot. On the other hand, Solana’s stock fell by 7% in a 7-day time frame and lost more than $1.4 billion in market capitalization.
What pays the price?
Much of Dogecoin’s previous success has mostly come from the hype on social media and a few influential people and groups promoting it. The main influence is billionaire Elon Musk. Since Musk started tweeting about the meme, Dogecoin has gained more attention from cryptocurrency investors and his tweets praising the cryptocurrency have led to a huge spike in interest and price.
DOGE price retraces to $0.73 following 10% surge | Source: DOGEUSD on Tradingview.com
The recent surge in the price of Dogecoin appears to have come from rumors of Tesla keeping the cryptocurrency in the source code of its payment page. Dogecoin is the second cryptocurrency to be accepted by a car manufacturer after Tesla added Bitcoin as an option back in 2021. However, Tesla has since discontinued the option to pay with Bitcoin and deleted the option in the source code of its payment page.
At the moment, Tesla has deleted “bitcoin” in the source code of its payment page, but still retains “dogecoin”. pic.twitter.com/BQrRtuTN8Z
WuBlockchain July 21, 2023
DOGE price prediction
Dogecoin (DOGE) is currently trading at $0.07378, ranging between $0.065 and $0.075 for the past week. If the $0.075 resistance is breached, we could see DOGE rise to the February high of $0.096.
Interestingly, the asset has bounced off the $0.060 support several times since August 2022, making it a huge support for the meme coin. So a break below $0.060 could send the DOGE index to its lowest point in more than a year.
While Dogecoin lacks the rarity of Bitcoin or the smart contract capabilities of Ethereum, it has won over an enthusiastic community of supporters and has become relatively stable over the years. However, Dogecoin is still a very volatile investment, and its value is based largely on social media hype rather than real-world utility.
Featured image from iStock, chart from Tradingview.com
