For weeks, the price of Bitcoin was steadily rising. For weeks, Ether and other altcoins were following along. Money was flowing into crypto markets with no apparent end in sight, and then.
Within the past 24 hours, crypto’s total market cap has shed some $200 billion, falling from $2.1 trillion to $1.9 trillion, approximately 9.52 percent. Simultaneously, the price of Bitcoin has fallen more than 5 percent, dropping through the $60K support line for the first time in nearly a week. Altcoin markets have followed suit: the total altcoin market cap has dropped from $1.032 trillion to $924 billion, a loss of roughly 10.5 percent.
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Meanwhile, there is one crypto asset that seems to be defying the odds, for better or for worse.
Indeed, while other altcoins are facing steep corrections, Dogecoin (DOGE) is surging. The price of DogeCoin rose nearly 20 percent in the 24 hours before press time and is up 450 percent over the past seven days.
The coin has been the subject of much controversy since the start of the year. For one thing, its returns are absolutely jaw-droppingly high. The price of DOGE has risen from $0.004886 on January 1st to $0.41 at press time, an increase of more than 8,200 percent.
The coin’s proponents, who count the likes of Elon Musk, Snoop Dogg and Gene Simmons among them, are continuing to sing DOGE’s praises. SouljaBoy appears to be the latest celebrity to have jumped on the train with a simple, one-word acknowledgement of DogeCoin.
— Soulja Boy (Draco) (@souljaboy) April 19, 2021
What’s Next for Dogecoin?
However, while Dogecoin may be gaining popularity in the short term, the coin’s long-term trajectory is impossible to determine.
As such, it could be that Dogecoin is just one among “a number of altcoins [that] are experiencing unwarranted price increases,” said Jack Campbell, CPA and Founder of Executive CPAs, to Finance Magnates.
“[…] The rise in altcoins is a classic example of the greater fool theory. The idea is that you can make money from buying overvalued securities because there is usually someone else (the ‘greater fool’) who is willing to pay an even higher price.”
Do you think that Dogecoin’s rise is an example of the ‘greater fool’ theory, or is there more at play? Let us know in the comments below.