Dogecoin’s surge saw its market value exceed US $ 48 billion

Source: Bloomberg | Editor: Khomarul Hidayat

KONTAN.CO.ID – NEW YORK. Dogecoin is a byword. This cryptocurrency has gone crazy in price after being pushed by the likes of Elon Musk and Mark Cuban.

Quoting Bloomberg, Friday (16/4), Dogecoin price rally about 180%. According to CoinMarketCap.com, Dogecoin’s price spike brought its market value to over US $ 48 billion.

Dogecoin’s price has skyrocketed 18,000% from last year when it was trading at US $ 0.002 and is still worth around US $ 250 million.

The Dogecoin boom is part of the rise in altcoins, the term for all the digital tokens that have sprung up imitating Bitcoin.

Also Read: These are some of the reasons Dogecoin is the most traded crypto asset

Like most of them, their use cases are limited, making them a tool for speculators and raising concerns that a bubble is rising in a crypto world that is now worth more than US $ 2.25 trillion.

“It reminds me of the dot com days. We know something big is going on, lots of investors are chasing it hard. That’s causing a bubble, ”said Scott Knapp, chief market strategist at CUNA Mutual Group.

“For every Amazon.com there are 10 pets.com that go bankrupt. Is Dogecoin the pets.com from the cryptocurrency era? ” he asked.

Interest in crypto assets increased again after companies such as PayPal and Square started to activate transactions in Bitcoin on their systems. In addition, Wall Street companies such as Morgan Stanley are starting to provide access to tokens to some of the wealthiest clients.

Michael Novogratz, Chief Executive of Galaxy Digital Holdings, doesn’t believe it, because Dogecoin “doesn’t really have a purpose”.

“It’s reminiscent of GameStop,” he said in an interview with Bloomberg TV. “I would be very, very worried if one of my friends invested in Dogecoin at this price,” he added.

With little support for buying cryptocurrency, it leaves novice traders getting into the business vulnerable to big losses.

“The government has pumped so much monetary and fiscal stimulus into the economy right now, even worthless assets are being bidded,” said Michael O’Rourke, chief market strategist at JonesTrading.

Also Read: This is why Dogecoin jumped 400% in a week