Dogecoin Soars 40% to all-time High

On Wednesday Dogecoin, the cryptocurrency-based off a viral dog meme from nearly a decade ago soared to an all-time high, extending its 2021 rally to become the fourth-biggest digital coin. Dogecoin, launched as a satirical critique of 2013’s cryptocurrency frenzy, and according to CoinMarketCap has climbed 41% in the last 24 hours to a record $0.68. Dogecoins are now cumulatively worth $88 billion, compared to bitcoin’s $1 trillion and ethereum’s $391 billion.

This year alone it has soared over 14,000%, from $0.00468 on Dec. 31, taking it past more widely used cryptocurrencies such as the Tether stablecoin and XRP to become the fourth-largest by market capitalisation. Dogecoin – whose logo features a Shiba Inu dog at the centre of the meme – remains little used in commerce or payments. Like other digital coins, it is highly volatile and its price is heavily influenced by social media users.

On Tuesday, the New York crypto exchange Gemini said it would start letting users trade and custody the token. Some cryptocurrency market players said its volatility was its main draw, with a mixture of retail investors and market makers fueling its trading volumes.

Joseph Edwards, head of research at crypto brokerage Enigma Securities said: “The ugly truth is that a lot of crypto valuations are divorced from reality anyway. Right now, (Dogecoin) is being seen as it’s always been seen – an asset with surprising staying power that provides opportunities to take advantage of volatility every year or so.”

Novogratz spoke after the price of dogecoin surged again early Wednesday. The cryptocurrency — initially started as a joke in 2013 — was now approaching 70 cents per token, putting its year-to-date gains at nearly 14,000% and its market value at around $87 billion.

“When you think about the whole spirit of what this crypto revolution is, there’s something pure in what dogecoin has done,” Novogratz, Founder and CEO of Galaxy Digital, said on “Squawk Box.” “It’s a little bit of a middle finger to the system. People are unhappy with the current financial system. They just are.”

Novogratz repeated his concern about the sustainability of dogecoin’s rise, believing it lacks the same sophistication as bitcoin, which is the world’s largest cryptocurrency by market value. But the billionaire investor also said of dogecoin, “It would be very dangerous to be short, I’ll tell you that much.”

“I’m not participating on the long side,” he added. “I think it’s dangerous because once that enthusiasm dies, if it dies, you could have a long way down. But I don’t want to discredit. It’s shocking that it happened.”