Having its springs from parody Internet meme altcoin, Doge makes a headline by suddenly emerging into market and joining cryptowagoon. According to CoinMarketCap there are 38 cryptoassets worth more than $1B now, and Dogecoin is the 35th.
Dogecoin was created in far 2013 and its price hasn’t exhibited any significant gyrations until now. At the time of writing, the price of nearly forgotten asset hits the mark of $0.01 with increase in more than 400 percent over the past month.
This meteoric growth gives rise to new wave of interest and pushes Dogecoin’s market capitalization above $1 billion, according to the data from CoinMarketCap. Meanwhile, the total value of cryptocurrency estimates $779B with Bitcoin dominance over 35% of the market.
The developers of market new-comer were surprised to meet Dogecoin’s expanding trading volume since cryptocurrency hasn’t undergone any updates for about 2 years. However, Dogecoin’s team stays optimistic observing their creation in positive momentum regardless to allegations of insecurity and volatility amidst digital community space.
Dave Chapman, managing director at Hong Kong-based commodities and digital assets trading house Octagon Strategy, explains such a surge in Dogecoin price to CNBC referring to cheap altcoins boom. According to him, today market value of flagmen as Bitcoin and Ethereum reaches new highs and is considered very expensive for most new entrants who are eager to contribute to crypto rush.
“Despite being able to purchase a fraction of each, there is a real psychological barrier around owning something in its entirety,” he said. He also stated that a buyer in his psychology would rather prefer to own whole amount of single cheap asset than fraction of expensive one even at the same price.
The trend for parabolic growth of altcoins, despite lack of advances in software tools or new cases, according to Dogecoin critics, only fuels speculations and artificially inflates its prices. Thus, skyrocketed altcoin’s market cap not always indicates success and investors have to step cautiously.
Detailed trend can be obviously tracked on the example of early-unknown TRON (TRX) and Stellar Lumens (XLM). From the very start of 2018, the altcoins price swelled by record highs and the popularity raised with every day. But unlike Dogecoin whose developers devote to the project only spare time, TRX and XLM teams encourage investors to sink their money into altcoins by providing updates and expanding the horizon of blockchain ecosystem.
As long as the market is flooded with enthusiasts who don’t want to miss the opportunity to get their piece of crypto pie, altcoins as Dogecoin, TRON and Lumens are likely to remain relevant and demanded.
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