Dogecoin has become really popular in the last month. The price of Dogecoin has risen dramatically in recent weeks, from $0.05 to an all-time high of $0.45. However, after the all-time high rally, Dogecoin fell to $0.16 and then jumped straight up to 0.44 dollars. People are trying to benefit from investing because the return on investment is too high.
But first, a word of caution: Dogecoin and other cryptocurrencies, as well as investments related to them, can cause you to lose all of your capital. Purchasing cryptocurrencies, like every other venture, is a high-risk endeavor with little promise of profit. You should ensure that you are aware of the uncertainties associated with investing in cryptocurrencies and that you can afford to lose whatever money you invest. Cryptocurrencies are very unpredictable, meaning the valuation of your savings will go up or down in a matter of seconds.
What is causing the Dogecoin price to rise?
Celebrities such as Elon Musk and Snoop Dog have backed Dogecoin, causing the price to rise. The recent spike in Dogecoin is due to the news that a well-known cryptocurrency site will now support Dogecoin. Customers of eToro, which has about 20 million users worldwide, will also be able to purchase and sell Dogecoin.
Since the crypto markets collapsed earlier this year, customers were shut out of their balances on the online cryptocurrency trading site. Due to technological problems, users were unable to sell their bitcoin and ethereum holdings.
Is Dogecoin on the verge of hitting $100?
Many people have begun to ask whether Dogecoin would ever exceed $100 in value due to the exponential increase in values. However, there are several factors to weigh when calculating the price of Doge. First, it’s an inflationary coin, which means it has an infinite supply and billions of coins are minted each year, because as demand rises, supply rises as well, bringing prices down in the long run.
Furthermore, unlike coins like Bitcoin and Ethereum, Dogecoin was not created with a specific intent in mind, because it’s just a joke currency, and investing all the money into a joke currency can be dangerous. There have been over 110 billion Doge minted to date, and if the price were $100, the demand for Doge would be worth about $18 trillion, more than the GPD of all the most developed nations. As a result, it’s very unlikely the Doge will ever hit $100.