Dogecoin is trading at $0.60, which is a slight drop from the all-time high recorded on May 5 of $0.69.
The recent price surge for Dogecoin has produced a 12,000% return in the coin’s value since the beginning of the year. Recent analysis shows that an investment of $1,000 made at the beginning of the year would have increased to $121,000.
This is an even more remarkable growth than the stellar returns delivered by Bitcoin and Ethereum. The two crypto assets have increased by around 95% and 369%, respectively, since the beginning of the year.
Elon Musk’s Role in Dogecoin value
The latest DOGE rally can be attributed to the boost it was given by Tesla’s CEO Elon Musk, who tweeted about a Dogecoin skit being aired on US TV show Saturday Night Live, which has fired up further buying interest.
Elon Musk calls himself the ‘Dogefather’ of the coin, which was originally developed as a joke. Musk has played a significant role in promoting DOGE. The CEO often posts tweets about the coin to the 52 million followers of his Twitter account. At one point, Elon Musk stated that he would pay investors to sell all their Dogecoin holdings to reduce the coin’s concentration.
More in the tank for Dogecoin?
Dogecoin’s bullish rally may not go on for much longer. Experts have warned investors against purchasing more Dogecoin as a way of making quick returns because of the volatility of the crypto market. The value of DOGE may fall hard soon, which could lead to massive losses for investors who have bought near what could be the top.
However, buying may continue in the run-up to the SNL show and DOGE has been written off many times before but keeps on rising.
When Dogecoin was first created, it would not be a store of value or a payment method. The chief operating officer of the BRD crypto wallet, Adam Zadikoff, noted that an investor can make good returns if they time their investment at the right time. But, this strategy can cause massive losses because timing the market is hard enough in traditional markets and arguably near impossible in the crypto.
Amidst all this speculation, Dogecoin is beginning to attract more investors, some of whom are unexpected. US rapper Meek Mill is the most recent public figure to jump on board the Dogecoin rally, after purchasing $50,000 worth of Dogecoin. If this adoption continues, Dogecoin could continue its bullish trend until the end of the year and even push past the $1 value.