Dogecoin, Elon Musk and Saturday Night Live — here’s why memecoins continue to rise
Doge’s list of celebrity backers has continued to increase since the start of the year.
- Mr Doge — aka Elon Musk — is all set to host Saturday Night Live this weekend.
- Over the course of the last 12 months, DOGE’s value has surged by more than 12,000%.
- Since early 2020, Musk has repeatedly showcased his support for Dogecoin, even referring to it as the “people’s cryptocurrency”.
Memes have become a major part of the global Internet landscape in recent years, thanks in large part to their ability to relaY cultural and social information in a way that’s not only humorous, but easily digested by the masses.
In this regard, Dogecoin — a “parody cryptocurrency” founded in 2013, primarily as a means of poking fun at all of coins vying to challenge bitcoin’s dominance — has become an interesting topic, especially since its value has been surging quite rapidly in recent weeks.
As a result, a number of investors are now beginning to view the currency as a legitimate financial instrument that can be used as a potential store of value. The value of DOGE has surged since the beginning of April, with the top 10 altcoin scaling up to an all-time high of $0.42 on April 20th.
Mr. Musk has a lot to do with Doge’s ongoing ascent
The crypto market has been on a tear over the last many months, with the total capitalization of this space sitting at over $2.3 trillion at the time of publishing. This is in large part due to the increased amount of institutional money that seems to have made its way into this fast evolving space.
For example, earlier this year, Tesla CEO Elon Musk announced that his company would be adding bitcoin worth $1.5 billion onto its balance sheets. Similar trends were witnessed across the board with a number of traditional players — including MicroStrategy and Square — also investing significant sums of money in crypto.
While a Bitcoin investment on paper seems logical for big companies — especially when considering the fact that the flagship crypto can serve as a digital substitute for gold as well as a hedge against inflation — what’s been interesting to note is that Musk has repeatedly showcased his support for Dogecoin for many months now.
A host of other celebrities such as rapper Snoop Dogg and Kiss bassist Gene Simmons have also hailed the currency as a legitimate investment avenue. As a result, DOGE’s status seems to have transformed from being an Internet joke to one of the most popular cryptocurrencies in the world.
Is Dogecoin’s rise sustainable?
Though Dogecoin’s rise has been an amazing feel good story for many crypto enthusiasts across the globe, it’s worth delving into the question of whether DOGE’s ongoing meteoric rise is sustainable in the mid- to long-term.
With a rapidly growing amount of new DOGE tokens being minted every day, the currency’s future price action will continue to become increasingly unsustainable as we head into the future.
Doge mania to continue as Musk set to host SNL?
Elon Musk has time and again referred to Dogecoin as being his ‘fav’ cryptocurrency as well as “the people’s crypto.” Continuing in this tradition, the billionaire recently tweeted out the following message: “The Dogefather SNL May 8” — referencing his planned appearance on Saturday Night Live as well as his undying love for Dogecoin.
Similarly, NBA franchise owner Mark Cuban has been talking about DOGE recently, claiming his team is on track to complete 6,000 Dogecoin transactions by the end of this month, adding:
“DOGE is the one coin that people actually use for transactions. People spend their Doge and that means more businesses will start taking it.”
Even Vlad Tenev, co-CEO of trading app Robinhood, announced that he and his team are looking to introduce a feature whereby users will be able to facilitate DOGE deposits and withdrawals along with a host of other crypto tokens. “We’re working on deposits and withdrawals! Not just for DOGE, but for all coins on Robinhood Crypto.” he added.
Disclosure: The author owns a range of cryptocurrencies at the time of writing