KEY POINTS

  • The subreddit r/SatoshiStreetBets continues to recommend Dogecoin
  • Elon Musk on Clubhouse called Dogecoin’s rise the most entertaining outcome of the GameStop saga
  • Dogecoin has an infinite supply

After dropping during the weekend, joke cryptocurrency Dogecoin appears to be sustaining momentum after traders from a Reddit group slowly push the price up.

Redditors on the subreddit SatoshiStreetBets, the cryptocurrency version of r/WallStreetBets, are pushing for the entire community to buy and hold Dogecoin amid a weekend plunge. “To those who say the hype is over, we just saw proof over the past 3-4 nights of our collective efforts being effective. The moment we lose each other is the moment we fail,” said one Redditor, Bloomberg reported.

Seemingly out of nowhere, Dogecoin went up from $0.007 on Jan. 28 to as high as $.0.087 the next day. The pump was largely classified as an after-effect of the GameStop saga. Retail traders initiated a short squeeze and kept on buying $GME, causing its price to go up and causing short traders, the majority of which are hedge fund managers, to capitulate. At some point, however, there were reports that the trading apps were being coerced by its investors to block its users, primarily retail traders, from buying the stocks. Some of these traders might have turned their attention to cryptocurrencies, and Dogecoin was a target because of its low price of not even a penny. Dogecoin also received boosting from Elon Musk who tweeted about the joke cryptocurrency amid the frenzy.

However, just like what happened to these so-called “meme” stocks, some exchanges and trading apps, including Robinhood, have disabled crypto deposits. Additionally, traders may have also found out that Dogecoin’s supply is infinite, thereby questioning its long-term value. If Dogecoin went up to $1, its market capitalization would become higher than Ethereum, the second-largest today.

Still, despite this weekend plunge, Dogecoin’s price increased by around 85 percent Sunday from $0.02 to as high as $0.049 before closing the day at $0.046, a respectable 37 percent increase. Dogecoin is currently trading at $0.038. The cryptocurrency, along with XRP, is still r/SatoshiStreetBet’s picks. This time, they might have received another assist from Elon Musk, who went live on Clubhouse today and mentioned that the GameStop saga’s most entertaining outcome would be Doge becoming the currency of the future.

Japanese Shiba Inu dog Japanese Shiba Inu dog, the official mascot of the internet meme-centric cryptocurrency Dogecoin. Photo: Matt Cardy/Getty