Dogecoin could see its price rise further, according to Bloomberg Intelligence analyst Mike McGlone, after the eight-year-old joke cryptocurrency surged more than 60-fold this year to a market value of more than $40 billion.
“Gaining somewhat of a global cult following, we see little to stop DOGE from continuing to appreciate, at least in the near-term,” McGlone, a commodity strategist known for his prescient bitcoin price predictions last year, wrote Tuesday in a report. “Dogecoin may be casino-like fun.”
Such bullish comments came as dogecoin (DOGE) showed little inclination to leap on Tuesday, despite the hopes or intentions of some adherents to push the token’s price to a meme-y 69 cents on 4/20 (April 20). Social-media posters even informally dubbed it “dogeday.”
As of press time, the token, symbolized by the Shiba inu dog breed, was down 13% over the prior 24 hours, to a price of 34 cents.
“Many retail crypto traders were hoping for today to be a successful ‘Dogeday’ by sending dogecoin to the moon,” Edward Moya, senior market analyst for the brokerage Oanda, wrote Tuesday. “Some were eyeing the $0.50 level as an area to take some profit, with others having outlandish hopes of a skyrocketing move to the $1 mark. The current retail fervor probably won’t completely give up on dogecoin, but a sell-the-event reaction could be in the cards.”
One question is whether the recently bullish price action in dogecoin might draw fresh capital and labor to the project, similar to the way last year’s pump in GameStop shares led to a $1 billion capital raise, a search for new management and potentially a transition to an e-commerce strategy. At one point, dogecoin had a market value bigger than the centuries-old U.K. bank Barclays.
Blockchain data show that activity is increasing on the network: Active Dogecoin addresses have climbed to record, and transactions are at a seven-year high, according to the analytics firm Coin Metrics. CoinDesk reported earlier this year that project development on the blockchain has picked up, with top contributions from Bitcoin Core developers, based on activity on the open-source software site GitHub.
Within broader digital-asset markets, the DOGE frenzy appears to have spread to decentralized finance (DeFi), where several imitator tokens have chalked up staggering single-day gains.
The first is SHIB (get it? Shiba inu?), a decentralized experimental token nicknamed the “dogecoin killer,” trading on the decentralized exchange Uniswap. The token, launched under the Ethereum blockchain’s ERC-20 standard, has rallied over 5,000% in the past four weeks and rose 95% on Monday alongside DOGE’s rally to record highs near 43 cents. The coin has registered a trading volume of over $200 million in the past 24 hours, Uniswap data shows.
Another coin, weed doge (WOGE), launched this week, allegedly in a bid to donate funds to people with unjust marijuana incarcerations. WOGE rallied 1058% from to $0.0950 on Monday though was last seen trading near $0.0170 on Uniswap.
“Since DOGE has been taking care of us and providing us with godly profits this bull run, we also wanted to create a meaningful coin that gives back to the people in a handful of ways,” says a post on CryptoMoonShots Reddit page.
Most of this ridiculousness is seen as evidence of froth in cryptocurrency markets, at a time when bitcoin prices have doubled this year – ostensibly as a hedge against inflation, in the wake of trillions of dollars of money printing by the Federal Reserve and other central banks.
Bloomberg’s McGlone noted that dogecoin had demonstrated “divergent strength” as bitcoin prices retreated in recent days. The report was published prior to Tuesday’s losses.
But sometimes, apparently, the DOGE doesn’t come when called.