Dogecoin continued to buck the broader market trend on Monday, rising as much as 35% to an all-time high above $0.41 before paring its gains, as bitcoin and other cryptocurrencies stabilized after sharp falls at the weekend.
The meme cryptocurrency, which was created as a joke in 2013, was up 22% over the 24 hours to 10.05 a.m. ET to stand at $0.37617, having earlier hit a record high of $0.41878, according to CoinGecko.
Dogecoin’s rally contrasted with sharp falls for many other cryptocurrencies over the weekend, as excitement waned in the wake of the $100 billion direct listing of crypto exchange Coinbase. Doge slipped slightly over the weekend after nearing $0.40 on Friday, but rallied again on Monday.
Bitcoin stabilized on Monday morning to trade at around $56,200, well off recent highs of close to $65,000. Ether, the cryptocurrency on the Ethereum network, stood at around $2,180, below recent highs of more than $2,500.
Dogecoin has been the stand-out star of the cryptocurrency world over the last week, with a rise of more than 400% according to CoinGecko.
The massive rally is tied up with celebrity endorsements and meme culture, said Adam Levine, head of podcasts at Coindesk.
“There seems to be a consensus unofficially among the Elon Musks, Slim Jims, Mark Cubans and a big part of meme culture that Doge is the joke currency to beat,” he said.
“It gets tons of media attention because of it, in a self-reinforcing cycle.”
Michael Kamerman, CEO of trading platform Skilling, said the asset has little intrinsic value but was being boosted by investors’ fear of missing out, or FOMO.
He added: “The main driver behind Dogecoin’s popularity is its online communities, coupled with support from high-profile business magnates like Elon Musk.”
Dogecoin is a cryptocurrency – a decentralized digital asset based upon blockchain technology – started in 2013 by software engineers as a joke. It takes its name from the Shiba Inu dog meme.
Yet many analysts are warning buyers could get stung if they pile into Dogecoin at elevated prices.
Freetrade analyst David Kimberly said: “People are buying the cryptocurrency, not because they think it has any meaningful value, but because they hope others will pile in, push the price up and then they can sell off and make a quick buck.
“But when everyone is doing this, the bubble eventually has to burst and you’re going to be left short-changed if you don’t get out in time. And it’s almost impossible to say when that’s going to happen.”