What started as a joke is becoming a reference in the cryptocurrency market . This Tuesday Dogecoin has shot up to its all-time high by achieving a capitalization of more than 63.3 billion dollars (52.7 billion euros), which places it among the five strongest cryptocurrencies and makes it exceed the value of giants from other sectors such as Vodafone, Twitter, Ford or ING, which ranges between 38,000 and 42,000 million.
How can a virtual currency with no physical value outperform traditional companies with decades of experience? Dogecoin was born in 2013, created by engineers Billy Markus and Jackson Palmer, who wanted to create a payment system without bank fees and be a “funny alternative” to Bitcoin , the main cryptocurrency .
That is why they put the face of the Shiba Inu dog as an image , popularized as a meme on social networks. Dogecoin has become a speculation mechanism without a project behind it that, even so, triples the value of companies like Repsol, which has a capitalization of 16,000 million euros.
The historic momentum of Dogecoin in recent months has materialized after the support of billionaires such as Elon Musk , investor, tycoon and founder of Tesla – self-proclaimed in networks as ‘Dogfather’ or godfather of Dogecoin -, or Mark Cuban , one of the greatest fortunes of the world.
Thus, in the last seven days its value has grown more than 78%, soaring this Tuesday with its inclusion in the asset investment platform eToro .
Now, a Dogecoin is worth $ 0.48, a very low price that allows entry into the speculative game of small investors and opens the possibility of large profits. This is the case of Aleix, who decided to put 250 euros in Dogecoin when its value was 0.07 euros. With the increase on Tuesday, his initial investment has become 1,450 euros.
During this period, he was buying and selling small amounts depending on the fluctuation of the price of the currency. “I have always invested in the stock market and it has been good for me. I did not dare to jump into cryptocurrencies but seeing that Dogecoin was being talked about as garbage but that it was going up I decided to try it,” he explains. “I am aware that it is a pyramid scam but I wanted to play, it does not come from those 250 euros.”
That speculative fever attracts retail investors to the world of cryptocurrencies, but like Musk or Cuban, part of those interested in that increase in value are the fortunes and large funds that those currencies own. So far this year the value of Dogecoin has catapulted more than 18,000%. Musk’s appearance on Saturday Night Live may serve to bring up cryptocurrency live and further skyrocket its value.
This digital token became popular in January, when investors gathered in the Reddit WallStreetBets forum coordinated to ‘tolerate’ the financial market and acquire shares of falling companies to revalue them and cause losses to large funds. So the value of Dogecoin went from $ 0.007 to $ 0.04.
Its rise also parallels the growing appeal of cryptocurrencies. The IPO of Coinbase, the largest cryptocurrency trading platform in the United States, also helped to skyrocket Dogecoin.