With 118% increase in one month, the dogecoin cryptocurrency explodes the counters

The dog-headed cryptocurrency displays a capitalization above $30 billion. It achieves the best performance of the 10 main cryptos.

118% gains over one month, 40% in one week… Dogecoin, the dog’s head cryptocurrency, achieves by far the best performance of the 10 main cryptocurrencies on the market. For comparison over the same period, bitcoin “only” gained 18% over one month while ether posted gains of 7%.

This Friday, March 28, dogecoin even reached its highest level since December 2021, trading above 22 cents on the dollar. How to explain such a flight? On the one hand, dogecoin has benefited from the surge in bitcoin since the start of the year, driven by the arrival of new financial products, bitcoin spot ETFs. This week, the queen of cryptos exceeded $71,000 amid euphoria.

Furthermore, dogecoin “tends to react to developments related to payments at any company owned by Elon Musk, such as X or Tesla and several social media posts from members of the Dogecoin community have speculated on the use of the token on CoinDesk.

Speculations

In mid-January, speculation began around the token, particularly after the launch of the X account (ex-twitter) of X-Payments, the account for the social network’s online payment solution. If this has never been confirmed by Elon Musk, dogecoin could well be one of the means of payment on the platform. Two years ago, Elon Musk declared dogecoin to be the “people’s cryptocurrency” and today allows the purchase of Tesla with dogecoin.

Launched in 2013 as a joke to compete with bitcoin, dogecoin is now in 7th place among the most capitalized cryptocurrencies on the market, with $30 billion in capitalization. “Trading volume for dogecoin climbed to $7 billion in the last 24 hours compared to an average of $3 billion earlier in the week,” points out CoinDesk.

If dogecoin makes a spectacular rise, the fall can be just as brutal. Investors are therefore encouraged to remain cautious if they want to invest in this same area. The cryptocurrency remains to this day 70% lower than its all-time high reached on May 8, 2022 at…73 cents.