Animal spirits are alive and well in the cryptocurrency world, with the frenzy sending Dogecoin increasing by 50% again and crushing Robinhood’s trading app.
Other so-called Altcoins have also taken off, with Dash peaking up to 14% and Ethereum Classic over 30%. In the world of DeFi, tokens such as Force DAO and Tierion jumped more than 1,000% on Tuesday, according to data from CoinMarketCap.com. Meanwhile, Robinhood said it has addressed previous crypto trading issues on its platform.
“You’ve got money looking for a home and it’s one of those areas of the market where there’s speculation, there’s significant appreciation in a short period of time,” Chad Oviatt, Director investment management at Huntington Private Bank. “You get that excitement over there.”
The rallies defied easy explanation and continued a trend that saw the value of all digital tokens exceed $ 2.25 trillion (around Rs. 1,66,21,990 crore). Doge, created as a joke in 2013, has been used in marketing gimmicks, the latest by the Oakland A baseball team, which offered two seats to games this week for 100 Dogecoin. The Gemini crypto exchange backed by Tyler and Cameron Winklevoss has said it now supports Doge and will soon allow trading.
Dogecoin’s searing advance of around 0.002 cents a year ago – when it was worth around $ 300 million (roughly Rs 2,220 crore) – has caught the interest of many Wall Street residents. It even caught the attention of the Federal Reserve – the chairman of the central bank replied last week that “some of the asset prices are high” when asked if things like the supercharged rallies of GameStop and Dogecoin created threats to financial stability.
A sign of the growing popularity of Dogecoin, the Robinhood app is among the top 10 downloads on the Apple App Store. Meanwhile, Coinbase Global, America’s largest crypto exchange, does not offer Doge trading – saw its shares drop more than 6% on Tuesday. The stock is on track for the lowest close since it debuted on the market last month.
“It’s pretty amazing that something that started out as a joke has grown so popular,” said Matt Maley, chief market strategist for Miller Tabak +.
Although interest in digital assets has picked up in recent months, as more traditional businesses that have long hesitated in the crypto space warm to cryptocurrencies, it is the alternative coins that have. attracted the most attention in recent days. Bitcoin has taken over after record-breaking Ether and Doge rallies, wrote Edward Moya, senior market analyst at Oanda.
“The Dogecoin bubble should have burst now, but institutional interest is trying to take advantage of this momentum and it could support another higher surge,” he said in a note. “Dogecoin is booming because many cryptocurrency traders don’t want to miss the buzz that comes from Elon Musk’s hosting of Saturday Night Live.”
Elsewhere, a new ether ETF traded in Canada, the CI Galaxy Ethereum ETF (ETHX), broke its record volume on Tuesday, with more than $ 22 million in shares (around 160 crore rupees) changing hands at 12:30 p.m. in New York. This fund has attracted around $ 162 million (roughly Rs 1,200 crore) since its inception in March.
Bitcoin fell 5.7% to $ 53,560 (around 39.5 lakhs), the third consecutive decline.
Meanwhile, many – including famous crypto investor Mike Novogratz – have warned the rallies could be unsustainable. Novogratz, CEO of Galaxy Digital Holdings, said recently that he would be “very, very worried” to be a friend of his to invest in Doge.
“It looks like investors are moving from one hot spot to another, like a game of pinball,” said Mike Bailey, director of research at FBB Capital Partners. “I have a feeling this speculative wave will suffer the same fate as GME and Robinhood’s other flash-in-the-pan stocks. Cryptocurrencies may have become a new asset class, like precious metals, but such surges seem unsustainable. “
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