+ 2.69
+ 1.88%

What Does Dogecoin Rally Mean For The Overall Cryptocurrency Market?

April 16, 2021 2:14 am
Share to Linkedin Share to Twitter Share to Facebook Share to Print License More
What Does Dogecoin Rally Mean For The Overall Cryptocurrency Market?

Dogecoin (DOGE) has rallied 353.77% over a seven-day trailing period, touching an all-time high of $0.29 on Thursday night, and the spike could bode well for the overall cryptocurrency market.

Is Doge A Bad Boi? Some on social media have long expressed concerns about DOGE’s upward movement, citing the harm a joke asset garnering mainstream attention could cause to the cryptocurrency community at large.

Citing Doge's inflationary supply compared to Bitcoin's (BTC) limited supply, a  post on r/Cryptocurrency claimed "Dogecoin is NOT a smart longterm investment."

“Think about that. Each minute, 10,000 DOGE have to be bought just to keep it at the same price,” u/EthereumDream said.

Another poster noted that just a single address owns 28% of all Dogecoins in existence and “that alone should worry anybody.”

DOGE traded 80.03% higher over 24 hours at $0.23 at press time. BTC traded 1.86% lower at $62,027.70.

In the past Reddit users have expressed worry about Musk’s frequent tweets on DOGE and expressed the fear that this may lead to serious damage.

Doge Good For Altcoins: According to some, the money that is flowing into Dogecoin can prove a boon for the entire cryptocurrency market.

Popular trader and strategist Kaleo thinks the current DOGE pump could lead to an eventual flow into other so-called altcoins.  

In the past, Kaleo has noted Doge’s movement independent of a boost from Tesla Inc (NASDAQ:TSLA) CEO Elon Musk.

The Alt-Season Is Here: Even as BTC hit all-time highs this week, it has slipped in terms of market dominance. At press time BTC market dominance stood at 52.3%. 

The runners up in terms of market dominance was Ethereum (ETH) at 12.77%. DOGE has a market dominance of 1.35%. ETH traded 0.83% lower at $2,449.50.

An analyst pointed out that the loss of BTC dominance is an indicator that the “altcoin season” is here. Michaël van de Poppe predicts a “very bullish” summer for altcoins.

Read Next: Why Is Maker Cryptocurrency Skyrocketing?

For the latest in financial news, exclusive stories, memes follow Benzinga on Twitter, Facebook & Instagram. For the best interviews, stock market talk & videos, subscribe to our YouTube channel.


Cryptocurrency Markets

Related Articles

EXCLUSIVE: Building On Top Of Bitcoin May Not Be As Popular As Ethereum, Other Blockchains, But We're 'Close To Seeing Some Runaway Success,' Says Stacks

Stacks (STX) aims to bring smart contracts and decentralized applications, or DApps, to Bitcoin (CRYPTO: BTC). An attractive facet for some is the ability to earn BTC earning through a mechanism the project calls “Stacking.”  Mitche read more

Dogecoin Co-Creator Warns Taking Out Loans To Buy Volatile Speculative Assets Is 'Absolutely Bonkers'

Dogecoin (CRYPTO: DOGE) co-creator Billy Markus has warned that taking out loans to buy volatile speculative assets such as cryptocurrencies and so-called stonks is “absolutely bonkers.” read more

Elon Musk Counters Kraken CEO On Bitcoin Being 'Greener' Than Critics Say

What Happened: Jesse Powell, CEO of crypto exchange Kraken, thinks Elon Musk has more to learn on the topic of Bitcoin mining. read more

Will Tesla Resume Bitcoin Transactions Now That Miners Clean Energy Usage Exceeds 50% In China?

What Happened: Over the weekend, crypto markets rallied after Elon Musk tweeted that Tesla Inc (NASDAQ: TSLA) would resum read more