Why is Dogecoin going up? Dogecoin reaches close to peak price again on May 3 and May 4

Over the past month, Dogecoin has been trending a lot. The Dogecoin price has skyrocketed from $0.05 to an all-time high of $0.45, a couple of weeks back. However, more recently, Dogecoin dropped back to $0.16 after the all-time high rally, and then again shot back up to $0.44 dollars. With such an explosive return on investment, people are looking to make profits through investing. In this article, we'll take a look into why the Dogecoin price jumped up. 

Why is Dogecoin Going Up?

Dogecoin is a cryptocurrency that was originally formed in 2013. Doge was built to be a friendly introduction to the concept of cryptocurrency for the general public/layman and had a 'fun and friendly' brand image behind it. The face of DOGE was the dog Shiba Inu, who became popular as the DOGE meme. It literally became a 'meme cryptocurrency'. Nobody in the early years believed DOGE would become as valuable as it is today.

However, Dogecoin has grown in popularity because of the community surrounding it. Dogecoin has an almost cult-like status in the crypto world. Popular celebrities like Elon Musk also supported and joked around about Dogecoin. More than anything, DOGE helped to spread awareness about the value and importance of blockchain technology and cryptocurrency among millions of people worldwide. Today, Dogecoin has become one of the most popular cryptocurrencies.

Over the past couple of days on May 3 and May 4, the price of Doge has gone up from $0.37 to $0.44 dollars, which is an 18 per cent increase in the price in just 2 days. The main reason behind this is the fact that Elon Musk is going to be hosting SNL soon, and he has mentioned in one of the Tweets that he might bring up Dogecoin on the show. People are buying up Dogecoin in anticipation of the May 8 SNL show with Elon Musk, hoping he'll talk about Doge and pump up the price.

Can Dogecoin Reach $100? 

With such a rapid rise in prices, many people have started to wonder if Dogecoin will ever reach $100 dollars in value. However, there are a ton of this to consider when thinking about the price of Doge. First, it's an inflationary coin, meaning it has an endless supply and billions of coins are minted each year, so as the demand increases the supply also increases, which will bring down the prices in long term.

Moreover, Dogecoin wasn't made with a purpose unlike coins like Bitcoin and Ethereum, so it's just a joke currency and putting all your money into a currency made as a joke can be risky. There are more than 110 billion Doge minted to date and if the price $100 dollars, that would make the market of Doge at around $18 trillion, which is more than the GPD of even the most developed countries. So, highly unlikely Doge will ever reach $100. You can read more in-depth about the topic here. Stay tuned for more updates on Doge and cryptocurrencies. 

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