A joke cryptocurrency’s market cap has doubled in under a week, surpassing the $2bn mark in the newest sign of the craziness of the world of cryptocurrency.
Dogecoin is based on a Shiba Inu dog internet meme which first emerged in 2013. Last week, it had already hit the headlines when it surpassed the $1bn mark.
Dogecoin’s value has increased by more than 6,000 percent in the previous year.
The rise and rise of bitcoin over the previous year has also spread to other cryptocurrencies – may it be a joke or not – with Ripple also beginning the year on a high as it overtook Ethereum as the world’s second-biggest cryptocurrency in terms of market cap.
JP Morgan noted that the share of bitcoin of the cryptocurrency market of around one-third is at a new low, while the total sum of the market is at a new high amounting to $770bn.
In a note on Monday morning, an analyst from the investment bank stated: “Other cryptocurrencies have likely benefited from the increased interest in bitcoin amid the listing of exchange traded futures, as well as the sharp rise in bitcoin average transaction costs from around $6 per transaction in early December to nearly $60 per transaction on Dec 22, before settling in a $25-$30 range in recent days.
“By contrast, average transaction fees in ethereum reached a high of $1.50 in early December and were around $1 on Jan 4, while average transaction fees in ripple measure a few cents according to bitinfocharts.com.”
Jackson Palmer, the creator of Dogecoin, has not yet cashed in like other early adopters. On Sunday, he informed the podcast Coloring Crypto that he did not invest until last year. He also said in a tweet that he has not owned “a substantial amount” of Dogecoin since 2015.
Based on estimated holdings, the still unknown creator of bitcoin was able to become a billionaire on paper on the back of the boom.
Commenting on the rise of Dogecoin, he said that it was a barometer for “crypto-mania and speculation” and that the present market is a bubble.
“I have a lot of faith in the Dogecoin Core development team to keep the software stable and secure, but I think it says a lot about the state of the cryptocurrency space in general that a currency with a dog on it which hasn’t released a software update in over two year has a $1bn plus market cap,” said Palmer.
He stated that cryptocurrencies are more like stocks instead of currency, a trend that is possible to continue.
Palmer said: “I think 2018 will be a year that cryptocurrency in its current form at least is finally written off as a currency, or a means of exchange. I think It’s going to be cemented as akin to stocks, or digital stocks in technology.
According to coinmarketcap.com, Dogecoin is currently among the 30 most valuable cyptocurrencies in the world.
Meanwhile, the price of bitcoin dropped below $15,000 and Ripple lost gains to $2.46, down from last week’s all-time high amounting to $3.84.