Both Ethereum and Dogecoin have experienced wild bull runs in recent weeks. As they continue their upward trends we’re taking a look at the factors contributing to Ethereum and Dogecoin soaring past previous all time highs. While Ethereum currently holds the position of the second largest cryptocurrency in terms of market cap, Dogecoin has managed to climb its way up from the outskirts of the top 10 into the esteemed top 5 of the biggest cryptocurrencies. Let’s explore their rise and rise.
Ethereum’s Recent Climb
The blockchain development focused platform is in the process of moving over to parallel blockchain ETH 2.0, an upgrade that will move the network from a Proof of Work consensus to a Proof of Stake one. The community has rallied behind the network largely due to their consistent ability to meet deadlines, with the latest being the Berlin launch.
To put the recent rally in perspective, this time last year the cryptocurrency was trading at $100, while at the time of writing Ethereum is now trading at $3,295.42, up 10% in just 24 hours. This nearly 3,200% gain displays the incredible growth and versatility the platform is known for. In the first three months of the year, Ethereum doubled its market cap, creating a number of all time highs along the way.
Alongside the mass institutional investment that Bitcoin brought to the market, Ethereum experienced its own wave of institutional interest. Across several large financial derivatives exchanges, several market tools have been launched to support ETH being traded as a derivatives product. Since the beginning of the year, both the number of investment products as well as the size and activity of the ETH derivatives market have grown considerably.
The most recent surge in price is believed to have been largely contributed to by European Investment Bank’s (EIB) decision to issue a €100 million digital bond on the Ethereum blockchain “adding further utility to the network and value to the coin”.
After Ethereum broke $3,000 with ease, the cryptocurrency took further market dominance from Bitcoin. While usually holding 50% - 60% of the market share, Bitcoin is down to lows previously witnessed in August 2018, with market dominance at a low of 46%. Ethereum, while its market cap is roughly 40% of that of Bitcoin’s, is currently holding 17% of the entire cryptocurrency’s market share.
A technical analyst from Fairhead Strategies commented that “Ether has accelerated to new highs, reaching the targeted level of ~$3,000 from its April breakout far sooner than indicated. It is not wise to fight momentum, so we are reassuming a bullish near-term bias, somewhat reluctantly.” While no one knows what might happen to the second biggest crypto, there continues to be a bullish sentiment wavering through the Ethereum community.
Dogecoin Continues To Witness Wild Market Increases
Dogecoin has experienced an unlikely rally over the past few months, a rally largely instigated by Tesla CEO, Elon Musk. Based on a meme of a Shiba Inu dog, the cryptocurrency was created in 2013 and is yet to trade over $1. Last year, during the GameStop short squeeze led by the Reddit community, WallStreetBets, Dogecoin also received some attention from the group initiating a retail investor frenzy. This was following a trend on TikTok where users were (unsuccessfully) rallying to get the coin over $1.
The “joke” coin closed last year trading at $0.004 and has since increased to an all time high of $0.48, displaying increases of nearly 12,000% in just 4 months. Elon Musk is largely behind these bull runs, tweeting to his 52.6 million followers sweet sentiments about the cryptocurrency. What is most bizarre to the cryptocurrency industry is the fact that by design Dogecoin will never hold this value (10,000 DOGE are mined every minute with no cap on its supply), proving to be useless in the case of a store of value.
Unlike Bitcoin, Dogecoin has an infinite supply meaning that the cryptocurrency isn’t designed to offer a store of value. It is however used as a means for tipping on content based platforms like Reddit and Twitter. The self proclaimed “Dogefather”, Musk has been behind a number of tweets this year that have sent the price soaring. On 1 April, the Tesla CEO stated that SpaceX was going to “put a literal dogecoin on the literal moon” which sent the DOGE price up 28%, followed two weeks later by a meme depicting a “Doge barking at the moon”. The latter doubled the price from $0.12 to $0.29 in just 24 hours.
After hitting a peak of $0.42 the price corrected, only to be followed by another tweet from Musk, “The Dogefather. SNL May 8” referencing his appearance on Saturday Night Live. This launched another bull run sending the coin to its most recent all time high of $0.48. The cult following continues.
Enter The Bull Run With Oobit
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