Dogecoin, boosted by the likes of Elon Musk and Mark Cuban, rallied more than 110% Friday before dropping by 26% on Saturday, according to CoinMarketCap.com. It now has a market value of more than $36 billion and is still up 13,400% from a year ago, when it traded for $0.002 and was worth about $250 million.
Demand was so brisk for the token that investors trying to trade it on Robinhood crashed the site, the online exchange said in a blog post Friday. Some $68 billion worth of Dogecoin changed hands in the prior 24 hours as of 4:45 p.m. Friday in New York, the most since June, CoinMarketCap.com data showed.
Doge’s surge is part of a rise in altcoins, a term for all the digital tokens that have sprung up in imitation of Bitcoin. Like most of them, its use case is limited, making it a tool for speculators and raising concern that a bubble is inflating in a crypto world now worth more than $2.25 trillion.
“This reminds me of the dot com days. We knew something big was going on, a lot of investors were chasing it hard. That led to a bubble,” Scott Knapp, chief market strategist at CUNA Mutual Group, said. “For every Amazon.com there were 10 pets.com that went bankrupt. Is Dogecoin the pets.com of the cryptocurrency era?”
Interest in crypto is on the rise