The stock market saw a record breaking spike this April as a meme currency dramatically went up in price out of nowhere.
Dogecoin, originally created as a funny meme, is a type of cryptocurrency with no official owner. A crypto is a sort of online token, usually created by companies, that can be used to buy goods and services in exchange for money. Shares of the coin can be purchased through the stock market and can increase or decrease in value based on how many people invest in it. So basically, if you wanted to buy something, you could first put the cost of it into a crypto share that has the ability to grow, leaving you with money to buy the item and more. The face of the coin is a Shiba Inu, a Japanese dog breed.
The reason for the sudden spike is not entirely certain, but some reports have theorized a couple different ways the coin got a sudden fame. In a recent CNBC article, author Ryan Brown credited the currencies success to business magnate and CEO of SpaceX and Tesla, Elon Musk, stating, “He has made several tweets about Dogecoin, which in turn has helped push up its price.” Additionally, Journalist Sneha Kulkarni writes, The key explanation for the price increase is said to be the rising value of other crypto types such as Bitcoin.”
The currency has gone up in value from $1 billion to $48 billion since the beginning of 2021. In just one month, the company’s shares have gone up from five cents each to an astounding 43 cents each. Musk, now hooked to the coin, is set on a goal to get it to over one dollar per share by the end of the year.
In a recent interview with GM freshmen and Dogecoin investor Braeden Means, he shared that he was not surprised by the spike because he “saw major potential in the coin and invested early.” Braeden also shared that the crypto will see more investors as people begin to learn more and more about it. He believes that “as time goes on and more people invest, the coin has an opportunity to get to much more than a dollar per share.”
With a growing interest among U.S. citizens, Dogecoin reaching $1 by 2022 does not seem impossible. Right now, the currency has about a 16% chance, but if the coin continues to strive and gain celebrity support, the goal is very reachable. Dogecoin is currently the 4th biggest cryptocurrency available in the U.S. Who would’ve thought what started out as a joke could turn into a billion dollar business.