It is looking like the Reddit conversation is moving into cryptocurrencies, sending Dogecoin (CCC:DOGE) soaring with a 296% increase in the last 24 hours, as of 7 a.m. Eastern. What other cryptocurrency news do you need to know?
Seemingly fueled in part by mentions in Reddit trading groups like r/WallStreetBets and r/SatoshiStreetBets, the price of DOGE rose to a record 7.8 cents on Thursday. It fell back to 4.35 cents this morning before gaining to 5.61 cents.
Cryptocurrencies also got a jolt from Tesla (NASDAQ:TSLA) founder Elon Musk who changed his Twitter bio to mention Bitcoin (CCC:BTC). A downward trend pushed Bitcoin’s value below $30,000 yesterday — compared to more than $40,000 earlier this month — before a rally this morning. “Elon’s tweet overrides all other bearish signals,” Ki-Young Ju, CEO of blockchain analytics firm CryptoQuant tweeted.
Musk’s history with Dogecoin goes back to his 2019 comment that it was his “fav” cryptocurrency, when many saw DOGE as a “joke.” Dogecoin is often the subject of memes and cryptocurrency enthusiasts. It was first mined in 2013 to broaden the reach of Bitcoin and make the crypto world a bit more fun with its Shiba Inu “Doge” meme.
Forbes reported that Dogecoin is now the 17th-biggest cryptocurrency by value, according to CoinMarketCap. Crypto and blockchain contributor Billy Bambrough noted that DOGE has “gone through meme-based bubbles before, climbing last year after a viral TikTok video about the cryptocurrency racked up 1 million views — and helped by Barstool Sports’ David Portnoy.”
Cryptocurrency News: Reddit-Ethereum Tie-Up Is No Joke
Meanwhile, Reddit is getting serious about wanting to be a player in the Ethereum (CCC:ETH) ecosystems. As CoinDesk reported earlier this week, the social platform will expand its work with the Ethereum Foundation to provide scaling tools.
The collaboration aims to enable Redditors to reward each other points for writing “quality posts,” with these points redeemable for badges or other custom features.
Do Your DOGE Due Diligence
Before the Reddit rally started, investors were flooding into Bitcoin and its cryptocurrency peers. We saw Bitcoin double in a few weeks, ultimately hitting a new high above $40,000. Along the way, it took other cryptos like Stellar (CCC:XLM) and XRP (CCC:XRP) higher. And with the leading digital currency pulling back, we wrote recently that many are betting on bigger gains in the altcoin space. As of early January, DOGE looked to be one of the largest altcoin winners.
However, with the influence and enthusiasm of Reddit, anything seems possible. Just remember how much risk and volatility is involved, and continue to do your own research.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.
