As the much hyped $44-billion worth Twitter deal came to fruition, dogecoin rose significantly last week. The rise has been so considerable that the crypto token’s market cap has surpassed that of its nearest rival Cardano.
Dogecoin's market cap is now around $19.68 billion, whereas that of Cardano is around $13.4 billion.
Dogecoin was trading at $0.14 at 4.50 GMT, Coindesk data shows. This was nearly 26 percent higher than its price on Monday ago. Thanks to the surge in dogecoin, its market cap is now $19.68 billion.
The currency has been rising for past few days, as shown in the chart below. The meme coin closed at $0.0591 on October 24, rising to $0.12 on Oct 29 and further to $0.15 on November 1.
At the same time, the market cap also rose proportionately. On Oct 24, the market cap was $7.89 billion, which rose to $12.15 billion on October 29 and further to $19.68 billion on Nov 2.
What is a dogecoin?
It is an open source peer-to-peer cryptocurrency that utilises blockchain technology, a decentralised system of storing information as a public ledger maintained by a network of computers called nodes.
Run by Dogecoin Foundation, dogecoin is known as an accidental crypto movement which values working solutions over speed of delivery and values collaboration and trust over competition and exclusivity.
The Dogecoin Foundation was established by members of the Dogecoin team in 2014 to provide governance and support for the Dogecoin project. In 2021 the Foundation was re invigorated as some faces joined it.
In the past, Musk and his tweets have played an instrumental role in jacking up its prices.
In May, he tweeted that merchandise for SpaceX could be bought with dogecoin just as Tesla merchandise. This led to an increase in dogecoin’s value by 10 percent. Even before this, dogecoin surged as much as 33 percent when he tweeted that Tesla merchandise could be bought with dogecoin.
Explicit endorsement by Elon Musk for this cryptocurrency is so profound that Dogecoin’s handle clearly says that “Elon Musk thinks we are pretty cool.”