Dogecoin volumes spike 1,900% in 2 days following viral TikTok videos. Trading volumes for meme-based cryptocurrency Shiba Inu have soared nearly 2,000 percent in the last two days, according to Messari data, as videos on TikTok urged users to invest. The price of the whimsical asset climbed 35 per cent over the same period to $0.035.
According to one of its founders, Jackson Palmer, Dogecoin is a “joke cryptocurrency,” so impromptu social media-based frenzies can be an appropriate use case. Cryptocurrency’s daily volume has remained well below $5 million over the past two months.
Qiao Wang, an independent cryptocurrency trader formerly at Tower Research suggests that for speculators and meme aficionados, dogecoin offers a different value proposition than other cryptocurrencies. The value of top cryptocurrencies “comes from monetary premium,” said Wang. “Dogecoin’s value comes from memetic premium.”
“The recent rise of dogecoin, a meme coin, should serve as a reminder to everyone in the space that the most popular use case for crypto is still purely speculation,” said Anil Lulla, former analyst at Bloomberg and co-founder of cryptocurrency research firm Delphi Digital.
The cryptocurrency was first released in 2013 and in 2014, gained a capitilization of US$ 60 million. As of 2018, over 113 billion coins were mined.