Bloomberg
Dogecoin Frenzy Overloads Robinhood Crypto Order System
(Bloomberg) – The frenzy surrounding digital tokens takes its most bizarre turn yet in the price of a token made as a joke, pushing the crypto trading system on Robinhood Markets Dogecoin, spurred by the likes of Elon Musk and Mark Cuban, collected more than 110% Friday before dropping 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 great that investors trying to trade it on Robinhood crashed the site, the online exchange said in a blog post Friday. About $ 68 billion worth of Dogecoin changed hands in the past 24 hours from 4:45 p.m. Friday in New York, the highest number since June, data from CoinMarketCap.com shows. The rise of Doge is part of a rise in the number of altcoins, a term for all digital tokens that came into being in imitation of Bitcoin. Like most of them, its use has been limited, making it a resource for speculators expressing concern that a bubble is blowing up in a crypto world now worth more than $ 2.25 trillion. “We knew something big was going on, a lot of investors were chasing it. That led to a bubble,” said Scott Knapp, lead market strategist at CUNA Mutual Group. Is Dogecoin the pets.com of the cryptocurrency era? ”Interest in crypto is picking up again after companies from PayPal to Square began enabling transactions in Bitcoin on their systems, and Wall Street companies such as Morgan Stanley began accessing tokens to some of the wealthiest customers. All the while, crypto-die-hards who say the blockchain technology is rewiring the financial community have plugged in crypto and gotten rich in the process. theme was made as a joke by software engineers Billy Markus and Jackson Palmer in 2013. Musk caused a rally earlier this year when he posted a photo of a fake magazine “Dogue” with a dog in a red sweater. But Michael Novogratz, CEO of Galaxy Digital Holdings, is not buying the hype, since Dogecoin “doesn’t really have a purpose.” “It is reminiscent of GameStop,” he said in an interview with Bloomberg TV, referring to the meme stock mania hitting the markets. February. “I would be very, very worried if one of my friends were to invest in Dogecoin at these prices.” Since there are few arguments in favor of buying cryptocurrencies, chances remain that they will be crated, which has prompted novice traders to jump into the hype. vulnerable to steep losses. “The government has now pumped so much monetary and fiscal stimulus into the economy that even worthless assets are being offered,” said Michael O’Rourke, chief market strategist at JonesTrading. Still, the popularity of alt coins is hard to come by. ignore. While Bitcoin is worth more than $ 1 trillion, the token universe’s total market cap is now over $ 2.25 trillion, according to CoinGecko.com, which tracks more than 6,700 coins. Bitcoin’s dominance in the crypto world has declined 28% since the inception of OKEX Insights analyst Robbie Liu, citing data from Tradingview. The diminishing influence began to accelerate this month, he said in an email Friday, and Bitcoin now accounts for less than 54% of crypto market cap – the lowest level in nearly two years. strong momentum, ”said Pankaj Balani, the CEO of Delta Exchange, a leading crypto derivatives exchange, in a note on Thursday. Noting Ether’s recent record and increased activity in decentralized finance or DeFi, he added that “decentralized exchange coins will be in the spotlight in the coming days as the market has validated Coinbase at a valuation of $ 100 billion.” fundamentals are also rising. Cardano and Polkadot, both in the top 10 cryptocurrencies by market cap, have soared this week. “Polkadot and Cardano currently have very few ‘users,'” Shashwat Gupta, founder of Altcoinbuzz.io, said in an email Wednesday, although he added that a significant amount of development is being built on it. And it appears that Coinbase’s CEO, Brian Armstrong, may have been through something when he said after the listing that it marks a “shift in legitimacy” for crypto. provide more use cases for cryptos and should grow the crypto market, “said Edward Moya, senior market analyst for North America at Oanda Corp. (Updates with Dogecoin’s price drop on Saturday. Dogecoin was founded in 2013.) For more articles like this, visit us at bloomberg.com Subscribe now to stay ahead with the most trusted business news source. © 2021 Bloomberg LP