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Dogecoin, the cryptocurrency based on a viral dog meme from nearly a decade ago, jumped 30% on Tuesday to set a new high at over 50 cents per coin.
The cryptocurrency was trading at around 54 cents at noon, up about 30% for the day, according to data from Coin Metrics. Dogecoin rose to around 40 cents per coin last month before dropping sharply for several days after the calendar changed to April 20, a date widely celebrated as a marijuana-themed holiday.
Dogecoin was started as a joke in 2013 amid a boom in primitive cryptocurrencies. It was based on a popular internet meme at the time that featured a Shiba Inu dog and cartoon-style text over the image. Its rise in recent months has been highlighted by many as a sign of scum and speculation in the financial markets, especially among young investors who started trading during the pandemic.
The room was boosted in recent weeks by billionaires Elon Musk and Mark Cuban, who have both mentioned Dogecoin on Twitter several times. Cuban said the increased interest and use of Dogecoin made it more than a joke.
“Memes like Doge only work if they gain utility and users use them for that utility. As long as you can spend Doge, because we know his annual inflation rate is set at 5 billion coins, it can gain value as the utility grows. It becomes like any other currency, “Cuban said on Twitter Sunday.
“As long as more and more businesses accept doge for products / services, Doge can be a usable currency because it MAY hold its purchase value better than a dollar in your bank. If interest rates go up arrow or if the amount spent drops or stagnates, Doge will too. Yes, a joke is legitimate now, “he added.
Another crypto asset that defines a new high on Tuesday was Ether, the currency linked to the Etherum blockchain. Bitcoin, however, slipped more than 6%.