An illustration of Dogecoin can be seen on the hood of Ford during practice for the NASCAR Sprint Cup Series Aarons 499 on May 2, 2014.
Chris Graythen | Getty Images
Dogecoin rose again on Wednesday morning, increasing 20% as the cryptocurrency continued to benefit from speculative trading.
The digital coin, which is based on a Shiba Inu meme, traded at around 67 cents, up around 21% for the day. On Tuesday, more than 50 cents per share were broken for the first time.
This week’s surge precedes Tesla CEO Elon Musk’s planned appearance on NBC’s Saturday Night Live. Musk is a fan of Dogecoin, and the potential for him to talk about the currency on national television could increase demand.
Dogecoin was launched as a joke in 2013, at a time when the cryptocurrency boom was still in its infancy and a deluge of small, primitive coins was emerging. Doge has regained popularity, apparently boosted by the attention of billionaires like Musk and Mark Cuban and easy access through the free trading app Robinhood.
“I’m worried that as soon as the enthusiasm wanes, there will be no more developers there, no more institutions. But it has precisely this nickname of the popular coin,” said Michael Novogratz of Galaxy Digital on “Squawk Box”.
“If you think about the whole theory of what this crypto revolution is, there is something pure about what Dogecoin has done,” Novogratz said. “It’s a bit of a middle finger for the system.”
Crypto firm Coinbase lists Dogecoin with a market cap of $ 87 billion based on a simple multiplication of price and coins created. On paper, this is higher than the publicly traded Coinbase’s market cap of around $ 56 billion.
The surge in Dogecoin didn’t seem to affect the larger cryptocurrencies. The price of Bitcoin rose slightly in morning trading while the ether fell 4%.
Disclosure: “Saturday Night Live” is a television show hosted by NBCUniversal, the parent company of CNBC. CNBC owns the exclusive off-network cable rights to “Shark Tank,” in which Mark Cuban is a panelist.
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