Dogecoin’s record-breaking rise shoots ‘joke’ cryptocurrency to wider attention

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I miis perhaps the ultimate symbol of late capitalism: a digital currency that started as a joke, now worth more than the Ford motor company, BP or Tesco.

Riding a wave of speculative interest despite Covid-19 triggering the worst global recession since the 1930s Great Depression, Dogecoin has been a huge hit with amateur investors. It is a cryptocurrency based on an internet meme – a humorous online phrase or photo, which on this occasion is a dog – and has shot to wider attention with a record-breaking rise in value in recent weeks.

Backed by famous supporters including the Tesla founder, Elon Musk, the rapper Snoop Dogg and the Kiss bassist Gene Simmons, the digital asset similar to bitcoin jumped by more than 40% on Wednesday to reach $0.68 (£0.49) against the dollar, according to CoinMarketCap.

With a surge of more than 14,000% since the start of the year, Dogecoin’s market capitalisation – the combined value of every coin – has now hit more than $84bn, equivalent to the annual economic output of Sri Lanka.

Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live.” said Edward Moya, senior market analyst at the financial trading platform Oanda.

“Also known as the Dogefather, Musk will undoubtedly have a sketch on cryptocurrencies that will probably go viral for days and further motivate his army of followers to try to send Dogecoin to the moon,” he said.

Musk already has form as a crypto maverick, buying $1.5bn of bitcoin with cash reserves at Tesla. He has previously tweeted support for Dogecoin in what may be best understood as the perpetuation of an online joke.



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