Ilon Musk’s words about Dogecoin cryptocurrency supported its growth
Created as a joke meme, the digital asset Dogecoin managed to surprise investors in it with rapid growth. The cryptocurrency continues to be verbally supported by famous entrepreneur Elon Musk, with no verified information as to whether and how much Musk has invested in the asset at this time.
Whatever the case, the numbers speak for themselves. In just one day, on April 16, Dogecoin gained 112% and in the last seven days it has gained 407%. Meanwhile, at the beginning of April 17, the asset was at $0.32, showing high volatility, and not just upwards. Nevertheless, even $0.32 is a remarkable price result for the asset, which was worth only $0.07 at the daily low on April 13. At the same time, the price of $0.02 on January 28 of this year was already seen as an achievement, as it was a record value at the time.
In many ways, Dogecoin’s success became a symbol of general optimism about the cryptocurrency market, which affected investors in a significant number of altcoins. At the same time, from a technological point of view, April 16 was a landmark moment: within a day, the Dogecoin blockchain was able to “digest” transactions with this digital asset totaling more than $12 billion. In comparison, the Ethereum blockchain had “only” $6 billion worth of transactions in the same 24 hours.
In terms of technology, the Dogecoin distributed ledger has shown its practical scalability, which opens up the potential to use it as the basis for various cryptocurrency projects.
Analysts are looking closely at how Dogecoin is distributed. Just one digital address controls 28% of this cryptocurrency’s total supply, while 11 addresses account for 46% of all Dogecoin issuance. There is no guarantee that all 11 addresses do not belong to a single person or entity. But even having one digital address that owns 28% of all Dogecoin issuance means that the cryptocurrency can become very cheap if the assets from that address are sold off.
However, there is a “but”: if the market continues to be optimistic, other investors will potentially be able to buy out the entire volume of such supply on the market, which means that the Dogecoin price drop is not predetermined. However, the same statement is true for the probability of further Dogecoin price growth.
