Very few could have expected that this would ever happen again, but here we go! A few days ago, a meme coin DOGE has entered the top 10 cryptocurrencies by market capitalization. Not only that, it even outpaced projects like Chainlink (LINK) and Litecoin (LTC).
The reason for this is the WallStreetBets movement, which has caused quite a stir in the financial world in the past few days. The movement was dedicated to buying Gamestop stock in order to squeeze hedge fund Melvin Capital. The hedge fund has already suffered considerable losses in the billions.
How Does That Affect DOGE Price?
A few days ago, large trading platforms (such as RobinHoodApp) stopped trading GME, AMC, and NOK stocks. The possibility to buy was blocked, in some cases, trading platforms even closed traders’ positions without their consent.
In response, WSB (WallStreetBets) decided to surprise and prank everyone with the help of DOGE coin. The community has rallied and started to buy DOGE like crazy, mostly on the Binance crypto exchange. DOGE rose over 1,000% in less than 24 hours, trading volume was higher than Bitcoin’s.
So far, DOGE has remained in the top 10, achieving remarkable results. How many opportunities for improving DOGE are left as well as how many people are willing to buy DOGE at this price level remains to be seen.
DOGE: A Trigger for the Next Alt Season?
DOGE coin created a scenario that altcoin lovers especially like to see. A cryptocurrency with a relatively large market cap increases significantly. The likelihood that investors will benefit from this increases as well. Theoretically, these profits could be used to buy other altcoins. This could serve as a trigger that would cause another alt season.
The only problem in this context is that thanks to the tweet from Elon Musk, Bitcoin also picked up strongly and is currently trading at over $33,000. Whenever Bitcoin increases in price, many investors sell their altcoins in the hopes of making more profit with Bitcoin. Later they buy the same altcoins again at a lower price.
The market conditions are currently changing rapidly. The entry of the WallStreetBets community into the cryptocurrency market could bring long-term changes with it. It’s huge, willing to ‘fight’ the traditional financial industry, and, in sum, has a large amount of capital.
Conclusion: Positive Outlook for the Crypto Market
The rapid rise of DOGE coin will boost the crypto market in many ways. It not only generates more media coverage but also attracts more capital for the entire sector. Many investors are now tired of traditional trading platforms and prefer to devote themselves to alternative assets and trading platforms.
There are already many forecasts that DeFi in particular will benefit from the current events. What do you guys think? Feel free to share your thoughts in the comments!