Dogecoin (DOGE) is now the world’s hottest and quirkiest cryptocurrency. Since emerging as a meme coin, the crypto that started as a joke in 2013, has risen since 2020 to compete with other established cryptocurrencies.
In May, Dogecoin (DOGE) emerged as the third most-traded cryptocurrency on the world’s largest crypto exchange, Binance, with a volume of $116 billion — not bad for a crypto that started as a joke.
Dogecoin’s tremendous rise, according to data from Crypto Parrot, has seen the crypto ranking in the same category as Bitcoin and Ethereum. On Binance, Ethereum recorded the highest trading volume on the platform at $191 billion, followed by Bitcoin at $188 billion.
Binance is not the only exchange DOGE is gaining a spotlight on. On the Huobi crypto exchange, Dogecoin also ranked third with a trading volume of $51 billion after Bitcoin by just $13 billion. Ethereum topped the chart with a trading volume of $85 billion.
Why is Dogecoin trading this high?
While there might be many reasons, much of Dogecoin’s rise can be attributed to the power and influence of influencers like Tesla CEO, Elon Musk. The proverbial “dogefather,” who can send crypto prices soaring or dipping with the stroke of a key, has been instrumental in Dogecoin’s sudden surge.
In February, Dogecoin prices rose ahead of Elon Musk’s SNL debut, sank 15% after he said Dogecoin is “a hustle” on live TV, then popped again over 30% in mid-May when he tweeted that he was working with Dogecoin developers.
Working with Doge devs to improve system transaction efficiency. Potentially promising.
— Elon Musk (@elonmusk) May 13, 2021
Dogecoin also gained special attention in May after Musk announced that Tesla would no longer accept Bitcoin as payment for vehicle purchases over climate concerns.
Tesla & Bitcoin pic.twitter.com/YSswJmVZhP
— Elon Musk (@elonmusk) May 12, 2021
The crypto king said Tesla was looking for other energy-efficient cryptos, and many speculated that DOGE was the possible alternative, subsequently driving Dogecoin’s interest through the roof.
Also Read: Fundamental Trading: When to Buy, Sell, or Hold Currencies
What’s the implication of Dogecoin’s trading volume?
Dogecoin’s huge trading volume on the Binance and Huobi exchanges is an indication that the meme coin is competing heavily against established cryptos.
While analysts believe DOGE’s price surge might be a bubble that will burst soon, the coin is poised to surge further, especially as it’s backed by celebrity support led by the Tesla boss, Elon Musk.
