Dogecoin and rival cryptocurrency Ethereum hit all-time highs on Tuesday, May 4 in London following a rise in institutional interest in both tokens. The meme-inspired digital coin jumped as the price of Bitcoin dropped by 5.51 percent. In recent months, Dogecoin has attracted more interest among serious investors, but the digital coin is still seen as very risky by many insiders.
The price of dogecoin has soared in the past 24 rising by 34.51 percent.
This significant surge has been in the wake of news the popular trading platform eToro will offer the digital coin to its customers.
The announcement helped push dogecoin’s price above $50 billion, meaning today has now hit an all-time high at £0.40.
The online investing platform eToro has more than 20 million registered users worldwide and had recently faced criticism from customers for not offering the digital coin.
The current surge has been attributed to eToro now allowing users to buy and sell Dogecoin on its site.
You still cannot buy this digital coin on all trading platforms, including Coinbase and Revolut.
Other trading platforms which let you buy and sell Dogecoin include Binance and Kraken.
Paypal is currently rolling out acceptance of cryptocurrencies, however, dogecoin is not currently on the list of supported digital coins.
Dogecoin has made remarkable gains throughout 2021, initially prompted by SpaceX creator Elon Musk’s endorsement of the cryptocurrency.
Michael Kamerman, CEO of digital trading platform Skilling, said the digital coin has set itself apart from other cryptocurrencies “because it is inflationary”.
This means there are no limits on the number of digital coins permitted to be in circulation.
However, above all the cryptocurrency expert claims the main driver behind dogecoin’s success is its popularity with online communities and support from high-profile business magnates.
Longevity is difficult to predict and guarantee when it comes to trading currencies and commodities.
Mr Kamerman said it is difficult to accurately access the future of the digital coin but believes the price will remain unchanged in the short term.
He added: “Right now, investors and traders are almost encouraged to take the risk.
“The FOMO factor is at fever pitch and everywhere you turn market exuberance still exists.”
The expert added the volatility associated with the digital coin will likely “taper off” in the coming years with peaks and troughs likely.
Many dogecoin enthusiasts believe there is great potential in cryptocurrency and its future.
However, Mr Kamerman told Express.co.uk the currency will need to address ongoing issues with “scalability and security issues” in order for intrinsic long-term value to be attained.