Both the cryptocurrency Ether, which is part of the Ethereum platform, and the meme currency Dogecoin set new price records on Tuesday. Ethereum was able to climb to the mark of 3500 US dollars, at the beginning of the year the price was still around 1000 US dollars. At the hour, Ethereum gave way and is still at $ 3,300. Meanwhile, the Dogecoin climbed a value of over 50 US cents for the first time. In January the coin was still trading for less than one US cent.
The spectacular increase in price even lifts Dogecoin to fourth place of all crypto currencies by market capitalization. This is calculated from the market value times the number of units, which is currently around 75 billion US dollars for Dogecoin (around 62 billion euros). Ethereum is worth $ 383 billion, or roughly EUR 319 billion. For comparison: The share of the car manufacturer Volkswagen currently has a market value of around 124 billion euros.
Investitionsbank goes Ethereum
Ethereum should benefit from various good news: For example, the European Investment Bank has for the first time the issue of a 100 million euro bond was processed using the public Ethereum blockchain. Various big banks were involved in the implementation of the business, bankers referred to the procedure compared to the financial press as “revolutionary” and “Gamechanger”.
Furthermore, the hype about non-fungible tokens, or NFTs for short, and their record sales at art auctions, is likely to do its part. These NFTs are mostly issued via the Ethereum blockchain, for which a separate standard is available. And last but not least, the planned switch from mining to proof-of-stake ether should also make it interesting. With this method, you have to leave a sum of crypto money in a smart contract if you want to reap the rewards for new blocks. There is no need to calculate hash values with mining hardware.
Many Doge. Much Hodl. So wow.
It is unlikely that the European Investment Bank will also issue bonds via Dogecoin. The hype about the fun currency is mainly carried by social media such as Reddit and Twitter, and celebrities like Elon Musk also like to fuel it. The Dogecoin was originally a joke between the two programmers Billy Markus and Jackson Palmer and came onto the market in 2013 as part of an earlier crypto money boom. Technically, it is based on Litecoin. Its popularity is mainly due to the choice of a cute dog meme as a logo, with images of the Japanese dog breed Shiba Inu.
Apart from the meme factor, it remains a bit of a mystery why so many rush to the Dogecoin. No money supply limit promising value increases like with Bitcoin, no big technical visions like with Ethereum – just a cute dog that gives rise to funny tweets. Apparently reason enough for a demand that caused dropouts at the US broker Robinhood, which also offers crypto money trading. It is already the second time in a few weeks that there were problems with Robinhood because too many users rushed to the Dogecoin, writes the tech magazine The Verge.
Bitcoin dominance crumbling?
Often it is actually the oldest and best-known crypto currency Bitcoin, in whose waters other currencies also experience price increases. But not this time, the gains from Ether or even the Dogecoin are searched in vain. After the all-time high of 64,000 US dollars, the Bitcoin exchange rate fluctuated in the corridor between 50,000 and 60,000 US dollars. Yesterday’s rise to over 58,000 US dollars was unsustainable; the price is currently just over 54,000 US dollars. Many other coins such as Ripple or Stellar were also weak.
It is also noticeable that the so-called Bitcoin dominance has fallen below the value of 50 percent. This value is collected by analysis services such as Coinmarketcap and Coingecko and indicates what percentage of the total market capitalization of all recorded cryptocurrencies is attributable to Bitcoin. Currently the value is around 45 percent, Ethereum can record around 17 percent. It would be premature to read from this an end to the dominance of Bitcoin: After the last big crypto hype in 2018, the crypto currency has already seen lower dominance values below 40 percent.