- Dogecoin soared more than 40% to a new high near $0.70 on Wednesday.
- One analyst said Elon Musk’s upcoming appearance on SNL was driving the price action.
- Others said dogecoin’s appeal lay in the fact that it was “mocking a frothy market.”
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Dogecoin continued its red-hot rally on Wednesday, rising more than 40% to a new all-time high near $0.70.
Edward Moya, senior market analyst at trading platform Oanda, said it seemed people were piling into the asset ahead of Elon Musk’s upcoming appearance on Saturday Night Live on May 8.
Musk’s pro-doge tweets have been one of the main drivers of the breakneck rally, and traders do not want to miss out on any SNL-based price action, Moya said.
The Shiba Inu-themed token smashed through the $0.50 mark on Tuesday for the first time after the eToro exchange said it would add the option to trade the meme cryptocurrency, opening it up to its 20 million users. Gemini, the crypto exchange founded by the Winklevoss twins, followed suit on Tuesday.
Dogecoin was up 32% to $0.66433 as of 8.10 a.m. ET on Wednesday, according to CoinGecko, having earlier hit a record high of $0.68602.
“Dogecoin is surging because many cryptocurrency traders do not want to miss out on any buzz that stems from Elon Musk’s hosting of Saturday Night Live,” said Oanda’s Moya.
He said he thought Musk is likely to have a sketch about cryptocurrencies that could go viral, driving up prices. Musk has already hinted at such a sketch, tweeting on April 28: “The Dogefather. SNL May 8.”
But analysts at Mike Novogratz’s Galaxy Digital argued in a research report that Elon Musk is not the only thing behind dogecoin’s rapid rise.
Dogecoin’s appeal lies in the fact that it is a joke “mocking a frothy market with its playful indifference,” the report said.
The cryptocurrency had risen 1,047% over the 30 days to Wednesday and 26,623% over the last year, CoinGecko’s data showed.
However, the more traditional parts of the financial world are far more skeptical about dogecoin. Many analysts have warned potential investors that it is simply a huge bubble in an asset with no use cases.