Why You Should Be Paying Attention to the Dogecoin Rally
Dogecoin (CRYPTO: DOGE) might be a cryptocurrency that was created as a joke based on a 2013 meme of a shiba inu, but it's also returned more in just a few months than the S&P 500 has in at least 30 years.
As of April 20, Dogecoin was up in an incredible 6,560% year-to-date, and its market cap hads reached $50 billion, making it more valuable than well-established blue-chip companies like Ford. It would be easy to dismiss Dogecoin as a speculation-driven frenzy that's led to a massive bubble, but there's more to the story than that. Indeed, Dogecoin is one of several such assets this year to have gone parabolic, including larger cryptocurrencies like Bitcoin and Ethereum, meme stocks like GameStop (NYSE: GME) and AMC Entertainment, and even "non-fungible tokens", which have seen prices of as high as $69 million for digital artworks. These are all variations of the same theme, and a reminder that not every asset price is determined by fundamentals.
Image source: Getty Images.
Source Fool.com
