Dogecoin Rallies Over 50%, Crashes Robinhood Token Trading - TCR

• Dogecoin began its accelerated upsurge on Tuesday morning, rallying from $0.4 to $0.6 in about 7 hours, a 50% rise by 10:00 ET (14:00 UTC)
• Robinhood’s partial outage started at around 9:30 ET (13:30 UTC) and was resolved by 11:15 ET (15:15 UTC)
• Dogecoin’s rising popularity led to Robinhood becoming one of the top 10 downloads at the Apple app store

The 2021 market hasn’t been kind to just Bitcoin (BTC) but several other altcoins too. According to CoinMarketCap.com, Dash (DASH) spiked by 15%, Ethereum Classic (ETC) jumped 30%, and DeFi tokens, Force DAO (FORCE), and Tierion (TNT) surged over 1,000% on Tuesday. The crypto rallies continued their bullish trends, raising the overall crypto market cap beyond $2.25 trillion. But the most notable rise was that of Dogecoin (DOGE), trading at $0.68, with a market cap of over $88 billion. 

DOGE Upsurge Crashes Robinhood

The meme currency began its accelerated upsurge from $0.4 on Tuesday morning, reaching $0.5 at 8:00 ET (12:00 UTC) and $0.6 in the next two hours. Along with raising DOGE by over 50%, the frenzy also crashed the online broker, Robinhood’s trading app. According to the website DownDetector, the “partial outage” started at around 9:30 ET (13:30 UTC) and was resolved by 11:15 ET (15:15 UTC).

DOGE Development

If assessed, it’s astounding how a currency created as a joke some eight years ago is one of the top-5 cryptos used in the market gimmicks. Be it Tesla boss, Elon Musk, wanting to put DOGE on “the literal moon” or the Oakland A’s baseball team offering two-seat pods for 100 DOGE, one thing is certain, the token is here for the long haul.

With Dogecoin’s rising popularity capturing the interest of many on Wall Street and even the Federal Reserve, Robinhood’s trading app is one of the top 10 downloads at the Apple app store. Although, the largest crypto exchange, Coinbase Global, has yet to list DOGE. However, Tuesday recorded Coinbase shares down by over 5%, the lowest since its market debut. 

FOMO Driving DOGE Surge

The spotlight has been cast on altcoins; amid the current boisterous digital assets’ adoption and long since hesitant traditional firms. With Ether and Doge exhibiting record rallies, BTC has taken a backseat, feels Edward Moya. He is the senior market analyst at Oanda. He notes, crypto traders’ fear of missing out (FOMO) “on any buzz” stemming from “Elon Musk’s hosting of Saturday Night Live” is the main force driving Dogecoin.

Unsustainable Surges: A Matter Of Concern

But the rallies could be unsustainable, warns Mike Novogratz, chief executive officer of Galaxy Digital Holdings. Notably, he’d be “very, very worried” if any of his friends were to invest in DOGE. And Novogratz isn’t alone. To Mike Bailey, this seems like “a pinball game”, with investors zipping from “one hot dot to another.” He is the director of research at FBB Capital Partners. He said, “cryptocurrencies may have become a new asset class,” but these surges “seem unsustainable.”