Dogecoin’s price continued to fall on Thursday morning, two days after supporters celebrated ‘dogeday 4/20’, but its online community of fans remain undeterred.
Dogecoin (DOGE-USD) was down 16% to $0.2822 (£0.2). On Tuesday, it had hit $0.4252 and its market capitalization briefly crossed $50bn as supporters tried to push the price to between $0.69 to $1.
Despite the falling price, Twitter users who have bought the currency say they continue to ‘hodl’ (a deliberate misspelling of ‘hold’ that refers to buy-and-hold strategies in the context of cryptocurrencies) the joke token.
@DogecoinRise, who has 303,000 followers, tweeted: “We’ve Came A Long Way From Waiting For #DOGE To Get To $0.01-$0.05 This Dip Is Nothing To #DOGE Supporters Who Been Here Since Day. #DogecoinRise”.
Snickers, owned by Mars Inc, was among brands supporting dogeday. Earlier, it once again showed solidarity with the ‘dogearmy’: “Everything is #doge & Snickers”.
And perhaps they do still have reason to celebrate as dogecoin has come a long way. As Forbes reported, “Dogecoin is today the sixth most valuable cryptocurrency, an all-time high for what was originally conceived eight years ago as a meta joke about monetary value and the internet.”
Dogecoin has soared more than 400% in the past week and by more than 5,000% since the start of the year.
“Its low price per coin has surely contributed its rise, allowing investors who might be unable to afford more expensive cryptos such as bitcoin or ether to buy up dogecoins,” the report added.
“Put another way, $1,000 invested in dogecoin at the start of the year would be worth over $57,000,” MarketWatch calculated.
And earlier Eric Schiffer, chief of private equity firm The Patriarch Organization, told Yahoo Finance: “the current valuation even at the pullback is still totally insane.”
But the picture isn’t as rosy as online fans may be painting it: “Fans of dogecoin have ignored warnings from sceptics who point to the dangers of investing in an asset that doesn’t boast the utility or “store of value” concepts linked to bitcoin and Ethereum,” MarketWatch said.
Both cryptocurrencies have come under selling pressure in the wake of Coinbase’s (COIN) hotly anticipated IPO last week but they pared some losses. Both continue to attract attention from mainstream companies.
“I think we could pull back to $20,000 to $30,000 on Bitcoin, which would be a 50 per cent decline, but the interesting thing about Bitcoin is we’ve seen these kinds of declines before,” said Scott Minerd, chief investment officer at Guggenheim Partners told CNBC.
He said this is part of “the normal evolution in what is a longer-term bull market,” and anticipates prices to eventually surge to as much as $600,000.