Blockchain data shows that the upcoming DOGE pump was backed by ‘smart money’. The cryptocurrency has received $160M in investment from various hedge funds, groups of investors who pool their resources to take on high-risk, high-reward investments. This is a significant move for DOGE because it could help push the coin past other cryptocurrencies like Ethereum and Ripple where it currently sits at number 18 with a meager market cap of $2B USD.
An anonymous fund manager who runs a $100M crypto hedge fund said, “$2B is still not much for the whole crypto market. This pump will attract more interest from retail and institutional investors alike as they see Dogecoin as a viable coin to invest in due to it being undervalued at its price point”
The Dogecoin community has been discussing the pump in various forums and blogs saying, “We all knew this will happen when we saw the volume on Binance and accumulation by 3 parties. The order book was getting ready for a shake up”.
Dogecoin might see an increase because its supply is small with 100B coins in circulation. Currently there are only 50B Dogecoin remaining to be mined which is significantly less than other cryptocurrencies like Bitcoin with its 21M supply or Ethreum with 96M.
The coin might also see an increase because it’s one of the oldest coins in existence with its launch dating back to 2013 when the coin was created by Billy Markus. This might draw more interest from investors who want to preserve their capital due to the recent drop in value of most cryptocurrencies within the past few months.
Dogecoin is also a deflationary cryptocurrency which means that there is a finite supply and its value will increase as demand increases, similar to gold or diamonds.
The Dogecoin community has been very supportive of the coin since its inception, which means that they are likely to hold onto their coins leading up to the pump. The Dogecoin community is also known for philanthropy initiatives like sponsoring olympic athletes or NASCAR drivers. This might lead to an increase in demand as well since many people might be looking to acquire the coin.
If DOGE manages to pump, it has the potential to hit Etheruem’s current market cap of $28B USD or even Ripple’s at $92B that is currently at number 2 in terms of overall market cap . If this happens, Dogecoin would be priced at $0.01 USD.
The founder of Dogecoin, Jackson Palmer said back in September of 2017, “Doge will always be my baby and I plan on continuing to serve the community as best I can — so please still offer your support! But when it comes to price predictions or comments about markets are outside of my wheelhouse”.
The price of Dogecoin has been going up since then and it has reached a high of $0.007 USD in June 2018 which is a factor that might contribute to its success.
Dogecoin might be a pump and dump but the fundamentals for DOGE look good at the moment so it might be worth investing some money if you have some spare capital looking for an opportunity to invest.
If the DOGE pump happens, there will likely be a domino effect where other coins that are currently on life support or suffering from low volume like NXT, IOTA, NEO might pump as well since they are correlated with the market in general.