Dogecoin (DOGE) has reached yet another record high, jumping up over the past 24 hours by 12 percent. At the time of writing, Dogecoin sits at just over $0.60 (£0.43) per coin and shows no sign of slowing up.
Unlike Bitcoin, the amount of Dogecoin is infinite, which has caused confusion among market experts.
Theoretically, if there is no limit to the amount of Dogecoin available, it should essentially be worthless.
However, it has skyrocketed by a staggering 14,000 percent in value in 2021 alone, leaving many crypto-experts scratching their heads.
One expert believes that hype is the reason for the increasing value of Dogecoin.
The more interest it generates, the higher the value goes.
For example, SpaceX chief Elon Musk has vowed to put a “literal Dogecoin” on the Moon which piqued the interest of the Twittersphere.
The hype and the fact it is based on a meme has ed to the coin being taken up by amateur crypto-investors as a “two fingers up” to the rest of the crypto-world.
Antony Portno, founder of Traders of Crypto, said: “On face value, it is a complete mystery as to why Dogecoin continues to grow, it is a meme coin, with bad tokenomics and no development.
“There has been much talk about getting Doge to $1, and whilst it has seemed like an impossible dream for a while, things are starting to pull in the right direction.”
However, as the coin is still largely seen as a joke based on a meme, its price could turn sour.
Mr Portno said that if the hype stops, Dogecoin could “end in tears”.
He said: “So will it all end in tears? Quite possibly, but it was overhauled at 5 cents and if the momentum moves the other way things could get nasty.
“As long as you are investing sensibly then it should be a fun ride.”