The 'Perfect Storm' That Led Dogecoin To 60 Cents

Dogecoin's DOGE/USD price increased nearly 55% from its 24-hour low of $0.3838 all the way to the 60-cent market Tuesday morning, according to CoinMarketCap data. This growth came right after the coin reported a new all-time high of $0.45 Monday evening.

What Happened: The uptrend also closely follows Monday's announcement by Dave Kaval — president of Major League Baseball team Oakland Athletics — that the team processed its first Dogecoin payment in exchange for tickets in the league's history. He even invoked the #DogecoinToTheMoon hashtag while linking to the team's announcement about match seats being sold in exchange for the coin.

With Tuesday's high of over $76 billion, Dogecoin's market cap surpassed the market capitalization of major companies. Ben Weiss — the CEO and co-founder of cryptocurrency ATM operator operating over 2,300 machines — explained that the primary reason behind Dogecoin's ascent is the current climate in the crypto market overall.

See Also: How To Buy Dogecoin

Why It's Important: Weiss highlighted the promotion of Dogecoin by major personalities such as Tesla Inc TSLA CEO Elon Musk and Mark Cuban are other factors that largely contributed to the coin's price increasing. He also cited the crypto asset becoming more easily obtainable and a more surprising reason.

"Many people view Doge as the 'people's cryptocurrency' because it was created as a joke," Weiss said in an email statement. "Major players and corporations are unlikely to buy in and manipulate the market or understand that it could be a viable currency. Elon has echoed this sentiment. These factors have created a perfect storm for Doge, pumping the price to where it is today."

Dogecoin's rise comes as the total cap of the crypto asset market has reached $2.3 trillion, making it larger than the market capitalization of any company and possibly any asset except for gold.

Dogecoin itself recently reached a market cap of nearly $54.45 billion. And that's a currency the creator of which did not expect to go anywhere, as he showed when he sold all of his holdings for enough to buy a used Honda Civic in 2015.

Dogecoin trades around $0.5466 at publication time.