Yerevan (CoinChapter.com) — On Tuesday, May 4, the Dogecoin price hits a new market high, overcoming its previous record set on April 16. The reasons behind the explosion come from various factors, but support from the Facebook-fame Winklevoss Twins seems to be the biggest catalyst.
Gemini, a US-based cryptocurrency exchange operated by Cameron and Tyler Winklevoss, announced that it would offer Dogecoin trading services on their platform. Their announcement raised expectations that Dogecoin is on its way to becoming a serious contender in the top cryptocurrency brass, especially after staying in the market since 2017 as a mere joke token.
As per the press statement, Gemini has opened Dogecoin deposits. Nevertheless, the exchange ignored to provide additional details about when it would list Dogecoin-enabled trading pairs on its platform. Some supportive messages for the cryptocurrency followed, anyway.
“Dogecoin is the funniest and friendliest crypto in the observable universe. Yes, it’s a meme coin, but all money is a meme! Gemini now supports $DOGE. Woof,”wrote Cameron Winklevoss on his Twitter profile.
Meanwhile, his brother Tyler called the cryptocurrency “people’s money.”
“It’s organic, irreverent, and fun,” he added.
Dogecoin Price Booms
Traders flocked into the Dogecoin market following Gemini’s declaration. The DOGE/USD rate went up from $0.37 to $0.44. That marked an 18 percent increase in just two daily sessions. The Gemini-led upswing also gave Dogecoin bulls to look for more upside cues other than Elon Musk’s tweets.
The Tesla and SpaceX founder called himself a Dogefather in one of his latest tweets. Earlier, he tested the cryptocurrency market by constantly posting troll-like supportive tweets for the cryptocurrency. Every time he uttered the word ‘Dogecoin,’ the prices went higher.
Catching up with recent tweets of Winklevoss Twins on May 4 may have brought up some new ‘fuel’ for DOGE/USD to continue its ascent. Traders bought the prospect of institutional involvement in the token and raised their bids for it to target a dollar valuation potentially.
Tyler described DOGE as “transparent,” “predictable,” and “disinflationary,” also adding that its value is determined by its supply and peoples’ demand for it.
The Dogecoin protocol issues a fixed amount of five billion DOGE every year. Over time, this fixed, annual issuance of 5 billion DOGE will represent a much smaller percentage of Dogecoin’s overall money supply. This means the growth rate of Dogecoin’s money supply is actually decreasingnoted Tyler Winklevoss.
Therefore, it can mean that if the demand for DOGE tokens overcomes the supply, its price should go up in the sessions ahead.