A Tiktok dance challenge has spurred a 100% increase in Dogecoin prices
Cryptocurrencies are known for being volatile. The latest example of this is the Dogecoin (DOGE), which experienced a significant rally in the past few days.
According to data from CryptoSlate, the price of DOGE last Sunday stood at $0.0024. As of writing, its value has increased by 100% and it trades at $0.0048. In addition, it reached as high as $0.0056 on July 7.
The Dogecoin’s overwhelmingly positive price-performance was, surprisingly, triggered by the social media application TikTok. Users on the app created the “Dogecoin TikTok Challenge,” which circulated widely around the platform. The goal of the challenge was to convince all the users on the app to buy DOGE, which significantly increased the price of the cryptocurrency.
As of writing, the hashtag for this challenge (#dogecointiktokchallenge) has over 817,000 views. It has inspired several influencers and media outlets such as Jake Paul, Dave Portnoy, Bloomberg, Keemstar, Gizmodo to hold discussions on Dogecoin as well.
These are new heights to mainstream popularity that cryptocurrencies have not been able to achieve since 2017 or 2018. Other cryptocurrency projects have already caught on to the trend and are attempting to capitalise on the hype, such as the Tron (TRX).
Justin Sun, the entrepreneur behind Tron, is an active social media user and regularly posts content across his personal and company accounts. Up until this point, he has prioritised working on traditional venues such as Twitter, Instagram, Youtube and Weibo for the Chinese audience.
However, Sun revealed his intention to start creating TikTok content yesterday. Whether the strength at which Dogecoin propelled to new heights can be repeated remains to be seen.
While it is possible for the TRX to generate a steady stream of mainstream popularity with strategic TikTok trends and campaigns, many believe that the effect that the social media application had on DOGE’s price action may be a one-time thing.
CL, a crypto trader, tweeted on Monday that Dogecoin managed to achieve its trajectory because DOGE has a large circulating supply. As a result, a steady amount of DOGE supply is either dormant or lost, as exchange ask orders are thin, with actual liquidity in the market much lower.
Additionally, Dogecoin is one of the few cryptocurrencies on Robinhood. This is the only crypto platform that many TikTok users can easily access.
Finally, DOGE is known for being a “memecoin” and this may make it easier for the coin to invite imaginative challenges and social media mentions. Other cryptocurrencies may struggle to achieve this because they are usually seen as serious and technical.