Dogecoin has had a wild year.
The cryptocurrency started as a joke in 2013 is up 6,287% since the beginning of 2021, hitting a new all-time high of $0.45 on Wednesday.
So what sparked the rally? Dallas Mavericks owner Mark Cuban said the coin is a better investment than a lottery ticket on an appearance at the Ellen DeGeneres show and Tesla CEO Elon Musk teased his upcoming stint as the host of Saturday Night Live with a tweet that read, “The Dogefather SNL May 8.”
But it’s Dogecoin’s meteoric rise this year that one crypto bull is calling a mania, and with Wednesday’s catalysts, it’s hard to argue that.
Meltem Demirors, chief strategy officer at CoinShares, said this week that there’s a good reason her firm has steered clear of the meme-coin.
“It’s a classic sort of bubble, in my view,” Demirors said. “I’m not saying it’s good or bad. …Dogecoin is not for me. My firm does not produce analysis on dogecoin for a reason. We don’t have a dogecoin ETF in the market. We don’t trade dogecoin.”
“At the end of the day, we have these retail manias, and I think what’s happening with dogecoin is definitely a mania and we see this reflected in the price,” Demirors continued, adding that the rise in dogecoin shows some people that “investing is entertainment.”
Demirors isn’t the only crypto bull sitting out dogecoin. Galaxy Digital CEO Mike Novogratz said recently that what is happening with dogecoin is “even more bizarre” than what happened with GameStop (NYSE: GME) in February.
“Dogecoin speaks to a lot of the same movement that GameStop did,” Novogratz said. “There is a crazy excitement [from] very young investors around meme coins and meme ideas. I mean, it’s shocking to me that GameStop continues to hold any value. Dogecoin is even more bizarre in that respect.”