Cryptocurrency Dogecoin rose more than 50% after Elon Musk tweeted his support for it. The tweets occurred two days after Musk said he intended to take a break from Twitter. Dogecoin soared to $0.05798 according to data on blockchain websites. Soon after Musk followed it up with “Dogecoin is the people’s crypto.”
In the meantime, competitor cryptocurrency ethereum is also on a record-setting rise. Ethereum grew to a record high of $1,698.56 before giving up some of those gains to trade 2.7% lower in early London trading. Bitcoin, the most famous cryptocurrency, also fell 1.2% to $37,184.
With the limited supply of Bitcoin and the large energy costs associated with verifying transactions through mining, Bitcoin is considered more a store of value than other cryptos such as Ethereum.
Cryptocurrencies are gaining strength with more mainstream investors. The excitement increased the total market price of all cryptocurrencies above $1 trillion for the first time earlier in January.
The positive sentiment in the crypto space relies on increased mainstream adoption, as well as on successful developments of technological infrastructure.