A nine-month-old dogecoin, a cryptocurrency has been soaring recently and touched its highest value since May, on Saturday. This has lead to the speculation that investors pump money into the cryptocurrencies to artificially inflate its price and later sell it off for a profit.
Another factor that may have led to the increase in the price of dogecoin is switching the virtual currency to auxiliary proof of work (AUXPoW) or merge mining. This will allow investors to transact currency by providing an additional security to the decentralised network, according to coindesk.
The sudden boost has driven market cap of dogecoin to $91 million eventually and around $40 million in one week, reported CoinDesk.
However, experts opine that this boost is short-lived.
"What's happening now is a lot of investors are buying in because they see dogecoin as an attractive investment," said a member of sub-reddit registered in the name of such_investor.
US Approves Bitcoin Swap:
A derivatives exchange has become the first to receive approval from US Federal Regulator on Friday as TeraExchange got approved from the Commodities Future Trading platform.
This would allow investors to switch over to digital currency under the approval of US Federal reserve.
Christian Martin, Tera Exchange's CEO told Wall Street Journal: "A robust price index also helps the growing bitcoin trading community to accurately mark-to-market positions while establishing trust and stability in this growing global marketplace."