The GameStop rally has shown the sway that amateur investors on Reddit have over the stock market. After the short-selling of the retailer's stock failed, the Reddit community known as WallStreetBets has turned its gaze elsewhere.
The subreddit may have now spiked a growth spurt in Dogecoin (DOGE)'s value, which has gone up 80% and hit $0.0138 in net value. Almost overnight, Doge went from a middling coin to a coin with plenty of growth potential.
Yet, Dogecoin is far from tangible value as the $1 threshold is the first hurdle it would need to clear to gain any credence. Data from CoinMarketCap and Tradingview, though, shows that there has been a huge rally around Dogecoin.
In addition, the trading volume of the altcoin has gone up 800%, which is another impressive metric. Further investigation shows that the growth spurt may be coming from the same subreddit that safeguarded GameStop against greedy short-sellers.
One of the moderators posted a short question that seemed to have inspired Redditors to act, and it was as such: “Has Doge ever been to a dollar?”
Immediately after the query, the #dogecoininto1dollar began trending on Twitter, leading to a surge in the value of Doge.
Naturally, cryptocurrencies are somewhat more of a bubble than are stock. However, it's worth noting that social media often ends up driving the value of cryptocurrencies.
Elon Musk has often tweeted about cryptocurrencies, and not least Dogecoin. Maybe as a joke, maybe seriously, the tech entrepreneur has often been able to bolster the price of speculative assets such as Doge.
In the most recent case, though, that is WallStreetBets. Will the subreddit follow through and try to catch up the Dogecoin price up to $1? That remains to be seen.