The current stage of the bull market cycle and Coinbase’s direct listing later this week are likely pushing dogecoin and other cryptocurrencies higher, said Adam Levine, managing director of podcasts and audio at Coindesk, who added that there typically isn’t just one factor that drives up the price of the meme token.
“One of the things that’s interesting about doge is that whenever there’s kind of excitement around cryptocurrency, people who don’t really know a lot about cryptocurrencies get pulled into the doge ecosystem,” Levine told Insider. “And that’s partly because it’s cute, and it’s not intimidating. It’s partly because the tokens are very cheap.”
Momentum could also be pushing up dogecoin’s price right now, he said. A lot of early backers of dogecoin considered it “dead” coming into this year, and the coin’s wild rally was largely unexpected. Now that the price has stayed elevated, it appears to be ticking higher when the broader crypto market gains.