- Dogecoin rallied 37% in 24 hours to a record high of $0.084945 on Monday, according to data from CoinMarketCap.
- Dogecoin, based on the "doge" meme, was initially started as a joke but has since gained a following.
- Elon Musk, Snoop Dogg and Gene Simmons have tweeted about the cryptocurrency recently.
Dogecoin is surging after billionaire Elon Musk and other celebrities appeared to back the cryptocurrency on Twitter.
The meme-inspired token rallied 37% in 24 hours to a record high of $0.084945 at 10:20 a.m. ET on Monday, according to data from CoinMarketCap. As of 12:25 a.m. ET, dogecoin was up 18% at a price of $0.08008.
Dogecoin's stellar run has boosted its market value to over $10 billion, making it the No. 10 digital coin on CoinMarketCap's ranking. At its intraday peak Monday, trading volume in dogecoin had reached around $16.9 billion in the previous 24 hours.
Dogecoin was created in 2013 and is based on the then-popular "doge" meme that portrays a shiba inu dog alongside multicolored text in comic sans font. The cryptocurrency was initially started as a joke but has gained a following.
Retail investors have pumped up dogecoin's price recently, taking their cue from Musk. The Tesla CEO has tweeted about dogecoin several times over the years.
More recently, he posted a picture of a fictional "Dogue" magazine — a play on the fashion title "Vogue" — leading to an 800% surge in dogecoin's price.
Musk subsequently threw his support behind bitcoin, saying it is "on the verge of getting broad acceptance" in finance. In an SEC filing Monday, Tesla said it has bought $1.5 billion worth of bitcoin and will accept the cryptocurrency for payment of its products.
In his earlier statement of support for bitcoin, Musk he didn't have a "strong opinion" on other virtual currencies and that his tweets about dogecoin were meant as jokes.
"But fate loves irony," Musk said recently on the social audio app Clubhouse. "The most entertaining outcome and the most ironic outcome would be that dogecoin becomes the currency of Earth in the future."
Musk has made several recent tweets about dogecoin. Just two days after saying he planned to take a break from Twitter "for a while," Musk returned, posting dogecoin memes and calling the token "the people's crypto."
He has been joined by the likes of Snoop Dogg and Kiss singer Gene Simmons in posting tweets backing dogecoin. Snoop Dogg, whose real name is Calvin Cordozar Broadus Jr., tweeted at Musk with a parody of one of his albums. The words on the album cover are replaced with "Snoop Doge" while the doge image covers the rapper's face.
Simmons — whose real name is Gene Klein — has actively promoted dogecoin to his followers, tweeting popular slang phrases in crypto like "HODL" and "to the moon." The rocker said he made a "six figure" investment in dogecoin and owns other cryptocurrencies, including bitcoin.
The episode is reminiscent of the late-2017 crypto craze, when bitcoin's price skyrocketed to almost $20,000 before plummeting close to $3,000 the following year. Multiple celebrities had hyped crypto in 2017, with some endorsing a controversial form of crowdfunding known as an "initial coin offering."
Dogecoin's resurgence in the last few weeks has also been down to enthusiasm from a Reddit group called SatoshiStreetBets. Like the WallStreetBets group that helped fuel the recent GameStop rally, SatoshiStreetBets aims to pump up the prices of cryptocurrencies.