It looks like the interesting drama of the prior week, when Wallstreetbets, a popular Reddit group pumped GameStop, AMC, and Dogecoin (DOGE), spilled over into the weekend as Stellar (XLM) also saw price increases in tandem with XRP.
“Pumpamentals,” which in a way indicates a retail presence fueled by the social media hype, has often spiked Dogecoin’s price, such as when Doge soared to a high of $0.0736 on Jan. 29. The same scenario played out when XRP rallied to highs of $0.5351 on January 30 as the cross-border token became the new coin in the spotlight of Wallstreetbets, a Reddit group.
Stellar (XLM) also attracted some attention from Satoshistreetbets, another subreddit bringing the XLM price to highs of $0.3834 on Jan. 29 before a retreat and then a bounce back to its current price of $0.3149.
XLM/USD Daily ChartXRP is currently trading at $0.4100 after sizable gains, up from intraday lows of $0.28. TheTIE data also shows that the rise in XRP price coincided with a sharp spike in tweet volume.
After rallying more than 800%, the DOGE price has dropped 70% from its recent all-time high of $0.0736 as r/Wallstreetbets’ attention shifted to other coins like XRP, XLM.
The first and largest cryptocurrency by market cap, Bitcoin (BTC) also got pumped on Jan. 29 by the richest man in the world, Elon Musk tweet and profile change with BTC price surging from $32,500 to $38,000 in a matter of minutes. However, lack of follow on caused the Bitcoin price to drop substantially to $33,000 in 24 hours.
The Dogecoin case is quite peculiar because unlike other tokens, Dogecoin hasn’t seen any protocol updates or developments since 2015. Indeed, DOGE’s success depends more on community effort and the power of memes than on technical set up.
Commenting on the link between social media activity and the price of Dogecoin, Joshua Frank, CEO of TheTIE, stated, “Everyone universally agrees that no one is investing in ‘fundamentals’ of Dogecoin.”
Jan. 29 Twitter takeoff for Dogecoin is not the first cycle of social media hype in the history of the Shiba Inu themed cryptocurrency. Back in 2020, Tesla CEO Elon Musk tweeted about Dogecoin twice, and the token price rallied afterward in both cases.
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