Dogecoin is now among the top five most valuable cryptocurrencies in the world, after nearly quadrupling in price over the last 24 hours.
The meme-inspired cryptocurrency hit a new record high on Friday, rising above $0.44. Just one year ago, it was worth less than two tenths of a cent.
“The main drivers behind dogecoin’s popularity is its online communities, coupled with support from high-profile business magnates like Elon Musk,” Michael Kamerman, CEO of fintech firm Skilling, told The Independent.
“It’s moved by headlines, tweets, celebrity or corporate endorsements, and while that’s likely belittled by ‘traditional’ investors, it’s what brings the masses to cryptocurrencies.”
The current price run could encourage even more people to take risks and invest large amounts in the hope of making a quick profit, Mr Kamerman warned, adding that “the FOMO factor is at fever pitch”.
A post to the popular r/dogecoin forum on Reddit called on fellow investors to not cash out yet, and has so far received more than 10,000 upvotes.
“Now that $1 is an imminent reality, we should all pledge to HODL to $10,” user Mrrossisp stated. “Is that fair enough?”
One of the most prominent advocates of dogecoin has been Elon Musk, who revealed earlier this year that he had bought some for his infant son.
The technology billionaire, who briefly ranked as the world’s richest person earlier this year, has also been involved in the most high-profile cryptocurrency investment of the year through his role as the CEO of Tesla.
The electric car maker used its cash reserves to buy $1.5 billion worth of bitcoin in January, which has since nearly doubled in value.
Mr Musk has frequently shared dogecoin-related memes on Twitter during its latest months-long price rally, which typically prompt its price to surge even further.
This phenomenon reportedly led to concern from US regulators, with the Securities and Exchange Commission (SEC) currently rumoured to be investigating Mr Musk.
“I hope they do!” he tweeted in February. “It would be awesome.”
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