On Wednesday, Dogecoin market capitalization sat at nearly $40 billion. As a result, the cryptocurrency climbed 13% to 30 cents per coin over the past day. "Dogecoin has no apparent commercial or investment use other than as a conduit for speculative mania and the attempt to make a buck. I suspect much of its appeal lies in the fact that it is very, very cheap to buy and sell, as opposed to $60,000 for Bitcoin, making it much more approachable to a retail trader who fancies a flutter," OANDA's Senior Market Analyst for Asia Pacific Jeffrey Halley said.

According to Curtis Ting, a managing director of Europe at Kraken, investors purchase DOGE to make a self-deprecating joke about their own inability to invest.

Dogecoin, as well as bitcoin, is a digital token that costs as much as users are ready to pay or exchange for it. It is not backed by other assets or businesses. It will never bring profits. Apart from that, it lacks BTC's main hallmark valued by the crypto community, which is a supply limit. There's no hard cap on the number of coins that can be minted using the computer code governing Dogecoin. The meme-based coin also has some history. It is relatively old for a cryptocurrency. Tokens with a long track record can benefit from heightened awareness and a gradually expanding set of holders willing to talk it up. Moreover, interest in cryptocurrency and trading has spiked this year. Dogecoin was waiting to be found by retail investors.

Dogecoin also caught the attention of billionaires such as Tesla's Elon Musk and Dallas Mavericks owner Mark Cuban. In fact, Dallas Maverick accepts Dogecoins as payment for tickets and merchandise. Elon Musk posted a Lion King-themed meme and an image of a fictitious magazine Dogue. Reddit and Twitter users helped promote the meme with images like "Papa Elon Will Protect the DogeCoin," or the Shiba Inu getting more muscular. The rally of Dogecoin looks like a pump because of some Internet users' attempts to increase the price by focusing attention on a cheap asset and egging each other on to buy. The trick with a pump is to get out before the meme dies and leave behind the newcomers who took things too seriously or sold too slowly.

It seems that Dogecoin is owned by a relatively small circle of anonymous owners. That is why it may take less time to get the price moving. On top of that, Dogecoin is part of a wider phenomenon where money is pulled into increasingly speculative investments. Some buyers of the cryptocurrency believe that it has a very low barrier of entry. Some popular brokerage applications with zero commission offer users to buy Dogecoin by just clicking a button. Anyway, this is a highly volatile cryptocurrency, which involves certain risks. That is why there is no point in buying large amounts of the token.