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Dogecoin soars another 600% as Reddit frenzy pushes the token into the top 10 cryptocurrencies by market cap

Shalini Nagarajan   

Dogecoin soars another 600% as Reddit frenzy pushes the token into the top 10 cryptocurrencies by market cap
  • Dogecoin's rise extended Friday as the crypto-themed subreddit SatoshiStreetBets fueled a further rally.
  • Bitcoin too climbed 15% on the same day after Elon Musk changed his Twitter bio to include it.
  • Robinhood temporarily restricted crypto trading on its platform due to "extraordinary market conditions."

The Reddit-inspired market mania sent the price of meme-based digital asset Dogecoin soaring on Friday, which catapulted the token into the top 10 cryptocurrencies by market capitalization.

Dogecoin jumped over 600% in the last 24 hours to a trading point of $0.0779 in early European trading. That pushed its market value to about $9 billion, ranking it at seven among cryptocurrencies, according to data from Coin Gecko.

Crypto rival Bitcoin also climbed 15% on the same day after Elon Musk changed his Twitter bio to simply say: "#bitcoin." Prior to that, Musk touted Dogecoin by posting a mock magazine cover of "Dogue" - a play on the fashion title Vogue. The billionaire has previously referred to it as his favorite cryptocurrency.

Read More: MORGAN STANLEY: Buy these 17 stocks with strong earnings that are expected to outperform into 2022 even if the broader market sinks

A crypto-themed version of the Wall Street Bets forum has been attempting to push the digital token higher to make money. By creating a hype around the coin, the SatoshiStreetBets subreddit is aiming for a $1 price target for Dogecoin.

The recent frenzy led online brokerage Robinhood to restrict crypto trading temporarily. "Due to extraordinary market conditions, we've temporarily turned off instant buying power for crypto," a Robinhood spokesperson told CNBC. "Customers can still use settled funds to buy crypto. We'll keep monitoring market conditions and communicating with our customers."

Read More: As Redditors flood the stock market, UBS breaks down 6 options strategies investors can use right now to protect their portfolios

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