Dogecoin, the alternative cryptocurrency inspired by a popular meme, has surged over
the weekend and now has a market capitalization over $2 billion. It soared above the $1 billion milestone for the first time on
Christmas Day and climbed over $2 billion on Sunday.

As for its
price, the coin was trading at $0.018 at the time of writing. That’s up 800% from $0.002 a coin at the beginning of December.

Founder Jackson Palmer, who created the digital currency as a
joke, said new found interest in Dogecoin is a concerning
indicator of wide-spread frothiness in the cryptocurrency market. “I have a lot of faith in the Dogecoin Core development team to
keep the software stable and secure, but I think it says a lot
about the state of the cryptocurrency space in general that a
currency with a dog on it which hasn’t released a software update
in over 2 years has a $1B+ market cap,” Palmer told
cryptocurrency watcher CoinDesk.

Wall Street has been raising red-flags about a bubble in the
market. In fact, UBS chief economist Paul Donovan said
cryptocurrencies are in “the bubble to end all bubbles.”

“A twenty-fold increase in bitcoin prices in just two years, and
an absence of any fundamental economic backing, cryptocurrency
prices are almost certainly a bubble,” Donovan wrote in an
October memo. As for Dogecoin, Palmer, a
group product manager at Adobe, and Billy Markus, a software
engineer at IBM, created it “without
much real thought,” according to reporting by
Motherboard.  As Palmer told Motherboard’s 
Patrick
McGuire, “one night after work, I sat down with a beer, I had too
much time on my hands, and I bought Dogecoin.com.” Read more from businessinsider.com…

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