Cryptocurrency Update: To the moon for dogecoin, more high profile BTC support and ether primed for rally?

The power of memes reasserts itself as Dogecoin soars this week, while Bitcoin enjoys further high-profile backing, and ether could be about to reach new heights after enjoying record highs.

Cryptocurrency trading

The little Doge who could

We all know memes are currency on the internet, but its when memes and crypto intersect that we can really see their value.

The price of memecoin Dogecoin, a crypto that started as a joke, soared 55% on Sunday, recording new all-time highs as celebrities got in on the act. Previously, Elon Musk has tweeted about the token, sending Dogecoin on a 44% rally last week, and now Kiss frontman Gene Simmons and Snoop Dogg are stoking the memery by tweeting in support of the crypto. Snoop Dogg, for example, has become Snoop Doge.

So … it’s finally come to this … pic.twitter.com/Gf0Rg2QOaF

— Elon Musk (@elonmusk) February 7, 2021

Year-to-date, Dogecoin is up 1,380%. It now has a market cap of $10.8bn, meaning it has overtaken tokens like Litecoin and Bitcoin Cash to be the world’s seventh most valuable crypto in terms of market capitalisation.

Is Dogecoin even legitimate? There are real numbers being traded for real money, but the whole thing does feel like a joke that’s getting a bit out of hand. Dogecoin has also been a target for the Reddit crowd, which is partly responsible for its massive recent rally, coupled with celebs hopping aboard the memewagon.

It’s one to watch, but the fact it all started as a joke may suggest the whole Dogecoin rally is smothered in irony and is not a legit play for investors. On the other hand, the fact so many big names, especially the world’s richest man, may have turned the irony into legitimacy. It’s certainly an interesting situation. Just how far will Dogecoin go?

Twitter boss opens Bitcoin node

Lending further institutional support for BTC, Twitter boss and online payment platform Square CEO Jack Dorsey has opened a Bitcoin node.

Nodes are software that help validate transactions and blocks on the Bitcoin blockchain. On Friday, Dorsey tweeted the below, showing his new node in action:

Running #bitcoin pic.twitter.com/W51ga3yrKb

— jack (@jack) February 5, 2021

This basically means Dorsey will now have a hand in processing Bitcoin transactions and recording transaction data in the blockchain blocks. Nodes are essential in keeping Bitcoins going.

Dorsey has long been a supporter of digital currencies and BTC in particular. For instance, his Square payment software accepts payments in Bitcoin, and even has Square Crypto – a team dedicated entirely to Bitcoin development.

Twitter even launched a branded hashtag for Bitcoin last year. If you put #bitcoin into a tweet, then the cryptos now iconic logo will be produced.

Bitcoin prices have started what looks like another rally. At the time of writing BTC futures were trading above $39,000. Are new record highs on the way? It’s possible if more big players like Jack Dorsey give further backing the world’s most popular crypto.

Ether hits new all-time highs – poised for further growth?

Ether reached above $1,790 last week, new record highs, ahead of ether’s launch on the Chicago Mercantile Exchange.

Ether futures will be available to trade on the CME once trading opens later today. Ether is now trading at around the $1,600 level, but the fact it is now available on the CME may cause prices to shoot up to around $2,000.

Investors are also eagerly awaiting the release of Ethereum 2.0, the parent blockchain network for the ether token. Ethereum 2.0 may be more secure and fast, thus able to handle more transactions, and see further use of ether tokens.

Ether is the second-largest currency in the world by market cap, behind only Bitcoin.