● DogeCoin Rallies Over 800%
● Mark Cuban Pushes for DeFi
● Crypto Platforms Struggle to Meet Demand
Hello and welcome again to this week's Overbit insights. For anyone paying attention, and for even those who aren't, it's pretty clear this past week has been one of the crazier ones in recent memory. That being said, we'll do our best going forward to give you a brief rundown on what happened.
Our first story of the day looks at one of the oldest cryptocurrencies that took an unlikely step into the limelight - DogeCoin.
On Thursday, 28 January, Dogecoin skyrocketed almost 800% in a day after the Reddit community WallStreetBets focused their attention towards it on Robinhood, since their favoured stocks were unable to be traded there.
Dogecoin was started back in 2013 as a so-called "meme" currency, demonstrating the fun nature of cryptocurrencies. Though the currency has fallen out of favour with its original creator, Dogecoin remains a cult-classic with a strong community, one that always manages to pump this cryptocurrency vertically every few years.
This runup brought Dogecoin to a market cap valuation of $8.2 billion, making it the 9th most valuable cryptocurrency in addition to being flouted as "the crypto Gamestop". This runup has retraced nearly 50% since then, demonstrating the volatility that can happen with cryptocurrency's massive ups and downs. Regardless, this massive Dogecoin pump was indeed driven by tremendous retail interest, spurred on by Wall Street's ongoing craziness. Going forward, growing retail interest will surely be something to keep an eye on.
Next up is another story of growing cryptocurrency interest, this time from the infamous investor Mark Cuban.
Mark Cuban the famous billionaire and owner of the Dallas Mavericks Basketball Team, recently showed his interest in DeFi (Decentralized Finance) projects.
In a recent Tweet thread, Cuban talked about the need for decentralized finance and blockchain-based apps that remove intermediaries in traditional markets. For example, when users buy a stock on Robinhood, the broker (Robinhood) holds the shares on behalf of the customer. This is in direct opposition to how DeFi and blockchain protocols work when the users always hold their funds, and the ability to "reverse" a trade, as suggested by recent regulators in the GameStop Fiasco, doesn't exist—making Blockchain permanent and anti-fragile.
Closing out today's edition of Overbit Insights, we look at some of the effects this massive retail interest wave has had on some of the trading platforms.
Similar to the massive runup at the end of 2017, this ongoing surge in cryptocurrency interest seems to have hit the industry's infrastructure across the board.
Something important to note is that many of these exchanges have touted their improved infrastructure since 2017. If this is to be true, these outages would indicate that this current wave is much larger than ones in the recent past. Though this is speculation at this point, as we said, the growing surge in retail interest will surely be something to watch as the cryptocurrency market cap continues to grow.
Thanks as always for reading this edition of Overbit Insights. Don't forget the best place to trade is always Overbit.com.