Dogecoin stole the crypto spotlight following an impressive bull rally to new all-time highs. Although some trading platforms are trying to tame its volatility, DOGE could be primed for additional gains.
Dogecoin Catches up With GameStop
Retail traders led by Reddit’s r/wallstreetbets community took Wall Street by surprise after effectively cornering hedge funds out of their GameStop shorts. As GME’s market price increased by a whopping 2,500% because the start of the year, bears were required to close their positions, incurring over $5 billion in losses.
Regulators quickly stepped in to prevent additional liquidations by encouraging trading platforms to ban trades of GME completely and enforce strict constraints.
Offered the decentralized nature of the cryptocurrency market, FTX listed the viral stock for trading.
However, the liquidity shock that GME had actually suffered was significant sufficient to set off a 78% correction that squashed late-comers.