Why Is Dogecoin Going Up? eToro Listing Is Followed by Crypto Hitting New High

Dogecoin has risen to just over $0.47 over the past 24 hours, on the back of news the cryptocurrency has been added to the eToro trading platform.

The platform announced the news on Monday, stating the popular token had been added due to user demand. An eToro press release read: "You barked and we heard you!"

Dogecoin is currently up almost 24 percent over the past 24 hours to $0.47, down a little from its record high earlier. The token is up around 60 percent over the past week.

By comparison, Bitcoin, the most popular and valuable cryptocurrency, is currently worth $56,120, down just over four percent over the past 24 hours.

Meanwhile, Dogecoin is also being buoyed by anticipation ahead of Elon Musk's appearance on U.S. comedy sketch show Saturday Night Live on May 8, according to Benzinga.

The Tesla and SpaceX CEO is known for his support of Dogecoin on Twitter, which often coincides with the token's price jumping.

Musk has suggested that a reference to Dogecoin will feature in his SNL skit. It is not clear how, but on April 28 Musk tweeted simply: "The Dogefather, SNL May 8."

Dogecoin has hit headlines in recent weeks due to its increase in price. At the start of April it was worth just $0.05.

Today, Dogecoin's market capitalization—the total value of all Dogecoins in circulation—is $56.3 billion.

By this metric it is now the fifth most valuable cryptocurrency in the world, according to price tracking site CoinMarketCap. XRP, Binance Coin, Ethereum and Bitcoin are higher.

Cryptocurrencies are known for their sharp price rises as well as for their sudden falls. Andreas Park, an associate professor of finance at the University of Toronto, previously told Newsweek the volatility of many crypto tokens is "staggering" and is driven by factors such as a lack of fundamental value.

On April 19 the price of Dogecoin temporarily rose to $0.42, but by April 23 it had fallen down to just $0.19.

Marcus Swanepoel, chief executive of the Luno cryptocurrency exchange, told the Financial Times: "Never spend more money than you can lose. It's very risky, there is no doubt about it."

Dogecoin was created as a joke by software developers Billy Markus and Jackson Palmer in 2013.

Cryptocurrency as a whole has seen an increase in industry support this year, with the likes of Visa and PayPal integrating it further into their platforms as a payment method.

A visual representation of a Dogecoin token, taken in Katwijk, Netherlands, January 2021. Dogecoin rose sharply in price through April, though cryptocurrencies are known for their volatile prices. Yuriko Nakao/Getty