The cryptocurrency has been on the rise recently following a period of sustained decreases.
Dogecoin has risen by 1.84 percent in the last 24 hours and spiked in recent weeks, sparking fears of a cryptocurrency bubble.
The cryptocurrency hit record highs in recent days after online communities drove up the price of the digital coin.
Michael Kamerman, CEO of broker Skilling, said the “parody currency” often appeals to investors due to its status and popularity on social media and with celebrities.
He told Express.co.uk: “The resurgence in attention to Dogecoin, which was originally launched as a parody currency, may seem attractive to investors due to its volatility but for the currency to ever have intrinsic value, scalability and security issues need to be addressed.
“It’s moved by headlines, tweets, celebrity, or corporate endorsements and while that’s likely belittled by “traditional” investors, it’s what brings the masses to cryptocurrencies.
“The masses understand headlines, tweets, and endorsements and the masses will likely mature as crypto enthusiasts and begin to appreciate the movement for its more technical nuances.
“However, the main driver behind Dogecoin’s popularity is its online communities, coupled with support from high-profile business magnates like Elon Musk.”