A hypothetical investment in Dogecoin worth $1,200 following the first stimulus checks sent by the US government in mid-April 2020 would be worth more than $400,000 roughly a year later.

This substantial ROI comes amid DOGE’s latest price surge to a new all-time high of about $0.7.

Stimulus Check in DOGE Worth Over $400K

CryptoPotato has previously reported hypothetical scenarios examining potential plots in which US citizens used their first stimulus checks to invest in different crypto assets.

After the COVID-19 pandemic broke out, the US government initiated radical measures and sent checks worth billions of dollars to most of its citizens. Basically, every adult making less than $75,000 per year received checks for $1,200, and the first ones arrived in the middle of April 2020.

Being forced to stay home and not work, most people used the funds to purchase necessities like food or pay rent, according to some reports. However, it’s still worth exploring what would have happened to that amount allocated in something less traditional – like a cryptocurrency.

After examining BTC, ETH, and ADA hypothetical investments, today’s digital asset under the radar is the Shiba Inu-inspired meme token – Dogecoin. TradingView’s DOGE/USD chart shows that the coin traded around $0.0019 in mid-April 2020. Meaning, $1,200 would have bought just over 630,000 DOGE tokens.

The cryptocurrency’s gains since then have been nothing short of mind-blowing. In the next just over a year, DOGE skyrocketed by 36,750% to its latest all-time high registered earlier today at around $0.7.

As a result, the whopping ROI of this investment would have been worth north of $440,000.

Dogecoin’s One Year Rise

It’s safe to say that the chances of someone indeed putting his $1,200 stimulus check in Dogecoin are quite slim. After all, the meme coin’s popularity was nowhere near its current levels.

Despite being launched in 2013, DOGE picked up years later – after multiple engagements from Tesla’s CEO – Elon Musk. Somewhere in the middle of 2020, the billionaire started endorsing the meme coin on social media, which boosted its price and popularity.

This began a snowball effect, and multiple other celebrities follow suit, including Snoop Dogg and Mark Cuban. Numerous companies took advantage of the craze and added DOGE payments for their products and services.

Thus, a year later, Dogecoin is no more the fun meme coin that started as a joke. Instead, DOGE is receiving mass adoption and, as of writing these lines, is the fourth-largest cryptocurrency by market capitalization.

Source

XRP highlighted bearish conditions in the market and a fall could take place all the way towards $1.30 before buyers step in. Cardano remained below $1.41-resistance and the volumes were not there yet to support a breakout. Lastly, Polkadot was predicted to rise north from an ascending triangle and head towards $40 or even $42.

XRP

Sponsored Links

Source: XRP/USD, TradingView

A bearish twin peak on Awesome Oscillator saw it move below the half-line as XRP tested $1.42-support. The hourly timeframe painted a slightly different picture, as the AO recorded some bullish momentum as opposed to the 4-hour timeframe. Over the coming sessions, the present support line must be observed as a breakdown could push XRP all the way towards $1.30 before buyers step in.

RSI was in bearish territory as well and a move towards the lower zone would lead to a breakdown on the charts. If the current support is maintained, a bullish comeback above $1.65 was a possibility.

Cardano [ADA]

Source: ADA/USD, TradingView

ADX Indicator on Cardano dropped to a low of 7 and indicated a weak trend in the market. A reading of below 25 generally indicates a degree of balance between the buyers and sellers. On the 4-hour timeframe, ADA traded between $1.37-$1.27 with weak volumes. Resistance at $1.41 could remain in focus over the coming sessions, and a successful breakout could see ADA shoot north on the charts.

However, OBV was yet to recover towards mid-April levels and the buying pressure was not there yet to support a favorable outcome.

Polkadot [DOT]

Source: DOT/USD, TradingView

The $38-38.5 range was an important area for Polkadot’s short-term trajectory. A strong resistance level lay at this point which also coincided with the 200-SMA (green). On the 4-hour timeframe, an ascending triangle was also spotted as the price made higher lows over the past week. April 20 saw a negative crossover between the 200-SMA and 20-SMA, which led to a bear market. If the price breaks above the upper trendline of the pattern, the 50-SMA could move back above the 200-SMA and this could boost a recovery in the market.

However, the lower trendline needed to be defended from some bearish pressure before a breakout took place. Awesome Oscillator registered a series of red bars as momentum rested with the sellers. RSI pointed south from 55 and reflected a more balanced market. In the event of a breakout, the first and second targets lay and $40 and $42, respectively.

People’s Bank of China and Alibaba Group’s affiliate Ant Group have joined forces to create a platform supporting the central bank digital currency. According to Global Times, PBoC has been working together with Ant and Tencent for the last three years on developing the e-CNY.

A Move Towards e-CNY

VOA News announced on May 3rd that the Chinese central bank and Alibaba’s associate Ant Group have signed a deal on developing a digital yuan with mutual efforts. The move will be ”jointly promoted” and the development will be based on Ant’s Group platform.

The report revealed that the PBoC has been working together with Ant and Tencent on the digital yuan as well in the past three years. Despite some tension between Alibaba’s affiliate and the multinational technology company Tencent created by the Chinese government, both organizations have remained committed to building the CBDC’s structure and distribution channels.

However, Francis Lun – CEO of Geo Securities – raised concerns regarding the coalition between one of the largest payment providers in the country – Ant Group and the political situation in China:

”The Chinese authorities are telling Ant that you should hand over your big data to the central bank. The data won’t remain in private hands until the Communist Party is the boss.”

In return, Ant demanded to lead the development and disputed that ”too much government intervention would drag the industry down.”

The Unique Nature Of The e-Yuan

Officials from China’s Central bank revealed that their CBDC will be one of a kind. According to the VOA report, the e-yuan will be a ”tool for government surveillance.”

Francis Lun said in his turn that the CBDC will enable the government to control every user’s transaction ”like a big brother.” He expressed high hopes that when it spreads abroad the digital yuan can give China a huge advantage and at some point, the country can surpass the economic dominance held by the US.

Lun concluded that PBoC looks at the partnership as win-win cooperation for the involved parties:

”By collaborating with the central bank [to launch the e-CNY], these fintech giants will be revealed from pressure in the regulator’s anti-monopoly probe.”

Even though the mass opinion about the digital yuan is that its goal is to hasten the decline of the US dollar, Anne Stevenson-Yang – research director of J Capital Research contradicted:

”I think there’s too much focus being placed on the idea that this is a totally distinct currency and they are in competition.”