Who was going to tell us that a cryptocurrency based on the puppy meme was going to reach that high?
After it rose in price because of Elon Musk’s tweets, now it is the turn of Coinbase, again guilty of having increased this time more than 30% of its value.
Dogecoin has always been popular with retail investors, but now it has been reported that digital asset exchange Coinbase will make the crypto unit available to its users on its trading platform, immediately accept incoming transfers from Dogecoin on Coinbase Pro, a place negotiation for professional traders.
The price of Dogecoin rose 31 percent on Wednesday to $0.41. That brought the cryptocurrency’s market capitalization to $54 billion, now the sixth-largest token, according to data and market tracker CoinGecko.com.
The token surge came during a surge in online trading of stocks and cryptocurrencies by retail investors, trapped at home with extra cash due to the COVID-19 pandemic. The currency has not seen great growth in the use of payments or in trade, it is only being used for investing, not for commercial actions.
It is a risk, without a doubt. Putting money in a cryptocurrency that goes up or down so much based on a single tweet is something that few would do, but when Coinbase decides to bet on the subject, you have to pay attention.