According to Coin Metrics, Dogecoin is pricing at around 42 cents on Wednesday morning, up 25% for the day. According to Coinbase, the move earned it a $54 billion market cap, making it the sixth-largest cryptocurrency by market value.
The cryptocurrency was developed in jest in the same year that bitcoin’s passionate but small group began to coalesce around its pseudonymous founder, Satoshi Nakamoto, and is based on the 2013 Internet meme doge.
However, it has gained considerable traction this year as a result of Tesla CEO Elon Musk’s sponsorship and constant promotion on social media, where he has become something of a cryptocurrency market mover with his tweets on dogecoin and bitcoin. According to Coin Metrics, Musk’s Tweets propelled the dogecoin’s run to an all-time high of 67 cents in early May. His performance on Saturday Night Live, in which he referred to dogecoin as a “hoax,” may easily send the market falling back down.
Trading on Coinbase Pro will start at 12 p.m. ET on Thursday.
For aggressive traders, Coinbase Pro is the exchange’s professional-level trading platform. Dogecoin is not presently supported by Coinbase’s retail trading platform. Historically, the speculative joke currency has shown little promise as a functional blockchain project and has received few technological improvements, making it extremely dangerous for inexperienced retail investors. – who have been the main driver of price increases in many cryptocurrencies, including dogecoin.
Coinbase is the largest cryptocurrency exchange in the United States, with 56 million verified users and $223 billion in assets. When it offers a new asset, its price has a tendency to rise on the first trading day (like an IPO pop). The Coinbase Effect is a well-known phenomena in the cryptocurrency world. Asset prices have reacted similarly to pre-listing news.
Because Coinbase is now a public corporation, the listing process is expected to be extensive and rigorous. Its choice to offer dogecoin might be viewed as a litmus test for other individual assets, especially if more people get interested in bitcoin and new measures emerge, such as tweets from high-profile corporate individuals.
“What we’re seeing with social media is the ability of a small piece of the overall mosaic move markets,” When questioned about Musk’s remarks, former SEC chairman Jay Clayton told on Wednesday.
“As just a person who looks at markets that does concern me,” he said. “What makes up a good investment is never just that one piece of the mosaic. Taking one of those pieces and amplifying it without updating the rest of the picture –that’s not something that should be encouraged.”