Dogecoin vaulted more than 30 percent on Wednesday after Coinbase said the meme-based cryptocurrency would be available to users on its trading platform.
Dogecoin, a meme-based cryptocurrency popular with retail investors, rose on Wednesday, taking advantage of the news that digital asset exchange Coinbase will make the cryptocurrency available to its users on its trading platform.
Coinbase said on Tuesday that it would immediately accept incoming transfers from Dogecoin via Coinbase Pro, a trading platform for professional traders.
Dogecoin rose 31 percent to $ 0.41 on Wednesday in the wake of Coinbase news. This pushed the market capitalization of the cryptocurrency to $ 54 billion, which according to data and market research CoinGecko.com is the sixth largest sign.
Edward Moya, senior market analyst at OANDA in New York, said Dogecoin was nowhere near the level that led to Tesla CEO Elon Musk’s appearance last month on Saturday Night Live, a television program of the American comedy sketch.
But this “Dogecoin refusal comes during a period in which the cryptocurrencies are seeing a consolidation of positions, so we should not be surprised if this recent boom fizzles or if it makes a new attempt to do the moon,” he said. added.
Dogecoin lost more than a third of its price after Musk, a major proponent of the currency, called it a “noise” during his host-host on Saturday night.
The token increase occurred during an increase in online trading of stocks and crypto by retail investors, who were at home with extra cash due to the COVID-19 pandemic. The currency did not see much growth in use for payments or in trade.
A surge in the use of online trading programs such as Robinhood has also fueled the rally in GameStop Corp shares on social media, driving retail investors against hedge funds.