Dogecoin rises again with Coinbase announcement 

Coinbase, a platform for buying, selling, transferring, and storing cryptocurrency, has announced that it will finally make dogecoin available to its users. 

The company announced it would allow inbound transfers of dogecoin on its exclusive platform for professional traders, the Coinbase Pro. 

The announcement has catapulted the cryptocoin up to 31%, which pushed its market capitalization to $54 billion. Dogecoin’s newest rise has enabled it to secure the spot as the sixth-largest token in the world. 

But Edward Moya, a senior market analyst at OANDA in New York, warned: ”We should not be surprised if the recent surge fizzles.” 

What is dogecoin?

Dogecoin actually started as a joke. It was created in 2013 to be the perfect opposite of other cryptocurrencies, particularly bitcoin. 

When bitcoin’s creator is concealed with mystery and its supplies limited, dogecoin’s creators are out in public and have no cap in its supply. Without any limitations on its circulation, it doesn’t make any sense to make it as an inflation hedge. 

But the tables have turned on its creators as the cryptocurrency that started as a joke has soared in popularity and value. 

The dogecoin’s rise

The significant surge of dogecoin has started during the height of the COVID-19 pandemic when online trading of stocks and crypto from retail investors has increased significantly. 

The meme-based cryptocoin has recently lost a third of its price, not because of government crackdowns or even economic forces. The big slump simply came from Elon Musk’s comments on his recent Saturday Night Live appearance where he called the dogecoin a “hustle.”

But fortunately, dogecoin has gained some recovery with Coinbase’s latest announcement.

 

Image courtesy of Cointelegraph News/YouTube

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