Dogecoin (DOGE) started to rise in price after the announcement of the listing made by the cryptocurrency exchange Coinbase Pro. The value of Dogecoin cryptocurrency has grown by more than 34% per day, according to the data of the online exchange CoinMarketCap. Thus, Dogecoin got rid of over $ 16 million worth of bearish leverage.
It is possible that the growth of Dogecoin could be influenced by a new tweet from the founder of Tesla and SpaceX, Elon Musk. The billionaire left an image of Doge with a popular meme in 2013, accompanied by the caption: “Found my baby photo”.
Note that Dogecoin founder Billy Markus expected even greater growth. In his opinion, the reason why the rise in prices wasn’t as strong as expected was the stagnation of Bitcoin.
What does listing mean for a cryptocurrency meme?
There is certainly momentum behind this step. People will still be wary in the long run. But this debut will eventually have some opportunity to attract traditional investors, not just the Robinhood / Reddit army.
After Elon Musk appeared on SNL, the growth of the meme’s cryptocurrency slowed down and subsided, people switched to Ethereum, Safemoon and other altcoins. Now, what once viewed as an “embarrassing trend” for technical traders may now break over this. Cryptocurrency exchange Kraken reported that they processed over $ 6.5 billion in DOGE in April. And over $ 9 billion in May. Despite the fact that the cryptocurrency meme has received the support of Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban, in order for the cryptocurrency to really take off, according to experts, it needs some kind of use case. There has to be some kind of innovative push, and perhaps the Coinbase Pro listing will be that push.
Voyager, the US crypto trading app that supports Dogecoin retail, saw “significant appreciation and trading activity” today for the cryptocurrency on its platform.
Voyager has also been pointed to a common bullish line around Dogecoin as it is gaining popularity across all demographics.
Coinbase wrote on their listing blog that “unlike Bitcoin, which designed for scarcity, Dogecoin is deliberately abundant. 10,000 new coins are mined every minute and there is no maximum supply”.
According to Mark Cuban, the meme cryptocurrency better suited to the role of currency. Because it is easier to make transactions with it.
The billionaire also noted the benefits of unlimited supply of Dogecoin. He is confident that issuing 5.2 billion coins annually is good.
Fears of investing in Dogecoin
James Butterfill, investment strategist at CoinShares, said that when talking to their clients, who are institutional investors, they are wary of investing in dogecoin due to a lack of fundamental principles.
“When you invest in any digital asset, you have to look at the underlying fundamentals. With dogecoin missing them”, he said.
Katie Stockton, founder and managing partner of Fairlead Strategies, said what we’re seeing right now is just a short-term oversold jump.