Dogecoin jumps on news of launch on Coinbase Pro
Reuters
Published Jun 02, 2021 12:07PM ET
Updated Jun 02, 2021 05:06PM ET
By Gertrude Chavez-Dreyfuss
NEW YORK (Reuters) - Dogecoin, a meme-based cryptocurrency popular among retail investors, surged on Wednesday, benefiting from news that digital asset exchange Coinbase will make the crypto unit available to its users on its trading platform.
Coinbase said on Tuesday it will immediately accept inbound transfers of dogecoin Coinbase Pro, a trading venue for professional traders.
Dogecoin rose 31% on Wednesday to $0.41 in the wake of the Coinbase news. That pushed the cryptocurrency's market capitalization to $54 billion, making it the sixth-largest token, according to data and market tracker CoinGecko.com.
Edward Moya, senior market analyst at OANDA in New York, said dogecoin was nowhere near the level seen leading up to Tesla (NASDAQ:TSLA) chief Elon Musk's appearance last month on Saturday Night Live, a U.S. comedy sketch TV show.
But this "dogecoin bounce comes during a period where the cryptoverse is seeing a consolidation of positions, so we should not be surprised if this recent surge fizzles or if it makes another attempt at the moon," he added.
Dogecoin lost more than a third of its price after Musk, a big supporter of the currency, called it a "hustle" during his guest-host spot on the Saturday Night Live.
The token's rise came during a surge in online trading of stocks and crypto by retail investors, stuck at home with extra cash because of the COVID-19 pandemic. The coin has not seen much growth in usage for payments or in commerce.
A boom in usage of online trading apps like Robinhood also fueled the social-media driven rally in GameStop Corp (NYSE:GME) stock this year, which pitted retail investors against hedge funds.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.