Dogecoin rallies 31% as it gets listed on Coinbase

Infamous cryptocurrency Dogecoin jumped 31% in price to $0.41 on Wednesday following Coinbase’s announcement of enlisting the currency on its exchange. The news sparked a lot of renewed interest in Dogecoin as its total market cap rose to $54 billion, making Dogecoin the sixth-largest cryptocurrency in the world as per crypto-tracker CoinGecko.

Since its debut on Coinbase, Dogecoin has outperformed all other cryptos, advancing 24% over a period of seven days, while Bitcoin and Ethereum rose by 6.2% and 14.9%, respectively, over the same duration. Throughout 2020, Dogecoin rallied a whopping 14000%, going from a virtually insignificant meme currency to the talk of crypto-town.

As an introductory offer, Coinbase is organizing a giveaway, offering investors a chance to purchase $100 or more worth of Dogecoin within June 10, 2021, in order to enter a prize pool worth $1.2 million. Coinbase has also put up informational asset pages as well as a refreshed FAQ section in the wake of Dogecoin’s enlistment. The coin can now be purchased on coinbase.com as well as its iOS and Android apps.

Old Doge, New Adopters

Dogecoin was created in 2013 by Jackson Palmer as a joke. Palmer was an employee at Adobe at the time when he teamed up with Billy Markus, a developer at IBM, to create Dogecoin. He then put up a satirical tweet urging people to invest in Doge, although neither of them thought that they would be taken seriously.

However, the internet loved this quirky spin-off cryptocurrency, and in the first crypto bubble in 2014, the value of Dogecoin skyrocketed to make it the fifth-largest cryptocurrency for a short while. While it eventually fell off, the hype around Dogecoin was brought back by Elon Musk. One of Musk’s first tweets about Dogecoin in January sent its value soaring 822% to $0.082 per coin. Since then, the coin has steadily increased in popularity among crypto-enthusiasts. Throughout the first few months of 2021, Musk has made a series of tweets about Dogecoin, going so far as hinting that he may have vested interests in its development.

While Doge has been making headlines again, the overall cryptocurrency market is in a slump. The mid-May crash that resulted from China’s crackdown on cryptocurrencies is still holding the market back from returning to its earlier form. Bitcoin, which topped $65000 dollars at its peak, has since declined over 40% and is currently trading just shy of $40000. Meanwhile, other cryptos such as Ethereum, Cardano, and the like are not doing so much better either, being off by 20% or more from their peak prices.

The erratic price action of cryptocurrencies has left a lot of retail investors reconsidering their investments. The total value of the crypto market stood at over $2 trillion at its highest. Following China’s announcements and Tesla’s pullback from accepting Bitcoin payments, the market slumped by over $800 billion dollars. Currently, while prices have recovered somewhat, the overall market is far from its glory days.

References

1. Dogecoin outperforms Bitcoin, Ether after Coinbase debut https://www.cnbctv18.com/cryptocurrency/dogecoin-outperforms-bitcoin-ether-after-coinbase-debut-9555871.htm
2. Dogecoin bolstered by Coinbase addition as Elon Musk tweets continue https://economictimes.indiatimes.com/markets/cryptocurrency/dogecoin-bolstered-by-coinbase-addition-as-elon-musk-tweets-continue/articleshow/83257448.cms

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