Dogecoin has been surging for the better part of the day. At the time of going to press, it was up by 30.65% to trade at $0.42.
Dogecoin’s rally followed an announcement by Coinbase that it would start accepting Dogecoin for incoming crypto transfers. The listing of Dogecoin will take effect on Thursday, June 3rd, 2021.
Coinbase stated that overwhelming customer requests drove the move to list Dogecoin. The company took note of one of Dogecoin’s core features, and that is its inflationary nature. It stated that, unlike Bitcoin that is scarce by design, Dogecoin is designed to be abundant and that 10k new coins hit the market every minute.
However, it is not just the news of the Coinbase listing that sent Dogecoin surging. The crypto was given impetus by Elon Musk’s retweet of the news. Musk has been one of the most steadfast promoters of Dogecoin and is arguably the primary factor behind its incredible rise.
While retweeting the news, the Tesla (TSLA) CEO added the caption, “It’s inevitable,” with a picture of Dogecoin towering over the legacy financial system.
Musk is often active on social media on matters to social media. Over the weekend, Blockfolio, a crypto app, teased Musk to make a hot tub and use Doge for heating. His response was, “great idea,” which saw Dogecoin turn green in a relatively low-activity market.
Elon Musk’s effect on Dogecoin has not gone unnoticed even by crypto experts. According to Michael Stark, a market analyst at Exness, Elon Musk’s tweet of Coinbase’s listing has a much bigger effect on its current price action than the listing itself. Stark noted that Elon’s massive following within the crypto community is a huge factor to Doge’s price action.
Besides Musk, the Coinbase listing announcement has coincided with another equally significant listing. Localbitcoins, one of the world’s most significant crypto peer-to-peer crypto platforms, has announced that it is listing Dogecoin.
In a press release on its blog, Localbitcoins announced that it had decided to accept payments in several altcoins due to high customer demand. Among those it has added include Dogecoin (Doge), Chainlink (LINK), Cardano (ADA), and Polkadot (DOT). It had also integrated two of the world’s most important stable coins, USDT and USDC.
The move is a big deal for Dogecoin in terms of trading volumes. That’s because Localbitcoins is the number one platform for crypto transactions in the developing world. It offers access to the crypto market in countries where payment systems widely used in the developed world are not readily available.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Bitcoin Still In A Range
While Dogecoin surges, Bitcoin is stuck in a range. In the day so far, Bitcoin has gained by 3.04% to trade at $37,335.09. Ethereum, the second-largest cryptocurrency, is also recording minor gains. It is up by 4.65% to trade at $2706.42.
According to crypto analyst Michael Stark, there doesn’t seem to be much indication of investor appetite for the top two cryptos. At the same time, there is no indication of HODLERs in a rush to sell.
Crypto Acceptance Growing
Overall, the acceptance of cryptocurrencies as an investment is on the rise. In a survey by the Financial Planning Association, 14% of financial markets advisors are recommending them to their clients.
While touching on the same report, MarketWatch reported that the idea of cryptos being an inflation hedge was drawing in new investors. The report notes explicitly that Bitcoin’s low supply is attracting investors chasing gains and value protection.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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