The price of Dogecoin has surged seemingly without any push from prominent figures on social media or major developments in the project.
According to data from coinmarketcap, the price of Dogecoin (DOGE) is more than $0.24 at the time of publication, with a market capitalization of roughly $32.1 billion. The token’s most recent rally had its price surge more than 81% over the last 24 hours, passing both Uniswap (UNI) and Litecoin (LTC) and become the 8th largest cryptocurrency by market cap.
More retail outlets have adopted the currency as a form of payment in recent days. On Tuesday, a popular Miami nightclub announced it would be accepting DOGE upon reopening as payment for tables, drinks, and merchandise.
Dallas Mavericks owner and DOGE proponent Mark Cuban also reported the basketball team’s store had sold more than 122,000 DOGE worth of merchandise — more than $16,000 at the time of publication — since first accepting the token in March. Cuban said the team “will never sell 1 single Doge ever.”
Though Tesla CEO and DOGE enthusiast Elon Musk has tweeted one of his memes amid the token’s price surge, the recent rally may simply reflect the climate around the crypto market. Mainstream media attention was largely focused on Coinbase’s COIN stock being listed on the Nasdaq this week as both the price of Bitcoin (BTC) and Ether (ETH) reached new all-time highs.
Tesla Suspension Won’t Derail Bitcoin, It’s Still a Buy- Says Bloomberg’s McGlone
Elon Musk’s concern that bitcoin might be bad for the environment isn’t enough to derail the cryptocurrency’s potential for further price gains, said Bloomberg Intelligence commodity strategist Mike McGlone.
McGlone in a new report on Thursday wrote “Elon Musk saying Tesla is suspending purchases using bitcoin doesn’t shake our thesis that the crypto is in early price discovery days on its way to becoming the global digital reserve asset in a world of accelerating digitalization and electrification.”
The report follows a 13 percent drop in the price of bitcoin, the most in a single day in almost four months. The drop was prompted by Musk, Tesla’s CEO, saying late Wednesday the electric-car company was ending its bitcoin-for-cars offer made earlier in the year. That Feb. 8 announcement drove up bitcoin’s price so dramatically – by 19 percent – that it was lionized by some fans of the cryptocurrency as “Elon’s candle,” in a reference to the resulting pattern on price charts.
Now, bitcoin analysts are scrambling to adjust their price forecasts and respond to concerns about bitcoin’s energy needs contribute to fossil-fuel burning, making it a climate threat at a time when environmental, social and governance concerns are becoming more important to institutional investors.
McGlone is considered a hot hand in cryptocurrency markets because he accurately forecasts bitcoin’s price rise to $50,000 last year, at a time when it was trading at just a fraction of that level.
What matters the most, according to McGlone, is the source of the Bitcoin network’s energy.
“The source of electricity is increasing from solar and wind, which are cost effective,” according to the report. “On a global scale, electricity is going renewable.”
Musk’s remarks about the crypto’s electricity consumption are “odd” coming from an automaker whose product is “fed solely by electricity,” the analyst wrote.
McGlone wrote that bitcoin “shows comfort at the whole-number level around $50,000, which was our initial call on a 2021 target resistance value.”
“The rule of money flowing to where it’s treated best looks like an enduring tailwind for bitcoin,” he wrote.
Coinbase Take Steps To Add DOGE
Coinbase, known for being particularly choosy in the cryptocurrencies it allows to list, has decided to be a lot more inclusive, potentially bringing in a flood of new revenue as a result.
As part of the new policy, the leading U.S. exchange will be listing meme-based cryptocurrency dogecoin in the next six to eight weeks.
Coinbase sat on the sidelines this year as competing exchanges raked in untold millions of fees as trading in dogecoin, a cryptocurrency that was started as a joke, exploded in popularity.
Speaking on the company’s Q1 earnings call, CEO Brian Armstrong said Coinbase is also changing its process for listing coins to include digital assets that have just been minted. In the future, the company will start listing what are called “debut” coins or cryptocurrencies that have just been minted and are seeing their first day of trading volume.
Currently, the company evaluates cryptocurrencies based on the security of the digital asset and whether or not it could potentially be deemed a security. This is the first time the exchange’s executives have said they would list coins with no volume.
“We’re going to have to do this in the future–be the first to list a number of these coins,” CEO Brian Armstrong said.
Currently, there is a backlog of assets that the exchange needs to get to, and it’s working on accelerating its coin listing process, Armstrong added.
Dogecoin Jumps 24 Percent as Elon Musk Hints at Improving Network’s Transaction Efficiency
Dogecoin is once again making a bull run after Tesla’s Elon Musk tweeted “potentially promising” news for the network.
On Thursday evening, a tweet from Elon Musk (Dogefather) official Twitter handle affirmed that Tesla and its CEO are “Working with Doge devs to improve system transaction efficiency. Potentially promising”.
Prices across major exchanges including Binance, Bitfinex, FTX, Gemini and Poloniex are posting around 26 percent gains over a 24-hour period The cryptocurrency is currently changing hands for around $0.53. The increase came even as other major cryptocurrencies’ prices sank.
Meanwhile, U.S. cryptocurrency exchange Coinbase announced it would be adding Doge to its suite of crypto offerings, possibly due to client demand as has been the case with other major exchanges.
The world’s second richest man has played a large role in Doge’s astronomical 9,400 percent rise in value since it was just a pup trading at around $0.005 on Jan. 1.
Musk’s handiwork has previously affected Doge’s price. Last month, Tesla’s CEO hinted the Shibu Inu-inspired crypto would feature on Saturday Night Live with Musk calling himself the “Dogefather.” Prices immediately spiked on the tip, jumping 24 percent from $0.25 to $0.31
Doge’s price continued to soar leading up to Musk’s appearance on the show, touching an all-time high of around $0.74 but immediately cooled after traders’ hopes were dashed by Musk’s meager mention of the crypto that night.
The problem, some argue, is that Doge is unlikely to survive without Musk’s help, though developers appear to be making headway in a project that once had zero involvement from crypto technicians.
Doge started as a joke in 2013 by creators Jack Palmer and Billy Markus to draw newcomers to the cryptocurrency industry. It has since gained immense fame at least partly because of celebrity endorsements from the likes of Snoop Dogg and Kiss’s Gene Simmons.
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