On Tuesday Thursday, Coinbase announced that traders would be able to trade Dogecoin on Thursday, depending on the “liquidity” conditions on the Pro platform.
Dogecoin was up more than 30% after the announcement, seeing $ 0.43. As of the time of publication, DOGE is trading at $ 0.41.
So, what does this listing mean for meme cryptocurrency? Analysts, fund managers and rival exchanges spoke to CoinDesk about the Dogecoin listing.
Edward Moya Of OANDA
“People will still be cautious in the long run, but this debut will eventually have the ability to attract not only the Robinhood/Reddit Army, but traditional investors as well,” said Edward Moya, Senior Market Analyst at OANDA.
“There is definitely momentum behind this movement,” Moya said.
According to Moya, after Elon Musk's appearance on SNL, the momentum of the meme cryptocurrency slowed and became muted, people switched to Ethereum, Safemoon and other altcoins.
What was once seen as an “embarrassing trend” for tech traders may now be more than that, Moya said.
April May saw more than $ 6.5 billion in DOGE transactions and May over $ 9 billion, cryptocurrency exchange Kraken said.
According to Moya, although the meme cryptocurrency has received support from Tesla CEO Elon Musk and billionaire entrepreneur Mark Cuban, the cryptocurrency needs some kind of use-space argument to be truly successful.
” There has to be some kind of innovation, " he said.
Steve Ehrlich From Voyager
Voyager, a US cryptocurrency trading app that supports individual trading for Dogecoin, said it has seen “significant appreciation and trading activity” in Dogecoin on its platforms.
“While Dogecoin has been gaining popularity across all demographics, we have had consistent net buyers showing the overall rise around it,” Voyager Chief Executive Steve Ehrlich said.
“Unlike Bitcoin, which is designed to be scarce, Dogecoin is deliberately plentiful – 10,000 new coins are issued every minute and there is no maximum supply,” Coinbase wrote in a blog post.
James Butterfill Of CoinShares
James Butterfill, investment strategist at CoinShares, said that speaking to his clients, who are institutional investors, they were reluctant to invest in Dogecoin because of its lack of fundamentals.
“When you invest in any digital asset, you have to look at the fundamentals behind it, there's a lack of that in Dogecoin,” he said.
Katie Stockton From Fairlead Strategies
In technical terms, Katie Stockton, founder and Managing Partner of Fairlead Strategies, said she saw the move as creating a “perception of validity.”
“What we're seeing now is a short-term oversold jump,” he said.
Dogecoin is gaining short-term momentum, but its upward movement will remain Limited, Stockton said.