Coinbase effect boosts Dogecoin price
Coinbase will in turn quote DOGE, which gains nearly 30%. This is the Coinbase effect on the value of crypto-assets.
Is the Dogecoin euphoria definitely over? Probably not. The token has already gone through several episodes of strong increases in 2021, followed by corrections. It is currently going through a growth phase.
Would investors turn away from its clones like SHIB and return to Dogecoin? The cryptocurrency is taking full advantage of the famous Coinbase effect. The listing of a cryptocurrency on the exchange giant allows it to appreciate.
Slow, Coinbase also adopts Dogecoin
Now, Coinbase is just making it known that it will rate DOGE. The result is there. On May 14 at 8:48 am, the token was up nearly 30% on Coinmarketcap to $0.56. The announcement of its upcoming listing came on May 13 on CNBC.
Other crypto exchanges and brokers have been quicker to catch on to the volatile cryptocurrency. Gemini, eToro and Robinhood are all taking advantage of the demand for Dogecoin. Coinbase is reacting with a backlash.
“We are slow. We need to add more assets. We’re making big investments to improve the speed of adding assets,” acknowledges the Nasdaq-listed exchange’s CFO, Alesia Haas.
However, this is not the only avenue of development envisaged by the American firm. It wants to integrate additional financial services, and thus feed its growth — to reassure its shareholders.
Coinbase wants to be the heart of the crypto-economy
“We hope to be the leading financial account in the crypto-economy, and engage our users with all types of transactions,” Coinbase thus ambitions. The exchange will take inspiration from traditional banking services, and bring them to crypto.
Credit cards, loans or deposit accounts are among the company’s tracks. But it also intends to rely on specificities of crypto such as staking and governance. “I think crypto will enable new transactions that we can’t even consider today,” stresses Alesia Haas.
The future is important to Coinbase investors and shareholders. But they are also interested in the current performance of the exchange. And they are at the rendezvous, in a crypto market, it is true, in full boom.
Yet, COIN stock is down about 30% since its listing in April. In the first quarter, Coinbase can nevertheless boast a 120% increase in active users. In addition, the transaction volume tripled over the period.
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