8 experts reflect Coinbase market entry Dogecoin effect - Dogecoin may have started as a joke in 2013, but few laugh at its strong gains after the famous meme token skyrocketed to a market valuation of around $ 90 billion in April.

More recently, Coinbase, the largest cryptocurrency exchange platform in the United States, announced that private traders can sell, buy and store dogecoin. The company, with its 56 million verified users, accompanied the announcement with a plan to give away $ 1.2 million in dogecoin to encourage users to take advantage of its new cryptocurrency exchange option.

The move came two days after Coinbase said Coinbase Pro users could transfer dogecoin to their accounts. Dogecoin went up 41% with this news.

8 experts reflect Coinbase market entry Dogecoin effect

A tweet from Elon Musk hours later further spurred the token's rise.

https://twitter.com/mims/statuses/1399985389725753346

Dogecoin has skyrocketed almost 8,000% this year, far surpassing the rise of almost 30% for bitcoin and 260% for ether.

The shiba inu-inspired token experiences strong price swings, but some analysts don't seem to bother them too much.

"Doge's price evolution is extremely volatile, but ultimately driven by supply and demand with real capital," Jeffrey Wang, head of America at Amber Group, a cryptocurrency financial services firm, tells. "I think the price movements in doge are a great example of free capital markets in action."

8 experts reflect Coinbase market entry Dogecoin effect

Coinbase has joined Gemini and eToro, which included the meme token in May of this year, as well as Kraken and Binance. Combined, the exchange platforms effectively open the meme token to tens of millions of users worldwide.

While some view the announcement as a seal of approval, others, such as Peter Jensen, CEO of RocketFuel Blockchain, a global payments company, view Coinbase's decision as a strategic business move.

"Exchanges like Coinbase Pro and eToro have included doge only because of the massive influx of particular users that dogecoin is receiving, which in turn means that it is a profit-generating currency for exchanges," Jensen explains.

Jensen adds that unless there is a major technological improvement in dogecoin, it will remain a highly speculative asset without any technological merit.

8 experts reflect Coinbase market entry Dogecoin effect

Here's what eight other experts think of the recent addition of dogecoin to the largest cryptocurrency exchange platforms:

"The popularity of dogecoin is really a derivative of the era of memes-populists. In essence, it's a fun way for people to transact and get involved in cryptocurrencies and investments. Doge is unlikely to have any "use cases," even in the broad sense of the term. It is important to note that even the creator Billy Markus sold all his holdings in dogecoin. Doge cannot compete with bitcoin in the long run because bitcoin has a limited supply, and is emerging as a kind of"digital gold". It also cannot stand up to Ethereum due to the functionality of smart contracts and ETH's decentralized applications. On its own, it has nothing to offer. So I don't see this as a turning point for dogecoin's legitimacy," explains Muneeb Jan, author of the Macro Geek newsletter.

"Coinbase is only responding to this popularity. I don't see dogecoin legitimized itself. Coinbase is an exchange, there are no institutions that are buying it seriously. As their offer is unlimited, 10,000 new coins are mined every minute. This makes it highly inefficient as a legitimate cryptocurrency, except for those who use its volatility to trade it and cling to Elon Musk's tweets to inflate its value. Even today, Musk's tweets and mentions of dogecoin seem satirical, not serious. I'm not a fan of the hype around dogecoin because it's a distraction from the useful things that are being done in blockchain and crypto, like DeFi, " sums up Andrew Kiguel, co-founder and CEO of Tokens.com.

8 experts reflect Coinbase market entry Dogecoin effect

"We still see all this as speculative at best. I think the biggest implication is that many small investors will lose money. The broad landscape of cryptocurrencies, in my opinion, is a combination between a pyramid scheme and the wild west. There are people who will make a lot of money, but there are also a lot of people who will lose. There are some more legitimate currencies; however, there are also hundreds that are nothing more than ideas. Those looking for a long-term equity will buy more consolidated cryptocurrencies, such as ether or bitcoin, and simply keep them," says Randy Carver, financial expert.

"As more cryptocurrency brokers start offering dogecoin, I see that its popularity will increase, but it will be time before it is fully accepted. While socially active and smaller account-sized retail investors are interested in dogecoin and cryptocurrencies in general, active retail investors trading stocks and equity options have largely stayed out of cryptocurrency trading. With only 50,000 daily transactions allowed from dogecoin, it's a whole generation away from wider acceptance among retail and institutional investors," says Dan Raju, CEO of Tradier.

8 experts reflect Coinbase market entry Dogecoin effect

"Although a bit late, Coinbase's announcement is another positive sign for the doge community. Although it started as a joke, doge's track record has earned a place among "legitimate" digital assets. Although the technology itself has not evolved much, doge has an incredible community, whose power should not be underestimated. It may have taken Elon Musk and other influential figures to raise awareness and convince institutions of dogecoin's legitimacy, but as a P2P network it has been widely used for nearly a decade."- Jason Lau, chief operating officer of Okcoin.

"The coin meme is now definitely in the mainstream. We are likely to see even more interest and adoption from short-term private investors, as well as some of the current doge holders retiring. In the long run, we simply don't know; interest in doge may decline, or growing popularity may force traditional financial institutions to rethink what counts as a legitimate asset class. As global adoption continues, the cryptocurrency trading landscape will evolve with it. Dogecoin is a representation of how everyday Internet users can shape markets when they have the opportunity, " sums up Philip Gradwell, chief economist at Chainalysis.

"That Dogecoin has entered the offering of Coinbase, Gemini and eToro shows that cryptocurrencies with very strong communities and enjoying a positive feeling cannot be ignored, even though they are meme coins. After all, exchanges make money from trading and the listing of popular cryptocurrencies is good for business, as long as it's not securities. Liquidity and broad exposure should help dogecoin reach an even larger audience. Originally a meme coin, dogecoin is now a more legitimate digital currency in the eyes of new crypto users than the rest of the sector," Ian Balina, founder and CEO of Token Metrics.

"With the listing of dogecoin on Coinbase, one of the most reputable exchanges, a huge boost is created, as well as liquidity. This drives the price and creates a positive feedback loop regarding the momentum. I think Coinbase made an important decision, as it ultimately points out that even if coins are initially created as a joke, with enough momentum and a strong community, it can become something much bigger. No wonder doge started out as a joke, but with the recent push and price action, I think it has created a positive feedback loop to bring back developers and entrepreneurs and institutions, " says Ben Weiss, CoinFlip CEO.