Dogecoin is back over $ 0.40 after a massive rally in the wake of the news that popular online trading platform eToro will introduce the cryptocurrency to its clients.
The news helped push Dogecoin’s market cap to over $ 50 billion, and it is now trading for just a few cents from its all-time high of $ 0.43.
The decision to make the meme-inspired cryptocurrency available to its users opens the door to dogecoin investment and trading for more than 20 million registered eToro users worldwide.
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The trading app has come under criticism from customers for not supporting dogecoin – the sixth-highest cryptocurrency in the world – despite making notable price gains in 2021.
Other major platforms and exchanges that have been reluctant to add dogecoin Coinbase include. One reason for this may be its volatility, as experts warn that the potential for massive gains comes with the risk of massive losses – even compared to other cryptocurrencies known to be volatile.
“The price of Dogecoin in relation to Bitcoin is what makes it so great at the moment. From January 1 to the market peak on April 19, the price of Dogecoin has risen around 35 times against Bitcoin and 70 times against the US dollar,” said Professor Carol Alexander, a leading crypto academic. At the University of Sussex Business School, The Independent.
It is a low-cost, high-risk investment with the potential for huge returns – something that cannot be found anywhere else at the moment. Even risky bonds have no returns now. “
An eToro representative was not immediately available to comment on the reason for the decision to open up to dogecoin. In a customer email, she mentioned that it is part of the company’s “further expansion of crypto services”, which now includes 19 cryptocurrencies.
The email reads: “Under the brand, Dogecoin is based on solid technical foundations, using a proof-of-work mechanism, such as Litecoin or Bitcoin, with slight but fundamental differences.”
“In contrast to a steady supply of Bitcoin and relatively slow blocking times, the supply of Dogecoin increases at a steady rate, making Dogecoin inflating with faster and cheaper transactions – qualities that some say make it ideal for use as a currency in the real world.”
Among the Dogecoin advocates claiming that it could be a viable real-world currency is Elon Musk, who previously suggested it could be the “March coin”.
The CEO of SpaceX and Tesla offered to buy so-called Dogecoin ‘whales’ earlier this year, claiming that people who hoard large stocks of cryptocurrency are preventing it from becoming a mainstream currency.
“If the major Dogecoin holders sell most of their coins, you will get my full support,” he wrote in a tweet in February.
“Excessive concentration is IMO’s only real issue. I would literally pay in actual dollars if they only voided their accounts.”
His tweets and comments often had an immediate effect on the price of dogecoin, which was made clear recently when he referred to himself as the “Godfather”.