Dogecoin (DOGE) is making headlines again, as it debuted on Coinbase yesterday. The cryptocurrency, based on the famous meme, has plummeted since its Coinbase launch, with a 13% drop in the past 24 hours. It follows other cryptocurrencies like Bitcoin and Ethereum, which are also down compared to yesterday.
Why is Dogecoin going down?
Dogecoin started trading on Coinbase on June 3, and initially saw a dramatic upsurge in value. On Wednesday, its stock increased by 30 per cent. It hit a peak of $0.40, but a low of $0.36 in the early hours of Friday. Following the Coinbase announcement, speculation was rife that Doge would hit the coveted $1 mark, though this recent dip may prevent this from happening.
— Investing.com (@Investingcom) June 4, 2021
The dip could be attributed to the Coinbase launch, as they announced they would give away $1.2 million worth of Dogecoin to users. To enter, users need to buy or sell $100 worth of Doge by June 10. Therefore, the dip could be due to Coinbase users buying, then instantly selling, their Doge stock, to ensure they can enter the giveaway.
Dogecoin’s saving grace is Elon Musk, the Tesla CEO and cryptocurrency fanatic who publicly roots for the currency. He hasn’t tweeted about Doge for several days, instead praising Bitcoin’s most recent dip. This lack of publicity for its Coinbase debut could mean less people were aware of the launch. That said, the Coinbase official Twitter has rebranded as a Dogecoin account, so publicity shouldn’t be an issue.
— r/dogecoin (@dogecoin_r) June 4, 2021
Whether Doge goes back up remains to be seen. Its Coinbase debut means more people will buy, but equally, many are selling to enter the $1.2 million giveaway. Dogecoin’s success rides on Elon Musk’s publicity and support, so until he posts about Doge again, it could remain in a dip.