Please ensure Javascript is enabled for purposes of website accessibility

Here's Why Dogecoin Skyrocketed Today

By Joe Tenebruso - Jun 2, 2021 at 12:07PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investors will soon have a new way to trade the popular cryptocurrency.

Exchange listings can make or break a cryptocurrency -- and Dogecoin (DOGE -5.23%) will soon be available for trading on the most important exchange of all. 

Beginning Thursday at noon EDT, Coinbase Global (COIN -11.27%) will list several trading pairs for Dogecoin on its Pro trading platform, which is geared toward professional traders. Coinbase Pro account holders will be able to trade the popular cryptocurrency against the U.S. dollar, the euro, the British pound, Bitcoin (BTC -7.04%), and Tether (USDT 0.00%). As a result of the announcement, Dogecoin was up 33% as of noon EDT today.

An upwardly sloping cryptocurrency price chart.

Dogecoin soared more than 30% on Wednesday. Image source: Getty Images.

Dogecoin was created as a joke back in 2013. Yet it has since gained a legion of fans, including Tesla (TSLA -2.05%) CEO Elon Musk, the self-proclaimed "Dogefather." He has repeatedly voiced his support for the cryptocurrency on social media, and his comments have helped to boost investor interest in the token and drive its price sharply higher.

Exchanges have rushed to list Dogecoin to profit from its massive trading volumes. Yet it's important for investors to note that an exchange listing should not be viewed as a vote of confidence for a cryptocurrency. Exchanges generate trading fees whether a token's price rises or falls. And Dogecoin remains one of the more volatile cryptocurrencies in the market.

It should also be noted that Dogecoin is not yet available for trading on or the company's consumer mobile apps. Though, if Dogecoin trading on Coinbase Pro proves popular, it's likely to be only a matter of time before Coinbase lists the cryptocurrency on all of its trading platforms.

Joe Tenebruso has no position in any of the stocks or cryptocurrencies mentioned. The Motley Fool owns shares of and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Dogecoin Stock Quote
$0.07 (-5.23%) $0.00
Tesla, Inc. Stock Quote
Tesla, Inc.
$890.00 (-2.05%) $-18.61
Bitcoin Stock Quote
$21,211.97 (-7.04%) $-1,606.68
Tether Stock Quote
$1.00 (0.00%) $0.00
Coinbase Global, Inc. Stock Quote
Coinbase Global, Inc.
$74.06 (-11.27%) $-9.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/20/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.