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Here's Why Dogecoin Skyrocketed Today

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

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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 Coinbase.com 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.

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Stocks Mentioned

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

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