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The price of dogecoin rose to an intraday high of about 55 cents at 2:30 a.m. Eastern Time, Coin Metrics data show is still about 18% lower than a record high of almost 67 cents just a week ago.
Musk announced on Twitter on Thursday that he is working with dogecoin developers to improve transaction efficiency.
That led to brutal sell-off in cryptocurrencies, including dogecoin. Dogecoin has already dropped significantly since then Musk’s performance on Saturday Night Live, in which he called the digital coin “crowded”.
Meanwhile, crypto exchange platform Coinbase said it would on Thursday offer dogecoin support in the next six to eight weeks. Many crypto traders have flocked to the Robinhood zero-fee investment application to trade meme tokens; now the Coinbase move could lead to greater trading activity.
Dogecoin loyal supporters of bitcoin do not take it very seriously. It started in 2013 in jest, inspired by the meme “Doge”, but has since found a growing community online. Dogecoin is now the fourth largest crypto in terms of market value on CoinMarketCap, worth over $ 69 billion.
Financial experts warn that dogecoin is a very speculative asset. He has raised concerns about a potential bubble in crypto markets some economists he would say that all cryptocurrencies are in a bubble.
Bitcoin was slightly higher on Friday, with the world’s largest digital asset at about 0.3% at a price of $ 49,052. Ether, the second largest cryptocurrency, rose 3.6% to $ 3,805.