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Dogecoin soared on Friday following a tweet from supporter Elon Musk, and as Coinbase said it would list the meme-inspired cryptocurrency.
The price of Dogecoin rose to an intraday high of over 56 cents in early morning trading, according to Coin Metrics data. As of 10:30 a.m., Dogecoin rose 39.4% to 54 cents per coin, which is the best day since April 16. It’s still down about 20% from a record high of almost 67 cents a week ago.
Musk tweeted Thursday that he is working with Dogecoin developers to improve transaction efficiency.
On Wednesday, Tesla’s CEO surprisingly announced that his electric car company would no longer accept Bitcoin as a form of payment due to concerns about its environmental impact.
Dogecoin is not taken very seriously by loyal Bitcoin supporters. It started as a joke in 2013, inspired by the “Doge” meme, but has since found a growing online community. Dogecoin is now the fourth largest crypto by market value on CoinMarketCap, valued at over $ 68 billion.
Financial experts warn that Dogecoin is a highly speculative asset. It has fueled concerns about a possible bubble in the crypto markets – although some economists would say that all cryptocurrencies are in a bubble.
Last week, Bank of England Governor Andrew Bailey warned crypto investors “be ready to lose all your money,” reiterating a similar warning from the UK Financial Conduct Authority.
Bitcoin was also higher on Friday, with the world’s largest digital asset gaining 3.7% at a price of $ 50,695. Ether, the second largest cryptocurrency, rose 10.3% to $ 4,052.