Wen Dogecoin moon? On-chain data and trading volumes suggest soon

On-chain activity and trading volumes at major exchanges have analysts convinced that DOGE is turning bullish again.

The cryptocurrency market has had a wild ride thus far in 2021 as multiple sub-sectors including decentralized finance (DeFi), nonfungible tokens (NFTs), memecoins and layer-two solutions have seen their total value locked and token prices skyrocket to new highs. 

One of the biggest success stories of the year was Dogecoin (DOGE), a simple “joke” cryptocurrency that has morphed into a darling of the cryptocurrency sector. Interestingly, over the past month, the project is again gaining momentum, and several data points suggest sentiment for the DOGE is becoming increasingly bullish.

Data from Cointelegraph Markets Pro and TradingView shows that since hitting a low of $0.159 on July 20, the price of DOGE has rallied 120% to reach an intraday high of $0.35 on Aug. 16 as its 24-hour trading volume jumped by 63% to $8.6 billion.

DOGE/USDT 4-hour chart. Source: TradingView

Three reasons analysts and traders are developing a more bullish outlook for DOGE include increases in on-chain activity, rising trading volumes on top exchanges and an increase in attention from big-name influencers.

On-chain activity shows increased use

The ability to attract new tokenholders is one of the most important factors for the long-term viability of a cryptocurrency project because new users help to increase token velocity and overall demand.

As seen in the following tweet from Philip Gradwell, chief economist at Chainalysis, Dogecoin adoption is currently at its highest level since the 2017 bull market, with new users who have held the token for less than six months currently holding 25% of the circulating supply.

A follow-up tweet from Gradwell provided deeper insight into the on-chain activity for Dogecoin, which had an average of 32,000 daily active users (DAUs) in 2021.

Dogecoin on-chain daily active users vs. price. Source: Twitter

Gradwell said:

“Doge has had an average of 32k on-chain Daily Active Users (DAUs) in 2021, and this has moved with the price. There is an R value of 0.7 between the percentage change in DAUs and the percentage change in the Doge price in 2021 so far.”

Exchange volumes are on the rise

A second reason for the increase in attention from analysts toward DOGE is the rising trading volumes on some of the biggest exchanges, including Coinbase.

As seen in the following tweet from Pentoshi, a pseudonymous Twitter analyst, DOGE’s 24-hour trading volume on Coinbase averaged $200 million per day over the prior week.

Coinbase is the largest fiat on-ramp in the United States, and this spike in activity from traders could be a sign that retail investors are piling back into DOGE and possibly other sub-$1 tokens.

Related: Coinbase beats earnings estimates as analysts say regulation will ‘stifle’ innovation

Mark Cuban touts the benefits of Dogecoin

A third reason for the bullish sentiment surrounding Dogecoin is recent commentary from big-name influencers such as Mark Cuban, who is once again touting the benefits of the Dogecoin as a payment rail to his legion of Twitter followers.

Cuban’s focus on Dogecoin drew the ire of some Bitcoin (BTC) fans who implored the Shark Tank star to just “Buy a stack of Bitcoin and stop the doge shill,” a sentiment to which Cuban directly replied and pointed out that the decision was largely in response to user demand.

Cuban said:

“I don’t shill Doge. I shill the prods & services of my companies. Where we allow people to pay in ANY crypto, 95% of the sales are in DOGE. Customers CHOOSE to use DOGE. We can argue everything and anything re BTC, but right now DOGE is the people’s way to pay.”

The positive shift in momentum for Dogecoin was also registered in the VORTECS™ data from Cointelegraph Markets Pro, which began to detect a bullish outlook on Aug. 9, prior to the recent price rise. 

The VORTECS™ Score, exclusive to Cointelegraph, is an algorithmic comparison of historic and current market conditions derived from a combination of data points including market sentiment, trading volume, recent price movements and Twitter activity.

VORTECS™‌ ‌Score‌ ‌(green)‌ ‌vs.‌ DOGE ‌price.‌ ‌Source:‌ ‌‌Cointelegraph‌ ‌Markets‌ ‌Pro‌

As seen in the chart above, the VORTECS™ Score for DOGE climbed into the green on Aug. 7 and reached a high of 72 on Aug. 9, around 24 hours before its price increased 44% over the next six days.

Rising on-chain activity and 24-hour exchange volumes, along with the return of DOGE promotion by popular influencers, has Dogecoin primed to possibly see its second bull market rally in 2021.

The views and opinions expressed here are solely those of the author and do not necessarily reflect the views of Cointelegraph. Every investment and trading move involves risk, and you should conduct your own research when making a decision.

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Reports suggest that a mainstream tech giant holds shares of Coinbase stock

End of Q2 holdings for Intel showed a small stack of COIN shares, valuing between $500,000 and $1,000,000 at time of publication.

Over the course of 2020 and 2021, the cryptocurrency industry has attracted a notable amount of mainstream attention. In line with the growing awareness of the crypto industry, Intel, a tech company with history dating back to the 1960s, revealed an investment in crypto exchange Coinbase (COIN). 

Although a number of specifics remain unknown, such as when the purchase occurred, required Q2 financial disclosure from Intel showed the outfit carrying 3,014 COIN shares at Q2’s conclusion, according to a Friday article from Barron’s. “Intel was obligated to disclose the stake to the Securities and Exchange Commission because it owns more than $100 million in publicly traded investments,” Barron’s noted.

The disclosure from Intel went public on Aug. 13, according to the article.

Coinbase took its operation public in April 2021, listing directly on the Nasdaq. Since the listing, Coinbase has seen its shares trading between an approximate range of $210 and $430 per share, based on TradingView data.

COIN closed trading on Friday at $261.25 per share. At that price, Intel’s reported end of Q2 holdings currently value $787,407.50. COIN closed Q2 at $253.30, which would have made Intel’s holdings of the asset worth $763,446.20 at the time.

“It is possible that Intel invested in Coinbase before the shares were trading publicly,” the Barron’s article said. “Regulatory filings only require companies that are going public to disclose investors with stakes of 5% or more.”

Intel has had its hand in various blockchain endeavors in the past, including offering a Hyperledger Fabric-based blockchain solution.

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Coinbase to Launch Apple-Like Crypto App Store

Coinbase to Launch Apple-Like Crypto App StoreCryptocurrency exchange Coinbase has unveiled its plan to build “the crypto app store,” inspired by how Apple Inc. built its app store. CEO Brian Armstrong said: “Apple didn’t attempt to build every app for the iPhone, it empowered developers and gave mobile users an easy way to access new innovative apps.” In a blog post […]
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Solana (SOL) is launching on Coinbase Pro

Updated Friday May 21 at 11:08pm ET: We are experiencing technical issues that will temporarily delay the launch of SOL on Coinbase Pro. At this time we are disabling deposits of SOL; withdrawals are still available. We will provide an updated timeline for restoring deposits & enabling trading as soon as possible.

Starting Today Thursday May 20, transfer SOL into your Coinbase Pro account ahead of trading. Support for SOL will generally be available in Coinbase’s supported jurisdictions. Trading will begin on or after 9AM Pacific Time (PT) Monday May 24, if liquidity conditions are met.

One of the most common requests we receive from customers is to be able to trade more assets on our platform. Per the terms of our listing process, we anticipate supporting more assets that meet our standards over time. Most recently we have added trading support for Internet Computer (ICP), Cartesi (CTSI), iExec (RLC), Mirror Protocol (MIR), Tellor (TRB), Tether (USDT), Ampleforth Governance Token (FORTH),1inch (1INCH), Enjin Coin (ENJ), NKN (NKN), Origin Token (OGN), Ankr (ANKR) Curve DAO Token (CRV), Storj (STORJ), Cardano (ADA), SushiSwap (SUSHI), Polygon (MATIC), SKALE (SKL), The Graph (GRT), Aave (AAVE), Bancor (BNT), Synthetix (SNX), Filecoin (FIL), NuCypher (NU), Wrapped Bitcoin (WBTC), Balancer (BAL), Ren (REN) and Uniswap (UNI), along with supporting additional order books. Coinbase continues to explore support for new digital assets.

Starting immediately, we will begin accepting inbound transfers of SOL to Coinbase Pro. Trading will begin on or after 9am Pacific Time (PT) Monday May 24, if liquidity conditions are met.

Once sufficient supply of SOL is established on the platform, trading on our SOL-USD, SOL-BTC, SOL-EUR, SOL-GBP, and SOL-USDT order books will launch in three phases, post-only, limit-only and full trading. If at any point one of the new order books does not meet our assessment for a healthy and orderly market, we may keep the book in one state for a longer period of time or suspend trading as per our Trading Rules.

We will publish tweets from our Coinbase Pro Twitter account as each order book moves through the phases.

Solana (SOL) is a decentralized computing platform that uses SOL to pay for transactions. Solana aims to improve blockchain scalability by using a combination of proof of stake consensus and so-called proof of history. As a result, Solana claims to be able to support 50,000 transactions per second without sacrificing decentralization.

SOL is not yet available on Coinbase.com or via our Consumer mobile apps. We will make a separate announcement if and when this support is added.

You can sign up for a Coinbase Pro account here to start trading. For more information on trading SOL on Coinbase Pro, visit our support page.

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Crypto is a new type of asset. Besides potential day to day or hour to hour volatility, each crypto asset has unique features. Make sure you research and understand individual assets before you transact.

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Solana (SOL) is launching on Coinbase Pro was originally published in The Coinbase Blog on Medium, where people are continuing the conversation by highlighting and responding to this story.

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Bitcoin dips under $60,000 — What’s pulling down BTC price?

The price of Bitcoin suddenly dropped below $60,000 days after the Coinbase public listing.

The price of Bitcoin (BTC) declined below $60,000 on April 17 after a strong rally throughout the past week in anticipation of the Coinbase public listing on Nasdaq.

However, after the COIN listing, which is the ticker of the Coinbase stock, the cryptocurrency market started to correct.

BTC/USDT 1-day price chart (Binance). Source: TradingView.com

An expected Bitcoin sell-the-news drop

Coinbase’s public listing brought significant attention to the cryptocurrency market. It marked the first public listing of a major cryptocurrency exchange, leading to high institutional demand.

As a result, the cryptocurrency market rallied leading up to the listing with BTC price hitting new all-time highs above $64,00. However, it was almost expected to see Bitcoin and Ether (ETH) drop after the fact, considering the tendency of cryptocurrencies to sell off after a major event.

Another major factor that contributed to the drop in price was the relatively high funding rates for longing Bitcoin. This, alongside strong technical resistance at $64,000-$65,000 were the likely reasons that BTC tested $60,000 support after the hype around Coinase’s listing began to fade. 

Bitcoin funding rates. Source: Bybt.com

Meanwhile, the $60,000 level is an important price point for Bitcoin because it took roughly a month for BTC to break out above it.

Hence, it is important for Bitcoin to hold the $60,000 area to maintain the bullish market structure heading into next week.

Traders predict what would likely come next

At the same time, cryptocurrency traders are mixed regarding where Bitcoin will go with its new weekly candle.

For instance, Cantering Clark, a popular cryptocurrency derivatives trader, said that the market isn’t necessarily bullish nor bearish, based on options data.

The Bitcoin options market open interest is ranging. Source: Bybt.com

Instead, Clark noted that the options market trend shows that Bitcoin would likely see sideways actions, which would mean consolidation at around $60,000. He wrote:

“50k and 80k strikes highest contract/notional for $BTC I think these writers will be happy and I am still in the same opinion that the end of April – May begins the shift that makes Bitcoin a less favorable long. No breakout, just range and rotation.”

In the long term, traders are still optimistic about Bitcoin. A pseudonymous trader known as “Crypto Capo” noted that based on historical trends, Bitcoin has broken out of a range that goes back 1,000 days.

The trader emphasized:

“Now some $BTC technical analysis. Bitcoin has broken out of an accumulation range of over 1000 days. This usually results in long extensions. Currently, the increase over the previous ATH is only 200%.”

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