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Dogecoin soared on Friday after a tweet from supporter Elon Musk, and as Coinbase said, it would include the meme-inspired cryptocurrency.
The price of dogecoin rose to an intraday high above 56 cents in early morning trading, according to data from Coin Metrics. As of 10:30 a.m., dogecoin was up 39.4% at 54 cents a coin, on track for its best day since April 16. It’s still down 20% from a record nearly 67 cents just a week ago.
Musk tweeted on Thursday that he was working with dogecoin developers to improve transaction efficiency.
On Wednesday, Tesla’s CEO made a surprise announcement that his electric car company would stop accepting bitcoin as payment due to concerns about its environmental impact.
Dogecoin is not taken very seriously by loyal bitcoin followers. It started in 2013 as a joke, 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, worth more than $ 68 billion.
Financial experts warn that Dogecoin is a highly speculative asset. It has stoked 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 that crypto investors should be “prepared to lose all their money,” echoing a similar warning from the UK Financial Conduct Authority.
Bitcoin was also up on Friday, with the world’s largest digital asset up 3.7% at a price of $ 50,695. Ether, the second-largest cryptocurrency, was up 10.3% to $ 4,052.