Boasting a market capitalization of around $8 billion, Coinbase is being outshone by Dogecoin – an internet meme coin created in 2013 for comedic purposes. This metric does not necessarily indicate intrinsic value, but it reflects how meme coins have outperformed major US exchanges during this time of unprecedented volatility.
Dogecoin beats Coinbase by $2 billion in market cap
At the time of writing, DOGE has plummeted 18% in the past week, with a current trading value of $0.074442. However, this cost decrease should not be concerning; after all, its 8th place ranking among top cryptos and an impressive market cap of $10.24 billion demonstrate that it is still performing well, according to Coingecko’s data.
In sharp contrast, Coinbase Global is valued at $8 billion, a whopping difference of around $2 billion compared to the joke coin. As reported by Bloomberg, this gap between the exchange and alt-coin is quite significant.
Interestingly, the Dogecoin (DOGE) cryptocurrency has an even higher market cap of roughly $9.9 billion, almost double that of Coinbase’s COIN token.
Does Dogecoin have more to offer than just a cute facade?
In recent months, Coinbase has suffered significant losses due to a high volume of investors withdrawing their coins or exiting cryptocurrency altogether. Consequently, the exchange had to let go of 1,200 employees—representing 18% of its staff—in 2020 alone. Chief Financial Officer Alesia Haas declared they are looking ahead with a more conservative approach to ensure success in 2023.
Michael Safai, a partner at Dexterity Capital, commented that Coinbase depends on the fate of the crypto markets. On the other hand, Dogecoin isn’t anchored to any macroeconomic forces- promoters and their headlines are what energize it. It appears retail investors want one more jump in price before moving away from this coin.
Following billionaire Elon Musk’s Twitter purchase in October, Dogecoin underwent a significant resurgence. Unfortunately, it has recently dropped with the rest of the cryptocurrency market due to FTX’s collapse.
Jacob Sansbury, the CEO of Pluto online trading platform, commented: “Dogecoin surpassing Coinbase in terms of market capitalization shows that the crypto market is currently unstable. In such a volatile environment, even ‘sillier’ projects are performing well despite good ones losing out.”
The historic surge of Dogecoin last year was spurred by Elon Musk’s announcement that Tesla customers could use the token for electric car purchases. Also, this caused a flurry of activity across trading platforms like Binance and Coinbase as people rushed to buy the coin, along with other doge-themed cryptocurrencies and meme stocks.
According to Teong Hng, CEO of crypto investment firm Satori Research: “Dogecoin is a playful joke that has defied all odds and risen in prominence to become an undeniable heavyweight champion.”