Coinbase Valuations Dip Below That of Dogecoin, Is It Justified? – Crypto News – Crypto News
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Coinbase Valuations Dip Below That of Dogecoin, Is It Justified? – Crypto News

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Public-listed cryptocurrency service provider Coinbase (NASDAQ: COIN) has continued to see major value erosion this year. The COIN stock is down by 90% since its listing in April last year, ending trading at $35.17 on Tuesday.

The exchange’s market capitalization is now just at $8 billion, which is $1 billion less than that of memecoin Dogecoin (DOGE). Well, this shows Coinbase is facing the music and double-whammy of a highly volatile US equity market and a highly volatile crypto market.

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On top of it, recent developments like the collapse of the crypto exchange FTX and uncertainties in Binance’s business have led to s significant drop in investor sentiment towards crypto service providers. As a result, a lot of crypto investors have been moving funds off exchanges and into self-custody.

Crypto exchange Coinbase continues to be among the hardest hit this year. The exchange has laid off 18% of its workforce which is roughly equal to 1,200 people. Speaking on this development, Michael Safai, partner at crypto trading firm Dexterity Capital said:

“Coinbase is tied to the fortunes of the broader crypto markets. Dogecoin has no real connection to the macro, but instead is driven almost primarily by headlines and hype, retail investors seem to be hungry for one last pop.”

Dogecoin Rise Once Again

Dogecoin (DOGE) has continued to be in the news despite the crypto winter of 2022. However, a large part of the DOGE price movements can be attributed to Elon Musk’s acquisition of Twitter. The Dogecoin community strongly hopes that someday Musk will integrate DOGE payments into Twitter.

However, several market analysts still fail to find a substantial level of substance in the cryptocurrency meme. “Dogecoin was a simple, straightforward joke that punches above its pay grade all the way to becoming a heavyweight champion,” said Teong Hng, chief executive officer of crypto investment firm Satori Research.

Coinbase has recently published a document explaining the regulatory demands for the crypto space. The crypto exchange expects significant progress in legislation to be made next year in 2023.

Coinbase wants the US Congress to push the CFTC and SEC to publish their respective categorization of crypto.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explores his culinary skills.

The content presented may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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