The market capitalization of Nasdaq-listed cryptocurrency exchange Coinbase (NASDAQ: COIN) has now fallen below that of meme-inspired cryptocurrency Dogecoin ($DOGE), as the exchange’s market capitalization is sitting below $8 billion, while DOGE’s market cap is at $9.8 billion.
As first reported by Bloomberg, the measurement doesn’t necessarily reflect the intrinsic value of either project, but shows how the meme-inspired cryptocurrency has been outperforming a major cryptocurrency trading platform.
Coinbase’s shares were significantly affected by the collapse of cryptocurrency exchange FTX, as investors have been moving their funds off of trading platforms at a time in which trading volumes were already decreasing over the prolonged bear market the cryptocurrency industry has been enduring.
The company’s Chief Financial Officer, Alesia Haas, has said Coinbase is preparing for 2023 with a more conservative bias. The company laid off more than 18% of its workforce, or the equivalent of around 1,200 in an effort to cut costs.
Also read: Is Coinbase Going Bankrupt?
Coinbase shares have lost over 85% of their value so far this year, and are currently trading near at new lows near the $35 mark.
Search interest for the meme-inspired cryptocurrency, DOGE, exploded during the cryptocurrency’s massive 10,000% price rally, going from an average of 135,000 monthly searches in April 2020 to 16.5 million in April 2021.
Dogecoin was created back in 2013 as a joke. The cryptocurrency’s community is well-known for taking on philanthropic projects, which included helping charitable organizations. It made headlines in 2014 after raising more than $25,000 worth of DOGE to let the Jamaican bobsleigh team attend the Winter Olympics in Sochi.
The cryptocurrency’s price surged partly with support from celebrities like Elon Musk, who has said it’s his favorite cryptocurrency and moved to accept DOGE payments for Tesla merchandise. DOGE also surged after Musk acquired Twitter, as he is expected to integrate the cryptocurrency into the social media platform.
DOGE was recently included in Binance’s ‘Bluebird Index’, which is a cryptocurrency index that tracks the performance of its own nativ token, $BNB, as well as Mask Network ($MASK) and the meme-inspired cryptocurrency. Binance invested $500 million in Musk’s acquisition of Twitter.
The name bluebird hints at Twitter’s logo, while the index constituents include Binance’s native token, a meme-inspired cryptocurrency Elon Musk has been known for supporting, and a protocol that “allows its users to send encrypted messages over Twitter and Facebook and that “acts as a bridge between the internet and a decentralized network running on top.”
Coinbase has meanwhile kept on developing its services. It recently added Polygon ($MATIC) staking t its Prime offering, and earlier said its self-custody crypto wallet app Coinbase Wallet would be dropping support for four major cryptoassets, including XRP, from January 2023 over “low usage.”
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