On Feb. 15, the UK cryptocurrency exchange StormGain launched a perpetual contract for Dogecoin (DOGE) with up to 30x leverage.
The trading platform decided to make DOGE perpetual futures Tether (USDT)-settled. This is probably because this type of contract doesn’t require an active hedge to protect margin exposure. It’s also fine for those willing to short the futures. Thus, it could be a better choice for retail investors.
While StormGain users can trade DOGE/USDT at the maximum 30x leverage, the exchange team hints that they may increase the amount of the loan later.
Doge Derivatives Going to Exchanges
StormGain is not the first crypto exchange that is following the groundbreaking performance of dogecoin. On Jan. 13, crypto derivatives exchange FTX revealed that it had launched DOGE trading for both spot and futures markets. The platform offered to trade DOGE perpetual futures with up to 101x leverage.
Later on, another exchange BitMEX jumped on the derivatives bandwagon. A blog post from Feb. 3 announced the creation of a perpetual swap for crypto’s favorite joke currency. According to the team, adding DOGE/USDT to the platform was “inevitable” in retrospect:
“As the surge in interest in Dogecoin continues, we are launching a DOGEUSDT perpetual swap contract with up to 20x leverage…”
Combined with Elon Musk’s affection, these listings positively impacted the coin’s general performance. Whereas the asset surged over 600% in January due to joint efforts from the WallStreetBets subreddit, this figure was more than twice as high in early February.
At press time, DOGE trades at slightly over $0,05 per coin, according to CoinGecko. Its market capitalization is growing steadily to $7 billion.
From Joke Into the Mainstream
Recently, Dogecoin has also seen some other developments in light of the notorious Reddit mania. Since Jan. 26, the project has been partnering with Ren and OpenDAO to roll out a stablecoin built on DOGE. Now, the asset is already known as DOGEO and will use dogecoin as collateral.
Even more interesting news came to the healthcare industry on Feb.1, when publicly-traded company Kronos claimed it would accept DOGE as a payment method.
However, after the announcement was made, the Shiba Inu-inspired coin lost more than half its value.
Along with the most prominent influencers in crypto, other celebrities are turning their burning gazes on the asset that started off as pure fun. Apart from Elon Musk himself, the list of Doge proponents already includes Snoop Dogg, Mia Khalifa, Gene Simmons and Kevin Jonas.
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