Bitcoin and Ethereum popped and Dogecoin flopped on Friday

What happened

Cryptocurrencies have been on a wild ride in recent weeks as everything from interest rates to Elon Musk’s takeover of Twitter has caused volatility in the market.

On Friday, trading appeared to settle into a more normal place with industry leaders climbing. As of 2:40 p.m. ET, Ethereum (ETH 6.11%) led the charge by climbing 6%, Bitcoin (BTC 3.60%) was up 3.5%, and Dogecoin (DOGE -2.73%) was up 2.2 percent.

So what

The stock market is up today on some positive earnings reports in the last 24 hours and hopes that any future recession won’t be too damaging to earnings and profits. Some stocks are falling because management hasn’t controlled costs, but the earnings numbers don’t seem to worry investors right now.

Nonfarm payrolls also rose by 261,000 in October, according to a report from the Labor Department this morning, also leading investors to believe the economy is in good shape.

Risk stocks and investments such as cryptocurrencies are rising as a result. But there may be some more fundamental news to think about.

Twitter has reportedly halted the development of a crypto wallet, which could have been used to make it easier to use crypto on the social network. This is notable for Dogecoin because the token’s value has risen more than 100% since Elon Musk completed the purchase of Twitter.

The other notable news was Coin base (COIN 5.41%) reported a fairly strong quarter Thursday after the market closed. Coinbase cut expenses dramatically and looks like it has years of cash to survive the crypto winter, meaning one of the most visible companies in the industry will remain relatively strong. That’s about as bullish as news gets in the crypto markets right now.

What now

Today, there is normal volatility in crypto, but the notable change in recent months is how big companies are starting to take cryptocurrency more seriously. Reddit, Twitter and Starbucks have all expanded their activity in cryptocurrencies and this is very positive for the future of the industry.

I think Coinbase’s performance gives investors a lot more confidence as well. The cost structure of companies like Coinbase just needs to come down to a level where they can survive the current crypto winter and build the products to grow when activity picks up. And if the company’s interest is any indication, the recovery may come faster than many expect.

This is not the kind of day that is going to make me buy cryptocurrencies because I don’t see much fundamental change in the market. But slow and steady increases in user and company usage will bode well for long-term valuations. It may not be Bitcoin or a meme coin like Dogecoin that benefits from this development, but I think Ethereum has a chance to be a fundamental part of the future of cryptocurrency.