Wall Street Winks At Dogecoin: ‘It’s More Than A Meme’

A top crypto asset manager has doubled up on its backing of Dogecoin, asserting the meme coin is more than a joke due to its provision of actual utility. The company recently pointed to Dogecoin’s community orientation, speed of transactions, and low costs as important benefits in the cryptoverse.

Speed And Low Costs Drive Everyday Use Cases

According to 21Shares, Dogecoin processes blocks every minute – 10 times the rate of Bitcoin. This rapid processing combined with low fees makes it particularly useful for making small payments and tips. The asset manager attributed these technical attributes as the reasons why firms such as Tesla, AMC Theatres, and Newegg now take Dogecoin as payment.

Dogecoin has just been added by the Open House Group, one of the major real estate players listed on Japan’s Tokyo Stock Exchange. Payments processor BitPay has also assisted thousands of global merchants in taking DOGE on everyday transactions.

10-Year Growth Reaches Staggering 130,000%

Over the past decade, Dogecoin has seen its value climb by an eye-popping 130,000%, which breaks down to an annual growth rate of nearly 130%. These figures, reported by 21Shares, put DOGE at the top of the performance chart among the 25 largest cryptocurrencies by market value.

In contrast to Bitcoin’s fixed supply, there is no ceiling on the total amount of Dogecoin in existence. 10,000 DOGE is added to the network every minute, producing roughly 5.25 billion new tokens annually. 21Shares contends this linear mining system has resulted in decreasing inflation rates over time while securing the network.

21Shares has gone from just applauding Dogecoin. The company recently partnered with House of Doge to list the first Dogecoin ETP (Exchange-Traded Product) to bear the Dogecoin Foundation’s stamp of approval. The product offers institutional investors a regulated vehicle for wagering on Dogecoin’s future without directly acquiring the cryptocurrency.

The asset manager also submitted filings with the Securities and Exchange Commission last week for a possible Dogecoin ETF in the United States. They’re not the only ones doing this—companies like Grayscale and Bitwise have done the same to create Dogecoin ETFs.

Meanwhile, traders looking at Dogecoin are watching closely the Relative Strength Index (RSI) at 62.32, which indicates excellent buying pressure but not yet on the verge of overbought.

Market observers point out the histogram has switched to positive and some short-term traders interpret that as a “buy” sign. Although deep-pocketed investors are cautious, retail traders are eyeing the next resistance at $0.21.

Piercing through that level could push DOGE to rise as high as $0.24 or even $0.29, technical analysts monitoring the performance of the cryptocurrency have disclosed. Under these trends, some market players anticipate Dogecoin’s increasing trend to extend.

Featured image from Pixabay, chart from TradingView