Dogecoin, created as a humorous take on the initial Bitcoin craze, has emerged as a serious investment vehicle, amassing a market capitalisation of almost $39.48 billion over the years. In trading sessions last week, Dogecoin rose nearly 20%, adding more than $6 billion in market value for investors looking for a cheaper alternative to Bitcoin and Ethereum.
Dogecoin mostly stayed off the radar until November 2021, when its price spiked from almost nothing to reach $0.2612 as of today. The prices have risen on the back of reports of the altcoin’s first Exchange Traded Fund (ETF), following the US Securities and Exchange Commission(SEC) ‘s approval. If all goes well, this would be the first ETF for a memecoin, helping it rise in value even further over the years.
The rally with Dogecoin comes at a time when the attraction for cryptocurrency investments shifts from highly sought-after Bitcoin and Ethereum to relatively cheaper altcoins, offering retail investors an opportunity to explore the potential for capital appreciation away from the stock market.
Other altcoins, like XYZVerse and Avalanche, have also seen their prices rise in double digits, with the former claiming a 1700% rise in value through presales following its launch in June 2021.
Despite the competition, Dogecoin has strengths others may not be able to match- including its high brand recall, no supply cap and an easier and faster blockchain. If Dogecoin’s ETF application is approved, it would open the door for other altcoins to rise in value, especially since cryptocurrencies are now being viewed as a serious contender as an investment medium, even as regulators are compelled to align their processes to prevent tax evasion and criminal use.
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