Markets
7 Reasons Why Dogecoin (DOGE) Could Upend Ripple’s XRP in 2024
Dogecoin’s total market capitalization was $19.8 billion at the time of this writing, with the hash work-based meme currency trading at $0.145.
Meanwhile, Ripple XRP Price it moved markets at $0.50 per token and its market capitalization stood at $27 billion, according to data from CoinMarketCap.
Ripple’s lawsuit against the US SEC could end as early as this summer, second a legal expert. This would represent the end of an ongoing headwind for XRP and portend an increase in its fortunes.
But here are seven reasons why Dogecoin could overturn Ripple’s market cap by the end of the year with a little green candle or two.
1. Elon Musk
Dogecoin has Elon Musk. This is huge credibility and publicity. Ripple needs a champion with similar cachet to keep up with DOGE.
The closest he has until now It’s Gary Gensler. After all, the SEC chairman’s fierce opposition to XRP signals to investors that it could be very disruptive in global finance and offer great returns for the money invested.
DOGE mistaken for $0.003 coin in April 2019, when the leader of Tesla and SpaceX tweeted, “Dogecoin might be my favorite cryptocurrency. That’s very nice.” That’s a +4,600% gain for the OG meme coin five years from now, for an average annualized return on investment of +920%.
2. Inflows from large Dogecoin holders increased by 582%
Inflows from large Dogecoin holders increased by 582% in 24 hours on May 4, in a very bullish move for the asset. At the same time, Ripple whales are moving their XRP tokens on exchanges in a bearish sign.
Crypto Daily Trade Signals, a popular Dogecoin YouTube channel, reported“Data from IntoTheBlock reveals a substantial increase in the inflow of large holders, rising from 129.63 million DOGE to an impressive 754.75 million DOGE, equivalent to approximately $116.98 million.”
Meanwhile, XRP saw massive whale-sized moves on exchanges in May. On the 5th, a transaction occurred that pushed 28,240,000 XRP (worth $14,948,393 USD at the time) onto Bitstamp in a potentially bearish signal for the Ripple token.
Then, on May 12th, another 30,230,000 Ripples were moved from a unknown wallet on Bitstamp, according to data from Whale Alert.
3. Tesla adds Dogecoin for payments
Tesla, Inc. has accepted Doge for years – for company caps and T-shirts. This month, for the first time ever, the electric car maker began accepting DOGE payments for new cars and trucks. Very fantastic. Dogecoin rose by 21% after introduction.
Musk said this in March I think Tesla should add support for Dogecoin payments.
XRP also has some pretty amazing partnerships and continues to involve more corporate brands in the conspiracy. But many of these involve large banks and foreign governments. It will take many years to see their fruits compared to the immediate push of the network effects of the Doge economy. Other companies that they accept Doges include Microsoft, AMC, Twitch and Newegg.
4. Lots of meme power
Simply put, Doge memes have enormous power on the Internet, especially in the nerdy tech neighborhood that has deep pockets to move markets.
Ripple is more like a TradFi bank than Doge, despite its decentralization, and probably doesn’t want a furry mascot to boost its popularity in the short term. Maybe it shouldn’t matter. But for the crypto brethren, that’s it.
The best earnings of 2023 they were mostly meme coins. The leader of cryptocurrencies in the first quarter of 2024 It was also a meme coin – PopCat.
5. Lots of teamwork, such power
Dogecoin peers are unstoppable!
The currency’s meme power has translated into real economic disruptions with lots of zeros and commas on them. Ethereum Shiba Inu (SHIB), Solana Bonk (BONK), DogWifHat (WIF), and Ethereum/Binance Floki Inu (FLOKI) have provided altcoin investors with world-class gains over the past 12 months.
VanEck, ETF fund manager in New York City just launched the MarketVector Meme Coin Index this month. Of the six currencies in the index, five are Doge memes.
6. Test of working power
Even during times like last week, when meme coins caused losses among cryptocurrencies (after driving earnings from the previous week), Doge’s price has held up among its crypto mining/proof-of-work investors.
Dogecoin is a December 2013 fork of the original Bitcoin blockchain launched in January 2009. It works in much the same way as the BTC network, and investors choose it because its electricity requirement to participate helps prevent inflation and maintain the power of ‘purchase.
Even environmentalists tired of central bank currency are leaning into PoW chains. Proof-of-Work has leveraged the digital economy for the oil and alternative energy industries. It is the world’s largest reward for the cheapest sources of electricity.
7. Fed rate cuts by the end of the year
The Fed can handle it rates stable in June, but the Bank of England could start the rush to revalue debt with rate cuts next month.
Many economists, analysts and commentators wait again The Fed will cut the rate later this year, especially if consumer prices deflate continue to postpone to April and May.
In any case, after the recent $1.2 trillion spending in March to fund the US government for another six months, Washington aims to spend $2.4 trillion per year. When this happens, prices usually surge and seriously exacerbate cryptocurrency markets’ already voracious demand for inflation havens like Bitcoin and Dogecoin.
Conclusion for investors
Digital assets are held at risk of loss and there is no way to guarantee the future performance of the markets. But, based on the fundamental considerations listed above, Dogecoin price may be undervalued at $0.14 after falling from the peak of $0.22 in March.