Markets
7 Reasons Why Dogecoin (DOGE) Could Topple Ripple’s XRP in 2024
Dogecoin’s total market cap was $19.8 billion at the time of writing, with the hash-powered meme coin trading at $0.145.
Meanwhile, Ripple XRP Price moved the markets at $0.5 per token and its market capitalization stood at $27 billion, according to data from CoinMarketCap.
The Ripple lawsuit against the American SEC could end as early as this summer, according to a legal expert. This would be the end of persistent headwinds for XRP and portend an increase in its fortunes.
But here are seven reasons why Dogecoin could topple Ripple’s market cap later this year with a little green candle or two.
1. Elon Musk
Dogecoin has Elon Musk. It’s such huge credibility and publicity. Ripple needs a champion with similar cachet to stay ahead of DOGE.
The closest he gets so far is Gary Gensler. After all, the SEC chairman’s staunch opposition to XRP signals to investors that it could be highly disruptive in global finance and generate large returns for the money invested.
DOGE exchange against $0.003 coin in April 2019, when Tesla and SpaceX leader tweeted, “Dogecoin might be my favorite cryptocurrency. This is really cool.” This represents a +4,600% gain for the OG meme coin over five years for an average annualized ROI of +920%.
2. Large Dogecoin Holders Flush Up 582%
Inflows from large holders of Dogecoin jumped 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 to exchanges in a bearish sign.
Crypto Daily Trade Signals, a popular Dogecoin YouTube channel, reported“IntoTheBlock data reveals a substantial increase in the inflow of large holders, from 129.63 million DOGE to an impressive 754.75 million DOGE, the equivalent of approximately $116.98 million. “
Meanwhile, XRP saw huge whale-sized moves on exchanges in May. On the 5th, a transaction pushed 28,240,000 XRP (worth $14,948,393 at the time) onto Bitstamp, a potentially bearish signal for Ripple’s token.
Then, on May 12, another 30,230,000 Ripple moved of a unknown wallet on Bitstamp, according to Whale Alert data.
3. Tesla adds Dogecoin for payments
Tesla, Inc. has been accepting Doge for years – for company hats and t-shirts. This month, for the first time, the electric car maker began accepting DOGE payments for new cars and trucks. Great. Dogecoin surged by 21% following the introduction.
Musk said in March that he was thinking Tesla is expected to add support for Dogecoin payments.
XRP also has some pretty impressive partnerships and continues to bring more corporate brands into the conspiracy. But many of them are owned by big banks and foreign governments. It will take many years for them to bear fruit, compared to the instantaneous increase in network effects of the Doge economy. Other companies who accepts Doge includes 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 increase its popularity in the short term. Maybe it shouldn’t matter. But for crypto bros, it is.
The best winners of 2023 were mostly coins. Crypto Leader in Q1 2024 was also one piece meme – PopCat.
5. Very teamwork, such influence
Dogecoin peers are unstoppable!
The very power of money has translated into real economic disruption with lots of zeros and commas on it. Ethereum Shiba Inu (SHIB), Solana Bonk (BONK), DogWifHat (WIF), and Ethereum/Binance Floki Inu (FLOKI) have generated world-class gains for altcoin investors over the past 12 months.
VanEck, New York City ETF fund manager Just Launched MarketVector Meme Coin Index this month. Of the six currencies in the index, five are Doge memes.
6. Proof of work power
Even during times like last week when meme coins led to losses among cryptos (after leading gains from the previous week), the price of Doge remains stable 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 much the same as the BTC network and investors choose it because its electricity requirements to participate help prevent inflation and maintain purchasing power.
Environmentalists, tired of central bank money, are also turning to PoW chains. Proof of work has leveraged the digital economy in the oil and alternative energy industry. This is the world’s largest award for cheaper sources of electricity.
7. The Fed cuts rates later this year
The Fed can hold rates are stable in June, but the Bank of England could start the race to revaluate the debt with rate cuts next month.
Many economists, analysts and commentators I’m still waiting The Fed will cut rates later this year, especially if consumer price deflation continue to refer to April and May.
Regardless, after the recent $1.2 trillion spending bill in March to fund the U.S. government for six more months, Washington is set to spend $2.4 trillion per year. When this happens, it usually drives up prices and seriously worsens crypto markets’ already voracious demand for inflation safe havens like Bitcoin and Dogecoin.
Conclusion for investors
Digital assets are at risk of loss and there is no way to guarantee future market performance. But, based on the fundamental considerations listed above, Dogecoin price could be undervalued at $0.14 after falling from its high of $0.22 in March.