Dogecoin’s surprising rise continues to attract attention, even from Wall Street. A major crypto asset manager, 21Shares, has significantly increased its support for the cryptocurrency, arguing that it’s more than just an internet joke. They highlight several key factors driving its growth and adoption.
Fast, Cheap, and Widely Accepted
21Shares points to Dogecoin’s speed and low transaction costs as major advantages. It processes blocks ten times faster than Bitcoin, making it ideal for small payments and tips. This efficiency has led to its adoption by several notable companies, including Tesla, AMC Theatres, and Newegg, as well as real estate firm Open House Group in Japan. Payment processor BitPay also facilitates DOGE transactions for thousands of merchants globally.
Impressive Growth and a Unique Supply Model
Over the past ten years, Dogecoin’s value has increased by a staggering 130,000%, according to 21Shares. This translates to an annual growth rate of roughly 130%, outperforming many other top cryptocurrencies. Unlike Bitcoin’s fixed supply, Dogecoin has no upper limit. 10,000 new DOGE are added to the network every minute, resulting in about 5.25 billion new tokens annually. However, 21Shares argues that this linear mining system has actually led to decreasing inflation rates over time.
21Shares’ Big Bet on Dogecoin
21Shares isn’t just praising Dogecoin; they’re investing in it. They’ve partnered with House of Doge to launch the first Dogecoin Exchange-Traded Product (ETP) endorsed by the Dogecoin Foundation. This provides institutional investors a regulated way to bet on Dogecoin’s future without directly buying the cryptocurrency. They’ve also filed with the SEC for a potential Dogecoin ETF in the US, following in the footsteps of companies like Grayscale and Bitwise.
Technical Analysis Hints at Further Price Increases
Technical indicators are also suggesting potential price increases for Dogecoin. The Relative Strength Index (RSI) is at 62.32, indicating strong buying pressure. The positive histogram is seen by some short-term traders as a “buy” signal. While large investors remain cautious, retail traders are watching the $0.21 resistance level. Breaking through this could potentially push DOGE as high as $0.24 or even $0.29, according to some analysts. This, combined with other positive trends, leads some to believe Dogecoin’s upward trajectory will continue.
