While Ripple Labs may be in the final stages of its lawsuit with the United States Securities and Exchange Commission (SEC) that has kept XRP holders in suspense since December 2020, Dogecoin (DOGE) is threatening to have could overthrow it this year.
At the time of writing, Dogecoin’s total market capitalization is $19.8 billion and trading at $0.15. Meanwhile, the XRP price is around $0.52 and the market capitalization is over $29 billion.
According to a legal expert, Ripple’s lawsuit with the US SEC could end as soon as this summer. That would be the end of the ongoing disadvantages for XRP and signal good fortune to come.
But there are 7 reasons Dogecoin could topple Ripple’s market capitalization by the end of the year with just one or two small green candles.
Elon Musk
Dogecoin is fortunate to receive full support from Elon Musk, so it has great reliability and openness. Ripple needs a figure of similar caliber to stay ahead of DOGE.
The closest one so far is Gary Gensler. After all, the SEC Chairman’s harsh opposition to XRP signals to investors that it can be highly disruptive in global finance and bring great returns on investment dollars.
DOGE was trading for $0.003 in April 2019 when the Tesla and SpaceX boss tweeted:
“Dogecoin might be my favorite cryptocurrency. It’s pretty cool.”
DOGE price then increased +4,600% over a 5-year period with an average annual return on investment of +920%.
Cash inflows from major Dogecoin holders increased 582%
Capital inflows from major Dogecoin holders increased 582% in 24 hours on May 4, a very bullish move for the asset. On the contrary, Ripple whales are transferring XRP to exchanges, sounding the bearish alarm.
Crypto Daily Trade Signals, a popular Dogecoin YouTube channel, has reported:
“Data from IntoTheBlock shows a significant increase in Inflows from large holders, from 129.63 million DOGE to an impressive 754.75 million DOGE, or approximately $116.98 million.”
Meanwhile, “huge” amounts of XRP were transferred to exchanges in May. On May 6, Whale Alert reported a push transaction of 28,240,000 XRP (worth $14,948,393 at at that time) to Bitstamp, sparking bearish concerns for Ripple’s token.
Then, on May 12, another 30,230,000 XRP were transferred from an unknown wallet to Bitstamp, according to Whale Alert data.
Tesla adds Dogecoin to payment methods
Tesla, Inc. has embraced Doge for years with logos printed on the company’s beanies and T-shirts. This month, the electric car maker began accepting DOGE payments for new cars and trucks for the first time. DOGE price increased by 21% after its introduction.
Musk said back in March that Tesla should add support for Dogecoin payments.
XRP also has some pretty great partnerships and continues to attract more enterprise brands. But many of them are from large banks and foreign governments. It will take them years to see results compared to the immediate boost from the network effects of the DOGE economy. Additionally, there are other companies that accept Doge including Microsoft, AMC, Twitch, and Newegg.
More meme power
Simply put, DOGE memes have enormous power on the Internet, especially in the novel technology sector with abundant capital to move the market.
Ripple is more like a TradFi bank than Dogecoin, although it is decentralized and probably doesn’t want to enshrine a mascot to increase its popularity in the near term. For many people, that doesn’t matter. But for crypto brothers, it’s the opposite.
The tokens that will increase in price the most in 2023 are mainly memecoins. The leading crypto project in Q1 2024 is also a memecoin called PopCat.
Very team spirit, great influence
The birth of a project similar to Dogecoin is unstoppable.
Shiba Inu (SHIB), Solana Bonk (BONK), DogWifhat (WIF) on Ethereum and Floki Inu (FLOKI) on Ethereum/Binance have delivered altcoin investors world-class returns over the past 12 months.
ETF manager VanEck launched the MarketVector Meme Coin Index this month. Of the six currencies on the index, five are inspired by the Doge meme.
Proof of Work power
Even during periods like last week, when memecoins posted losses after leading gains the previous week, DOGE price maintained its strength with investors.
Dogecoin was forked in December 2013 from the original Bitcoin blockchain launched in January 2009. Therefore, the project operates in a similar way to the BTC network and investors choose DOGE because of the need to use electricity to participate to help prevent inflation and maintain purchasing power.
Environmentalists fed up with central bank currencies are also relying on Proof of Work (PoW) chains. After all, PoW harnesses the digital economy for the oil and gas/alternative energy industry. It benefits the world to have cheaper electricity.
The Fed cuts interest rates later this year
The US Federal Reserve (Fed) was able to keep interest rates steady in June, but Bank of England is expected to begin the race to reprice debt with a rate cut next month.
Many economists, analysts and commentators still expect the Fed to cut interest rates later this year, especially if consumer price deflation continues into April and May.
Either way, after the recent $1.2 trillion spending bill in March to fund the U.S. government for another six months, Washington is on pace to spend $2.4 trillion annually. . When that happens, it typically drives up prices and exacerbates the crypto market’s already huge demand for inflationary havens like Bitcoin and Dogecoin.
Conclude
Digital assets always carry a risk of loss and there is no way to guarantee how the market will perform in the future. However, based on the fundamental considerations listed above, DOGE may be undervalued at $0.15 after falling from its peak of $0.22 in March.
