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December 5, 2022
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3 conditions for Dogecoin to pass $ 1

Dogecoin rallying (DOGE) can grow and become a “real” payment token and widely accepted by retailers.

For its price to grow, three relevant conditions need to be met, according to El Lee, the co-founder and Chief Operating Officer (COO) of Onchain Custodian (ONC), based in Singapore, a provider of tiered digital asset custody services. institutional.

This week, the price of DOGE doubled to almost $ 0.7. From this level, it would be necessary to jump more than 40% to reach US $ 1 – an impossible task, as it jumped 50% in one day earlier this week. Also this week, its market capitalization exceeded $ 80 billion, making DOGE the fourth largest crypto crypto by this measure. For comparison, the third largest crypto, the binance currency (BNB), almost hit $ 100 billion this week, while BTC is still above $ 1 trillion.

However, for the price to rise further, the strong community and legitimacy provided by celebrity endorsements are not enough. Have to “improve in all fields“Lee told Cryptonews.com, listing three points that” would really increase the price “:

  1. Increasing the market capitalization of crypto assets as a space;
  2. General adoption and use cases: celebrities, brands and large companies that want to partner with it, and Lee says that some of them will begin to include DOGE in their payment systems;
  3. Even more endorsement, for example, partially paying DOGE workers.

And that kind of use case would effectively increase the price, but we’re not talking about $ 1 […] I think it would probably increase the price even more than that”Said Lee, a former investment banker who previously held positions at CIMB Group and JPMorgan Chase.

‘Cult’ support

According to him, the meteoric rise in prices has prompted wealthy individuals to ask questions about a cryptocurrency that was not even on their radar before.

“In the past few weeks, we have definitely seen an increase in inquiries from our clients (which include high net worth individuals, family offices, large funds and others) about adding dogecoin to their holdings. I am optimistic about Dogecoin’s prospects because of 1) positive image, 2) celebrity endorsement, 3) healthy adoption and 4) strong community, ”said the COO.

Younger wealthy individuals (between 20 and 40 years old) are more open to DOGE, as they join the revolution and connection with thought leaders like Elon Musk, while the slightly richer group (40 years onwards) “is getting away or does not show as much interest in dogecoin “, He added. They cannot see the characteristics of hedge inflation like BTC, nor the utility of Ethereum that feeds dapps and [fichas não fungíveis] NFTs. Most of them bought cryptography with an appreciation for Bitcoin and Ethereum. “

Right now, said Lee, DOGE is “attached to community support similar to a cult“. Notably, although it started out as a joke, it has a series of “very strong characters”- celebrities – endorsing, tweeting about it and discussing on social media. “It will be that type of character that will be able to drive the use of dogecoin”Said Lee.

And these celebrities talking about using DOGE to make purchases or allow discounts on the use of the currency, increase its value, because people estimate that there will be a greater demand.

In addition, there are some emotional impacts at stake on buyers. First of all, it is cheaper to own a dogecoin than a bitcoin.

Second, DOGE is seen as a fun and cool coin, and its dog symbol is beautiful, recognizable and striking. The image implies cordiality and loyalty and, even if people do not immediately recognize the name – as they do with bitcoin -, they will associate it with the image of the meme dog. This immediate association and recognition is highly relevant, according to Lee.

A payment token

However, this handsome Shiba Inu can bite his speculators.

“In my personal opinion, all coins are susceptible to some form of manipulation,” said Lee. “It’s just a matter of how big the player must be to manipulate the price.”

According to him, the right regulations can help prevent this.

Furthermore, while DOGE today is seen as a fun payment symbol, there is nothing to prove that it will not change in the future, emphasized Lee. If it hypothetically evolves to become the second currency by market capitalization, “can become a kind of good proof of value at that moment. ” And as market capitalization grows, it becomes more and more difficult to manipulate the price of the currency.

In either case, Lee does not see interest in the currency “fall so soon” and “absolutely think”Retailers will start accepting DOGE and could be a real payment token, if it weren’t so volatile.

People are now accepting that BTC is an asset class for investment, and what is needed is “something more conventional, that works very fast”. This is where DOGE comes in, which has elements that make it function as a payment token instead of currencies like bitcoin, litecoin (LTC) or bitcoin cash (BCH), for example – standing out as one of the main players. For example, Dogecoin’s transfer time is 1 minute, as opposed to 2.5 minutes for Litecoin or 10 minutes for Bitcoin, so it is faster than both.

As reported in April, the largest BitPay cryptocurrency processor said that BTC’s share of its payments has reached its lowest level, as altcoins like DOGE are gaining momentum.

In addition, Latvian state air carrier airBaltic added DOGE support in March. The Dallas Mavericks is now accepting dogecoin too.

“We chose to do it, because sometimes in business you have to do things that are fun, engaging and we hope to generate a lot of PR,” Dallas Mavericks owner, Mark Cuban, said in March.

The question of support and demand

ONC itself has not yet integrated DOGE into its platform.

“Our original strategy was to start integrating from the top 20 down [mas] dogecoin suddenly jumped into […] the top 10. It also took us by surprise, how quickly market capitalization exploded. Therefore, we are readjusting ourselves ”, said the COO.

He added that probably in the next half of this year, there will be some changes to the tokens to be listed on the platform.

Integrating a token is “a rigorous process”Said Lee, and the management team needs to believe that the token will have ongoing support and user / customer demand. And as one of the elements of the process is to check with the insurer that the token is covered, “In fact, I don’t see a big risk, as long as we can release the integration process for Dogecoin”, He added.

In any case, according to him, in the next five years, “a lot of new tokens”Will arrive on the scene, with bitcoin and dogecoin becoming‘ old ’coins, but“there will always be room for guys like bitcoin, dogecoin, ethereum ”- users are likely to change, but there will be multiple uses for currencies.

Source: CryptoNews

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