Soo Zhu, CEO of Three Arrows Capital, believes in the global growth of one of the most popular altcoins this year, Dogecoin. The day before, he said that DOGE has attracted too much attention in the market from individual traders, and this will certainly affect the price of the coin, and, according to him, positively.
Recall that the growth of Dogecoin began in January, when the CEO of Tesla and SpaceX, Elon Musk, suddenly began tweeting about the coin. Let’s talk about Su’s point of view in more detail.
Note that the attitude of the cryptocurrency community towards Dogecoin is mixed. First of all, the project itself was created as a joke, not a tool for solving global problems. In addition, the developers openly left him, while one of them by the name of Palmer said that he had not earned a dollar on his own brainchild. The second developer said that he had enough to buy a Honda Civic.
In July 2021, Jackson Palmer returned to the spotlight of journalists as he criticized the digital asset industry. According to him, there is practically no benefit in the niche, and the cryptocurrencies themselves only help to evade taxes. Shortly thereafter, Canadian financier and TV host Kevin O’Leary likened investing in DOGE to gambling.
Despite this, the representative of the world famous Three Arrows Capital fund sees growth prospects for DOGE.
What are the advantages of Dogecoin
During his recent interview on The Game Theory of Crypto podcast, Zhu mentioned the latest reports from analysts on the Robinhood trading platform, which is very popular among amateur traders in the US. 62 percent of the firm’s profits in the cryptocurrency trading niche in the second quarter of this year come precisely from commissions on transactions with DOGE.
Here is a quote from an expert in which he shares his attitude to what is happening. The replica is provided by Cointelegraph.
I think the best way to realize the potential of DOGE is to take a look at Robinhood, which is a platform of sorts for crypto investing enthusiasts. DOGE accounts for 60 percent of its cryptocurrency earnings. At the same time, digital assets themselves account for about 40 percent of Robinhood’s financial flows. This company is essentially an indicator of DOGE’s position in the market.
Note that the figures given by Zhu are not entirely accurate. In the second quarter of 2021, crypto traders accounted for 41 percent of Robinhood’s total $ 233 million in revenue. Of these, 62 percent of the amount were commissions from operations with Dogecoin. However, in any case, DOGE brought the platform most of the earnings from cryptocurrencies.
According to sources, in the second quarter of this year, the average daily trade volume with Dogecoin exceeded the billion dollar mark . For comparison: in the same period last year, this figure reached approximately $ 74 million .
Zhu summed up that the Dogecoin brand for many people – even those relatively far from the crypto industry – has become synonymous with successful investments. Altcoin is recognized and mentioned on social networks even more often than, for example, Ethereum. He continues.
If you look at social media like Twitter or Instagram, DOGE is the only coin that one woman talks about to another without any benefit of her own, just because she likes the altcoin itself.
Note that DOGE really often becomes the choice of newcomers in the world of cryptocurrencies. This is facilitated by the reputation of the crypto asset, which, in fact, was primarily created by Elon Musk. Since the coin is heard by many, it turns out to be among the first deals of novice investors.
The presumptive growth of DOGE in the future will certainly be facilitated by the status of cryptocurrencies as an established investment asset among Americans. According to a recent CNBC poll, 11 percent of US citizens who have previously received financial assistance from the state to combat the fallout from the COVID-19 pandemic have invested that money in crypto.
Most of the young Americans who participated in the survey are optimistic about the future prospects for cryptocurrency. At the same time, 60 percent of them indicated that they consider digital assets as a long-term investment. 21 percent of respondents called crypto a short-term investment, another 26 percent said they invest in the crypto market only because of the high hype, Cointelegraph reports.
While most altcoins remain pegged to Bitcoin, this means that the dynamics of BTC price changes greatly affects the rest of the market. Therefore, for the rapid growth of DOGE, predicted by Zhu, the condition of growth, or at least the stability of Bitcoin, must be met. However, the same applies to other altcoins, which sometimes give out much more convincing growth against the background of Dogecoin.
Therefore, we recommend that when choosing an object for investment, be guided solely by your own research. While Su Zhu is a popular figure in the cryptocurrency world, his point of view does not have to be final.