Bitcoin (BTC) seems to be ignoring naysayers and continues to edge higher. Ever since it bottomed out at $3100, it has been pushing higher and is now back above $6k on some exchanges. In fact, at the time of writing, it was trading at $6100 on Bitfinex. However, most altcoins don’t seem to have caught up with this momentum. For instance today, Bitcoin is up by over 6%, while most altcoins are still sluggishly averaging 1- 2% in gains. Dogecoin (DOGE) is one of the few that seem to be moving in tandem with Bitcoin (BTC). An interesting scenario for a supposed “joke coin.”
Dogecoin (DOGE) could have got some momentum from the May 1st announcement by Coinbase that it would be adding Dogecoin (DOGE) to its wallet. The announcement meant that investors can now store their Doge coins in the Coinbase wallet. While it’s not much of a deal at this point, it is still significant for the sentimental value of Dogecoin (DOGE). That’s because Dogecoin (DOGE) is just one of a few other cryptos that can be stored on this wallet. As such, this will help create the impression that Dogecoin is actually a serious investment and help drive up its image in crypto space. For years, Dogecoin was perceived as a joke coin, but this is slowly changing. It’s a change supported by this move by Coinbase, Robinhood, and the fact that respected figures like Elon Musk actually recognize and like Doge. With the improved image that Doge has at this point, it is not surprising that it is gaining bullish momentum as Bitcoin (BTC) slowly forms a clearly visible uptrend.
The fact that it is extremely cheap when compared to most altcoins could also be a key driver to investors throwing money at it, as the perception that the bull market is back develops. After all, in a bull rally similar to that of 2017, altcoins have a higher potential of giving superior returns as compared to Bitcoin.
Besides this positive sentiment, Dogecoin is also one of the most used cryptocurrencies by merchants. It ranks highly in merchant adoption, up there with the likes of Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). In essence, with confidence slowly returning to the crypto market, more merchants are likely to start using Dogecoin (DOGE) for payments. This will further support its value as bulls take control of the market.
With such positive fundamentals surrounding it, Dogecoin (DOGE) has a good chance of leading the altcoin rally if Bitcoin sustains its current upwards momentum. As it continues to give superior gains relative to most altcoins, more investors will buy into it, and the joke tag will completely disappear.
It won’t be surprising if Dogecoin emerges as one of the altcoins that make investors wealthy in the next Bull Run. It has the fundamentals and a friendly and welcoming community. It’s a community that is always ready to spread the word about the multiple advantages of Dogecoin. It’s the one crypto that doubles up as an investment and a practical digital currency, and that’s powerful.