Under current market conditions, the last coin you would expect to be in the money is Dogecoin (DOGE). After all, it’s a joke coin, right? But that seems not to be the case. Time and again, Dogecoin (DOGE) has proven that it is a serious coin, a stable worthwhile investment. In the past, Dogecoin (DOGE) has outperformed the market beating all expectations to hit a high of $0.06. Today, is no different. As the rest of the market drops, Dogecoin (DOGE) is up by about 4%. Going by this trend, it is clear that Dogecoin (DOGE) is emerging as a stable investment, in a largely unstable market.
The implications of Dogecoin’s market stability will be wide and varied. The first one is that it will draw in institutional money going into the future. That’s because in a market as volatile as crypto, institutional money will flow into cryptos that show the highest signs of stability. There is a good reason why bitcoin (BTC) has attracted the highest institutional interest so far. It’s because of all the cryptos in the market, it is the most stable.
As such, if Dogecoin (DOGE) continues maintaining this stable growth, it’s pretty much guaranteed to draw in institutional money going into 2019. Pointers to this are already there, since Dogecoin (DOGE) is one of the coins that Coinbase is offering institutional custodial services for. It could be an indicator that there could be high demand for Dogecoin in institutional circles.
Secondly, Dogecoin’s growing stability could lead to an increase in the number of merchants accepting Dogecoin (DOGE). Crypto’s long-term growth is to a large extent tied to merchant adoption. Cryptos that have the highest rate of adoption stand to grow the most. In essence, Dogecoin’s long-term growth potential through adoption is getting better. Dogecoin already has some of the highest transaction volumes in crypto.
As that number increases, the value of Dogecoin (DOGE) in the market will rise significantly. To understand the importance of price stability, one just needs to look at bitcoin in 2017 when some merchants dropped it, due to its price volatility. In essence, Dogecoin’s price stability could see it get adopted by some of the biggest merchants out there.
When you put these factors come together, it becomes clear that Dogecoin could be headed for some good times ahead. That’s because as its price rises and more people take an interest in it, Dogecoin will create a self-sustaining loop that will serve to drive up its price. It would not be surprising if in the long-run, Dogecoin (DOGE) becomes accepted as a global currency. That’s because on top of its core features like speed, and decentralization, it also an inflationary aspect to it. This allows it to factor in economic growth, something that is not possible with deflationary currencies. That’s a factor that places it in a unique position to achieve parity with the dollar at some point in the future. Dogecoin (DOGE) could emerge as the surprise crypto winner, one that no one ever anticipated.