A few days ago, Dogecoin (DOGE) was added by Salt, as part of the cryptos that can be accepted as collateral for loans on their platform. While the excitement around this announcement has died down, it is one of the announcements that have far-reaching implications to the future of Dogecoin (DOGE).
First, it creates the impression that Dogecoin (DOGE) is a fundamentally strong coin, one that can be trusted as collateral for loans. There are lots of other coins in the top 20 that salt would have chosen, but it went specifically for Dogecoin (DOGE). This validation of Dogecoin as a strong cryptocurrency worthy of being used as collateral will draw in retail investors who would, otherwise, have passed up on Dogecoin as an investment. As such investors come in, they will add to the overall volumes of Dogecoin (DOGE) in the long-run. This will play a huge role in pushing it up in the long-run. Trust in Dogecoin as an investment is critical to its long-term growth, because it will also draw in institutional money. Institutional money is an important part to crypto’s long-term growth, and Dogecoin (DOGE), with the trust that platforms like Salt are bringing, will take a significant portion of this money.
Secondly, it adds to the wow factor of Dogecoin (DOGE). In the last couple of months, Dogecoin (DOGE) has pulled a number of surprises in the market. It was added up to Robinhood, contrary to the expectations of money. It then went on a month’s long Bull Run, even as the rest of the rest of the market dropped. These and many others surprises have created a wow factor around Dogecoin (DOGE). The introduction of Doge to salt’s lending platform adds to the wow factor around Dogecoin (DOGE). Over time, this will start drawing in more investors into Dogecoin, as they anticipate the next surprise that Dogecoin will bring their way. This could at some point create FOMO that could trigger a massive Dogecoin (DOGE) rally, unlike any other seen before.
Thirdly, now that Dogecoin (DOGE) can be used as collateral on the salt platform, it will draw in more people to buy Dogecoin (DOGE), and use it as security for borrowing. This will drive up demand for Dogecoin going into the future, and play a role in pushing up its price in the long-haul. Even before the salt announcement, Dogecoin had some of the highest transactions levels in crypto space. As such, the increased demand for Dogecoin (DOGE) will simply make it a more stable crypto, one that merchants can trust for every payments.
In essence, Salt’s announcement could actually be a trigger to buy Dogecoin with a long-term view. It goes to show that there is a real demand for Dogecoin (DOGE). This makes it a viable hold going into the future. If its price stabilizes over time, it could even emerge as an everyday payment, in a scenario where crypto takes over. It is definitely a crypto worth looking into, as an investment.