The crypto market is not looking good at the moment, and there is a possibility that this bear market might sustain for some time. The random pump and dumps are also taking away investor confidence in the altcoins market. Under these circumstances, there is a real risk that most altcoins might die off, as money flees to Bitcoin (BTC), and stable coins.
Bitcoin comes off as a safe bet, for its entrenched network, and the fact that it is the only crypto that most non-crypto people know about. As for stable coins, the continued rise of Tether (USDT) speaks volumes about what investors are thinking about the market at this point. However, in spite of all this, one altcoin stands out, in terms of the potential to survive and grow. That altcoin is none other than Dogecoin (DOGE).
Dogecoin may be easily dismissed as a joke, but it is one altcoin that has staying power. One thing that gives Dogecoin staying power is its use for commercial purposes. While most altcoins are used exclusively for speculative trading on exchanges, Dogecoin is one of the few that are used for actual transactions, i.e. people buying and selling stuff online. In fact, applying real-world usage as a ranking metric, Dogecoin (DOGE) ranks in the top 5. But why does this matter? Well, the whole point of payment cryptos is to be used in buying and selling stuff, not just speculation. By being used for real-world transactions, Dogecoin is essentially money, and this makes it valuable. As its use for this purpose grows, Dogecoin’s market value will grow. This also gives it staying power in a market even in a prolonged bear market. Once the bear market comes to an end, and crypto goes more mainstream, cryptos that already have real-world usage will only get better. This makes Dogecoin’s long-term prospects great, compared to other altcoins.
Then there is the fact that Dogecoin was never an ICO. In the past, investors didn’t pay too much attention to this aspect of crypto. However, with most tokens down by over 90%, and with zero prospects of coming back, people are appreciating it more and more. The problem with ICO cryptos is that, their valuations are arbitrary. It is the founding team that determines value, hence the massive collapse in valuations after the hype died. Such projects are also heavily reliant on their founding teams for development, and if the market stays depressed, they are likely to run out of money. This makes Dogecoin (a decentralized minable crypto) a good bet going into the future. One can be sure that Dogecoin is not going anywhere, no matter how long the crypto bear lasts.
On the basis of the above factors, Dogecoin (DOGE) comes across as a safe bet, besides Bitcoin (BTC) and stable coins. It may appear like a joke, but it’s a very serious coin, with lots of potential.