Under current market conditions, most of the attention is on bitcoin (BTC), its various forks, and of course XRP. But a little lower on Coin market cap is one coin that deserves more attention, and that’s Dogecoin. While often thought of as a joke, Dogecoin (DOGE) is probably one of the few coins that have a real utility in the market. The real value of any cryptocurrency is not in speculation, but in people buying and selling goods, sending money to their loved ones among others. However, most coins don’t achieve this purpose. A good number of coins are only used for trading on exchanges, even though that is not the core value of any currency.
To better understand this, let’s look at Dogecoin (DOGE) transactions in the past 24-hours. In this period, Dogecoin has moved over $688 million dollars’ worth of value. However, out of this, only about $26 million worth of Doge was used for exchange trading. This means that over 95% of all the Dogecoin’s that have moved in the last 24-hours was used by merchants and other real-world payments purposes. Just to give context on how big of a deal this is, Bitcoin Cash moved $163 million in the past 24-hours.
Of this, $134 million of it went to exchange trading. This means that a significant portion of Bitcoin Cash’s volumes come exchange trading and not usage by merchants, and people actually doing something with it, that isn’t price speculation. You can compare Dogecoin (DOGE) with lots of other coins, and it returns the same results. Dogecoin (DOGE) is being used, as a form of currency for actual value transfer, and that’s the whole essence of any cryptocurrency that has any hopes of getting adopted as a currency.
This has wide ramifications on Dogecoin (DOGE) going into the future. First, it gives it a strong intrinsic value that will grow over time. That’s because the more people use it, the more stable it will become, and act as an anchor to its value. With its strong fundamentals such as fast speeds, low transaction costs, and security, Dogecoin (DOGE) could emerge as the crypto that ends up revolutionizing how people transfer value on the internet, displacing most of the conventional payments method available today. Secondly, this growing intrinsic value of Dogecoin (DOGE) could draw in more institutional interest in DOGE as an investment, and drive up its speculative value as well. Smart money looks for value that runs deeper than hype and speculation, and Dogecoin seems to have it.
With utility supporting its value, Dogecoin (DOGE) will continue to surprise the market when it comes to pull backs and bull rallies. Investors always get surprised when Dogecoin gets listed on a new exchange, or rallies more than the rest of the market. That’s because it is always assumed to be a joke coin. However, in reality, it’s the furthest thing from a joke in this market. It could easily become the future of payments. It would not be surprising if Dogecoin (DOGE) hit $1 in the next decade.