Is Dogecoin Next In Line To Get ETF Approvals?

In the past few years, ETFs for cryptocurrency have emerged as one of the most significant trends. ETFs in different jurisdictions have been approved for Bitcoin and Ethereum, the leading currencies in this domain.

This has prompted speculation as to which cryptocurrency will receive such an endorsement next. Dogecoin stands out as an exceptional digital currency among the many others on the market.

In recent years, Dogecoin has gained substantial traction and developed a loyal following. There are several factors that may impact Dogecoin’s chances of receiving ETF approval, as well as their potential impact on the overall space of cryptocurrency ETFs.

Table of Contents

Origin and Evolution

The dogecoin cryptocurrency was created by software engineers Billy Markus and Jackson Palmer in December 2013. The meme originated as a joke and featured a Shiba Inu dog, inspired by the popular “Doge” meme.

Although Dogecoin’s origins were humorous, it quickly developed a following, largely due to its vibrant and enthusiastic community. By using it as a social media tipping system, it sets itself apart from other cryptocurrencies.

Market Performance and Adoption

There has been volatility in Dogecoin’s market performance, but it has been notable. Elon Musk’s endorsement and widespread social media attention were key factors driving its value surge in early 2021.

By mid-2024, Dogecoin had a market capitalization of $52 million, had a dedicated user base, and was accepted for charitable donations and transactions.

Why Will Memecoins Succeed?

Dogecoin, among other meme coins, has significant potential in the current market cycle, according to Hayes. Federal Reserve and U.S. Treasury monetary policies, which print more money and increase liquidity in the market, are credited with this outcome.

Due to their simplicity and recognizability, meme coins are particularly attractive to newcomers to the crypto space.

“It’s literally the easiest thing to understand for someone who is just beginning to learn about crypto,” Hayes said. “I do not need to know about blockchain, artificial intelligence, cryptography, or cryptography algorithms.”

According to a recent blog post by Hayes, trading Bitcoin would be a good way to deal with recent interest rate cuts by the Bank of Canada and the European Central Bank.

It has been historically true that low-interest rate environments have been favorable for stocks and Bitcoin, which have led to an increase in investment in assets with higher volatility, such as memecoins.

What makes Dogecoin so popular

In recent years, Dogecoin has seen a significant increase in popularity, making it an attractive choice for ETF providers. In the past year, Dogecoin’s value has increased by 136%, and its availability on popular platforms makes it more accessible and appealing to retail investors.

Hayes called it the oldest memecoin. If you’re considering TradFi getting into crypto and they’re putting an ETF on anything they can get their hands on, it’s a high market cap.”

Here are some trends to watch this bull run cycle

Hayes and Pal also discussed other cryptocurrency trends to watch during this cycle.

In his presentation, Pal highlighted Solana as one of the most important parts of his portfolio
According to Hayes, Aptos might surpass Solana within the next 1 to 3 years in Layer-1 blockchain technology.

Cryptocurrency Market Risks

Moreover, Hayes and Pal discussed potential risks associated with the crypto market, especially those associated with large centralized venues controlling significant segments of the market.

In her statement, Pal expressed concern over Deribit’s dominance in the options market. Meanwhile, Hayes highlighted the risks associated with Coinbase, a large Bitcoin exchange-traded fund (ETF), and other banks that maintain large amounts of Bitcoin.

Also Read:

So, that’s all we have for you regarding whether or not Dogecoin is next in line to get ETF approvals. We hope that you find this article helpful. For more info, comment below.