According to data from the brokerage firm eToro, Dogecoin holders vaulted higher than Bitcoin and Ether in the second quarter of the year. The two major cryptocurrencies were overtaken by Dogecoin in market capitalization and claimed second place for the quarter in question. Dogecoin now claims second place, ranking behind Cardano which has maintained its top position in both quarters.
Cardano’s gains have been more consistent which attributes to why they hold the top position, however, Dogecoin’s sudden rise was so strong that they were able to go beyond predictions that were once seen as a longshot at best. Even though the market crash in May has brought the price down at one point Dogecoin went from being value at a fraction of a cent all the way up to half a dollar!
Bitcoin tumbled down to the fifth spot in the first quarter of the year. Meanwhile, Ether maintained its position at the third spot in the first quarter before falling to fourth place in the second quarter.
eToro only recently added Dogecoin to its trading platform in May this year. According to the CEO of eToro, Yoni Assia, he stated the decision to list Dogecoin on the trading platform did not seem sensible at first due to its background.
Dogecoin started as a joke in 2013, though recently in 2021 the meme-inspired cryptocurrency is on par with major cryptocurrencies in the industry. Dogecoin has encountered a blistering rally and has been endorsed by well-known supporters including Elon Musk and Mark Cuban.
According to the trading platform Robinhood, Dogecoin generated almost $30 million in revenue from customers trading in the meme currency in the first quarter of 2021.
The rise of altcoins is closely documented as the Bitcoin market share drop under 50%. The CEO of the fintech firm PolySign, Jack McDonald, has stated that altcoins represent an opportunity to diversify one’s exposure. Buying and holding altcoins represent a greater trust in the ecosystem, says the founder of Dbilia.com, Everett Kohl.
Not everyone is on board with altcoins including Eloisa Marchesoni, co-founder and COO of Blockchain Consulting. Marchesoni stated that investing in altcoins comes with more risks such as stagnant capital that may not regain its price action.