Cryptocurrency markets are highly volatile. One day you are up by 15% and the next day down by 20%. To combat this, a new breed of tokens knowns as “Stablecoins” were created. Stable coins are cryptocurrencies who’s value remains constant. USDT was the first such stable coin, which has a constant value of 1 USDT = $1.
Stable coins are good to hold in the bear market, but miss out on the bull market. Let’s take for example, cryptocurrency markets suddenly shoot up by 20% (it happens a lot). As an investor, you would most likely miss out on the bull market as your USDT value will stay the same. Sure you can argue, that trading bots would easily convert stable coin to the respective cryptocurrency, but in general, bots are slow. They usually enter when the market during the middle of an uptrend.
But what if I tell you there is a cryptocurrency, that is relatively stable in a bear market (has tested the toughest waters) and also reaps the benefits of a sudden bull run. Enter internet’s second favorite cryptocurrency (after Bitcoin of course) – Dogecoin.
Created as a joke in 2014, the token has become a serious contender in the cryptocurrency market. If past data has shown something, it is that Dogecoins value remains relatively stable in the range of $240-$270 million. And the reason is that most people don’t want to trade Dogecoin but rather tip content creators (after all this is what it was created for). And, this is a very important factor.
Due to the above reason, Dogecoin community members aren’t affected by the price of the cryptocurrency, and Dogecoin remains relatively stable. But since the price of Dogecoin is not stable, Dogecoin reaps the benefits of a sudden increase in the price.
Investors have already started to notice this pattern around Dogecoin. More and more investors are testing the stability of Dogecoin, a fact evident by looking at the number of people joining the carefree community of Dogecoin. How long will this pattern is yet to be seen, but in the short term Dogecoin looks like a really great bet.
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