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A number of cryptocurrencies have generated stellar returns for traders since March 2020. Proper now, these digital tokens are seen instead asset class, attracting institutional investments at an enviable tempo. Whereas Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH) are the 2 hottest cryptocurrencies on the planet, there are roughly 13,000 different tokens in circulation.
Right here, we’ll check out two different blockchain networks, Ripple (CRYPTO:XRP) and Dogecoin (CRYPTO:DOGE), to see which is a greater guess at present valuations.
Dogecoin has a market cap of US$22.5 billion
Valued at a market cap of US$22.5 billion, Dogecoin is presently the Twelfth-largest cryptocurrency on the planet. The DOGE token is priced at $0.17 and has gained 2,900% in 2021. Dogecoin is a well-liked digital forex and has gained a stellar 37,000% since its launch in 2013. In truth, the DOGE token rose by a staggering 27,000% between November final 12 months and Could 2021. Regardless of these astonishing good points, Dogecoin can also be down 70% from file highs, permitting you to purchase the dip.
A key driver for Dogecoin’s rising costs was the help from famous personalities together with Elon Musk and Mark Cuban. Musk can also be known as “Dogefather” and confirmed he might be working with the builders of the cryptocurrency to boost its utility.
Over 2,000 retailers together with AMC Leisure settle for the DOGE token as a type of fee. It’s also possible to purchase Tesla merchandise with the cryptocurrency.
However traders ought to perceive that regardless of its reputation, Dogecoin lacks a aggressive edge in comparison with peer networks equivalent to Ethereum and Solana (CRYPTO:SOL), the place you’ll be able to create and execute good contracts. Whereas Dogecoin’s transaction charges are decrease in comparison with Bitcoin and Ethereum, it’s nonetheless larger in comparison with a number of different networks.
There are near 133 billion DOGE tokens in circulation, and this quantity will improve by 5 billion annually, making it an inflationary asset by nature. Additional, 43% of the entire variety of DOGE tokens are held by 10 wallets, permitting them to simply affect the costs of the cryptocurrency.
Ripple has a market cap of US$39 billion
Ripple is the eighth-largest cryptocurrency, valued at a market cap of US$39.3 billion. It’s the only enterprise blockchain company, and its merchandise are utilized by prospects in additional than 55 international locations. The Ripple international community additionally gives its consumer base with entry to various liquidity options, as they will leverage functionalities of the XRP ledger to boost funds companies.
The XRP token has gained 250% in 2021, outpacing Bitcoin however considerably decrease in comparison with a number of different tokens.
Final 12 months, the SEC investigated Ripple Labs after the latter’s executives allegedly raised $1.3 billion from the sale of the XRP token as an unregistered security. However Ripple argues that XRP is a digital asset just like the U.S. greenback or euro and can’t be seen as a safety. Nonetheless, following the investigation, a number of crypto exchanges have halted the buying and selling of the XRP token.
If the investigation involves an finish in 2022, the XRP token ought to achieve important momentum within the following months.
