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Dogecoin (DOGE) currently has a market value of $19.8 billion and is trading at $0.145, while Ripple’s XRP is trading at $0.5 with a market value of $27 billion. A legal expert suggested that the case between the U.S. Securities and Exchange Commission (SEC) and Ripple could be resolved by summer, potentially increasing XRP’s market value. However, some experts expect Dogecoin to surpass XRP’s market value this year, listing seven reasons for this. Here’s how experts believe the biggest memecoin will outvalue the popular altcoin.
Elon Musk’s Influence
Elon Musk‘s endorsement and support of Dogecoin have significantly increased the memecoin‘s credibility and visibility. Musk’s public support historically led to significant price increases for DOGE, which traded at $0.003 in April 2019 and rose by 4,600% in five years.
In contrast, Ripple’s XRP lacks a high-profile figure like Musk to elevate its profile.
Large Investor Inflows
On May 4, Dogecoin saw a massive 582% increase in large investor inflows within 24 hours. This surge contrasts with XRP, which saw significant whale movements to exchanges, indicating potential bearish trends.
Such inflows for Dogecoin indicate strong market confidence and potential price increases.
Tesla Starts Accepting DOGE for Payments
Tesla’s decision to accept DOGE for car purchases marked a significant milestone, causing a 21% price increase for DOGE. Adoption by a major company highlights the memecoin’s growing utility and market acceptance.
On the other hand, Ripple’s XRP may take time to form influential partnerships, especially with foreign banks and governments.
The Power of Memes
Dogecoin’s strong meme culture continues to boost its popularity, especially among tech-savvy investors. Memecoins led by Dogecoin have achieved significant gains. In contrast, XRP’s more traditional financial image lacks the same cultural appeal, potentially hindering short-term market momentum.
Strong Community and Ecosystem
Dogecoin’s ecosystem, supported by other successful memecoins like Shiba Inu (SHIB) and Floki (FLOKI), demonstrates strong community support and collaboration. The creation of the MarketVector Meme Coin Index, which includes Dogecoin, underscores its importance in the memecoin sector.
While XRP has a relatively strong community, it lacks the robust support seen with Dogecoin.
Stability from Proof of Work Consensus Mechanism
Dogecoin’s Proof of Work (PoW) consensus mechanism provides stability by preventing inflation and attracting investors who value mining-based security. PoW’s integration with energy industries also appeals to those seeking alternatives to traditional financial systems. This aspect of Dogecoin’s network supports its long-term value retention. XRP lacks such a consensus mechanism.
Potential Fed Rate Cut
A potential rate cut by the Fed this year could positively impact risky assets like Dogecoin. Such economic developments typically raise asset prices, and significant spending by Washington could increase demand for inflation-resistant assets like Dogecoin.
