Coinbase recently announced a list of cryptos they are planning to list, and it didn’t have Dogecoin (DOGE) in it. Though, they will possibly list it later, since they plan to list 90% of all the coins in the top 10.However, while the big exchanges are slow in listing Doge, it is the cryptothat could potentially serve them best as a base currency, alongside Bitcoin(BTC).
The key to a good base currency is confirmation times, and costs. An efficient base currency needs to be fast, have low transaction costs, and be secure. Bitcoin may not be fast, or cheap but it has first-mover advantage. However, beyond Bitcoin (BTC), any other crypto angling to be used as a base currency would need to have these attributes. Dogecoin comes up as one of the cryptos that would work perfectly as a base currency, and will most likely takethis role in the future.
Dogecoin is one of the fastest cryptos in the market. Transactions on Dogecoin (DOGE) are almost instantaneous. This makes it a perfect tool for exchanges looking to draw in more users with speed as a selling point. In a market as volatile as crypto, investors love the chance to jump on to high potential opportunities without having to worry about missing out, due to slow confirmation times. As such, any exchange that would choose to go with Dogecoin (DOGE) as a base currency would have a significant edge in the market. The same goes for its cost. Dogecoin (DOGE) is almost free to transact in, which makes it a perfect crypto for use as a base on exchanges. That’s because, it would cut on the transactional costs of their clients, and as with every business, a happy clientele makes for a happy exchange.
Over and above the issue of costs and speed, Dogecoin (DOGE) is one of the most liquid cryptocurrencies in the market. This is probably the biggest aspects to Dogecoin that makes it perfectly suited for use as a base currency on exchanges.
Liquidity is important because it means, Dogecoin can be used to move very high amounts of value, without causing instability in price. In an illiquid crypto, large volume purchases cause prices to spike, while sell orders cause prices to crash. Dogecoin doesn’thave these pitfalls. Proof to this is in its price movements all through the year. While most altcoins have been extremely volatile, Dogecoin (DOGE) is one of the altcoins that have been relatively stable. Yes, it has lost value, but it has been a smooth, predictable movement, making it easy to work with.
As the crypto market matures and becomes more efficient, high-value cryptos will slowly take their rightful positions at the top. In a few years, Dogecoin (DOGE) could possibly be a top coin that is used by a majority of exchanges as their base currency.Like fine wine, Doge keeps getting better over time.