Dogecoin (DOGE) ranks 3rd in terms of active addresses, after Bitcoin (BTC) and Ethereum (ETH). Essentially, this means that in terms of real use, Dogecoin is the 3rd largest cryptocurrency in the market. It is a signal to its high market penetration, and for an investor, this is a positive pointer to the future of Dogecoin in the cryptocurrency market. That’s because, for cryptocurrencies to work as currencies, they need to gain adoption. It’s the only way for them to have an element of stability. This may explain why Dogecoin has been relatively stable for the better part of 2018. Its high number of active addesses has even bigger implications in the future.
One of them is that its network stability will draw in more merchants going into 2019. That’s because, part of the reason why merchants have been slow to adopt cryptocurrencies is due to their heavy volatiility.
However, as crypto adoption grows, this will change over time, and crypto will see more mainstream adoption. For Dogecoin (DOGE), which already has a high network adoption, this is a big deal, and could see its usage pick up over time. This makes it a high potential crypto as adoption takes center stage as a key driver to Dogecoin (DOGE)’s core value.
On top of that, by having a high network usage, Dogecoin (DOGE) stands in a good position to benefit from crypto FOMO, once bullish sentiment takes root in the market. That’s because, once bullish sentiment returns, investors will be mostly rush into bitcoin (BTC) first, then into cryptos that have shown an element of stability in the bear market.
Altcoins with a high level of stability singnal strength, and this strength is a good way to draw in investors in a bull market. In essence, in terms of real demand, Dogecoin (DOGE) stands in a good position to grow faster than most altcoins if this pump indeed turns out to be the beginning of the crypto bull market.
Besides its widespread usage, Dogecoin (DOGE) has strong tech fundamentals backing it up. Some of the fundamentals backing Dogecoin (DOGE) include fast speeds, security, and the fact that it is best suited for making micro-transactions. The ability to efficiently make micro-transactions, for instance, will be a big source of value for Dogecoin (DOGE) in the long-run. That’s because, tipping is big business, and its growing. Social media sites are slowing taking it up as an incentive mechanims for content creators. As this market grows, cryptos like Dogecoin (DOGE) will see a significant increase in usage, and by extension, value.
Based on the above strengths, Dogocoin (DOGE) has a realistic chance of rising into the top 10 in the future. It is one of the most used cryptos, after Bitcoin and Ethereum and has solid tech to back it up. Bitcoin is at the top for its first mover advantage, Etheruem ranks highly due to its dominance in the ICO space, and Dogecoin (DOGE) is there for its merchant adoption. This speaks volumes about its future place in crypto space, once crypto goes truly mainstream.