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The rapid rise of Dogecoin (DOGE) to the fourth-largest cryptocurrency by market capitalisation has prompted others to dismiss the meme coin as a passing fad, something that is here today but will be gone tomorrow.
However, even though Dogecoin disappears tomorrow, its permanent effect on the cryptocurrency room goes way beyond what yo-yos and Tamagotchis given to lonely kids in the pre-internet days.
Nick Spanos, founder of the Bitcoin Centre NYC and the Zap Protocol, thinks Dogecoin is a fad — but a valuable one.
“DOGE is a fad within a growing movement that is here to stay,” said Spanos, adding that the buzz generated by Elon Musk’s presence on Saturday Night Live, which culminated in a 38% price drop, would eventually bring further attention to legitimate crypto ventures.
The perceived lack of utility of Dogecoin stems from its uneven distribution of coin supply, inflationary coin demand, and general lack of growth after the early founders packed up and left.
But that isn’t an excuse to dismiss the utility Dogecoin brings to the table, according to Spanos, who cited the huge spike in interest Dogecoin has already brought to the crypto space:
“DOGE is a powerful marketing tool, driving attention and adoption of crypto and decentralization as a concept. And in that respect, it is invaluable.”
Spanos decried the “extortionist fees, inflation, and financial exclusion” routinely perpetrated by large banks and governments, adding that any ill-will directed at Dogecoin should be directed at the aforementioned institutions.
“I expect many people to cash in on their DOGE profits in the coming days, which will likely boost the wider crypto market because a lot of this money will flow into other altcoins with strong potential rather than being converted into fiat money,” said Spanos.
Dogecoin rebounded early Monday morning after losing 38% of its worth when the coin price plummeted from $0.72 to $0.44 over the weekend. The coin’s value increased by 34% in a matter of hours, increasing from $0.44 to $0.59.
According to the most recent Google Trends results, search interest in Dogecoin has surpassed that of Bitcoin for the first time in history.