According to Zhu, the DOGE brand is four times more well-known than Ethereum in non-crypto circles.
Propelled by the support of Tesla CEO Elon Musk, Dogecoin has had an impressive year, rising from a value of $0.003 last August to trading at $0.27 at the time of writing. Responding to questions about the future of the meme corner’s dramatic price surge, the CEO of fund management firm Three Arrows Capital, Su Zhu, explained his bullish thesis for Dogecoin.
Speaking on an episode of ” The Game Theory of Crypto Podcast ” hosted by crypto researcher Hasu, Zhu said that Dogecoin’s ability to attract the attention of “blue collar” (blue collar worker) investors through its meme coin persona will prove crucial to its future growth.
Historically, DOGE’s price volatility and origin have encouraged sophisticated crypto-currency investors to stay away from crypto-currency. Zhu addressed this issue by asking why a digital asset must be serious to be successful.
Agreeing with Musk’s comments about Dogecoin being the ” people’s crypto“, Zhu pointed out that Doge had four times the brand recognition of Ethereum in non-crypto circles. He added that anyone could own whole amounts of the crypto-currency and that even “ the man who drinks beer can understand it.”
Furthermore, DOGE is the only currency that mainstream investors are advocating for on social media, not because they’re getting paid to do so but because they like the corner, the CEO said, praising the organic promotion of the currency by the Dogecoin community.
He went on to cite data from retail trading app Robinhood to show the extent of Dogecoin’s popularity among investors from the working-class world. Robinhood recently reported that DOGE transactions accounted for 62% of its total crypto revenue in Q2 2021.
” The best way to understand DOGE, I think, is that if you look at Robinhood, which is sort of the most “blue collar” style of crypto investing, DOGE accounts for 60% of their crypto revenue. And crypto makes up 40% of Robinhood’s revenue, so Robinhood is essentially a DOGE proxy,” Zhu explained, adding that ” people want to trade Doge.”
Dogecoin’s upcoming upgrade has only piqued interest around the coin meme, as it should not only solve the scalability issues, but hasussi maximize its base layer transaction rate, leading to faster and cheaper transactions.