- XRP, regardless of its key restoration to $1.25, stays overshadowed by meme cash like Dogecoin
Dogecoin is a so-called meme coin. It’s a peer-to-peer cryptocurrency derived from Litecoin, whose identify and design are primarily based on the web phenomenon Doge. Dogecoin was developed by Billy Markus, an IBM programmer, and Jackson Palmer, an Adobe programmer. The coin was issued on December 8, 2013. Image: Ɖ; Abbreviation: DOGE
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XRP has been showing a substantial boost in its price since Donald Trump clinched the presidency at the 2024 US election two weeks ago. The upcoming administration’s promise of cryptocurrency-friendly regulatory reforms has been the principal driver for renewed faith in the token.
Reinforcing its price movements was Bitcoin‘s (BTC) series of all-time highs that has revived optimism in the broader crypto market. It also came alongside Ripple’s significant progress in driving institutional adoption for the XRP Ledger (XRPL).
In addition, Ripple’s success in handling its legal hurdles against the outgoing administration’s regulatory watchdogs has considerably helped XRP steer away from the FUD
FUD is an abbreviation for Fear, Uncertainty and Doubt.
” href=”https://blockzeit.com/glossary/fud/” target=”_blank” data-gt-translate-attributes=”[{” attribute=”” tabindex=”0″ role=”link”>FUD (fear, uncertainty, doubt) that has been tarnishing its image.
Meme Coins Eclipsing XRP
According to the technical patterns, XRP could be due to a further climb past $2 up to a possible breach between $6 and $13. So far, the token has done a great job reclaiming the price it lost three years ago with its recent rally to $1.25.
However, it’s evident that Dogecoin (DOGE) has been exhibiting higher trading volume than XRP lately. As of November 20, the dog-themed token had over $10 billion worth of transactions compared to XRP’s $6 billion. Similarly, other meme coins have been taking away a sizeable chunk of market share from more established altcoins.
Appeal of Meme Coins Over XRP
Retail players have been betting heavily on meme coins following Dogecoin’s significant recovery to prices not seen for over two years. This heavily outweighed the institutional interest in Bitcoin and other altcoins with actual utility.
At this rate, it’s clear that most retail investors still favor meme coins like DOGE, Bonk (BONK), and Shiba Inu (SHIB) for several reasons. The sentiment stems from the wild fluctuations inherent to these digital assets, which mean higher returns for people entering the market at the most opportune time.
Moreover, meme coins have a unique appeal that resonates with popular culture and is influenced by community-driven dynamics. A slight reference from key personalities could easily pump their values temporarily (i.e., Elon Musk’s subtle digs at DOGE).
Paying Attention to Retail Buyers
Indeed, XRP was primarily tailored for institutional use, particularly in cross-border transactions. But then again, it can’t be denied that retail buyers hold a major sway in its price dynamics.
To maintain its relevance with the populace and not just with institutions, XRP should employ a multi-pronged strategy targeting the audiences of both sectors. This approach, while challenging, is necessary to cater to the diverse needs of both sectors. It should strengthen its community support while maintaining the delicate balance of leveraging its strengths by continually expanding its partnerships with financial institutions and emphasizing its solid value proposition in cross-border payments.
