Two week after the flash crash of the crypto market, major cryptos had since recovered. The market has certainly cooled down a bit, and investors are now closely watching Bitcoin, Ethereum, and Dogecoin.
Bitcoin recovered from its low of $47,000 to $55,000. Bitcoin seems to be in a period of consolidation again, and it needs to crack $56,000 before making its way back to $60,000. Even so, Bitcoin has risen over 80% this year, thanks to the boost of growing adoption from mainstream investors.
Ethereum set several new records in April and its new ATH is $3,527. It has gained over 300% in 2021 so far. Moreover, Ethereum shows signs of decoupling from Bitcoin. ETH has broken out against the Bitcoin pair, adding technical momentum to its rallies.
As for Dogecoin, although it saw a 40% sell-off in the past few days, it is still up more than 7000% since January. This means that if you bought $1,000 worth of Dogecoin on Jan.1, you would be sitting on more than $70,000 now.
What is Dogecoin
Dogecoin was invented partially as a “joke” for crypto enthusiasts in late 2013, with a popular meme of a Shiba Inu dog as its logo. Dogecoin is a cryptocurrency, but unlike Bitcoin and Ether, it doesn’t have a lifetime cap on the number of Dogecoins that can be mined or a burning system, making it highly inflationary.
Dogecoin supporters have spent years raising its profile, but it was not until the Gamestop saga that it became famous among the public. Later, Tesla CEO Elon Musk promoted it on his Twitter several times, each time taking the price of Dogecoin higher.
Bitcoin and Ethereum Remain the Better Buy
Dogecoin’s price surged 20% on Apr 29 following another tweet from Elon Musk. But people are starting to worry about the bubble bursting.
Why? The development of Bitcoin and major altcoins reveals to us some of the ingredients of success. The first one is functionality. Although Dogecoin payment is relatively faster than BTC and ETH, it falls short of the use cases of Bitcoin and Ethereum. For instance, Paypal and Visa have offered Bitcoin as a payment option and Ethereum can be used to facilitate smart contracts and DeFi. Functionality leads to institutional investor interest. Funds from institutional investors and even the governments are pouring into Bitcoin and Ethereum. They are not so much as buying the recent rallies of cryptos as the future they promise.
Besides, although BTC and ETH don’t have rallies as crazy as Dogecoin’s, they have multiplied in value since 2020. If you are looking to gain exposure to crypto and invest in the long term, Bitcoin and Ethereum are the ones for you.
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