If you throw a glance on cryptocurrency market analysis tools, like Messari’s OnchainFX first thing that stares in your face is discrepancy in numbers of real vs speculative usage of cryptocoins.
By real usage we mean actual transactions where actual coins are sent on the blockchain and not IOUs moved on centralized exchange servers.
One currency, created as joke, is dwarfing all the others, “serious” competitors in this aspect.
Dogecoin trails only Bitcoin and Ethereum in active addresses in the last 24 hours. Bitcoin had 536k, Ethereum had 235k and Dogecoin was third with 72k active addresses. That is more than LTC, which was fourth and way more than “the real bitcoin” BCash that had only 17k active addresses in the last day.
What raises eyebrows even more is the disparity when we check trading volumes (on exchanges) vs volumes moves on blockchain, expressed in USD. All cryptocurrencies have their volumes completely dominated by IOU trades on exchanges in comparison to onchain volumes. All but Dogecoin.
Bitcoin had more than $9 billion traded on exchanges and only $1.8 billion was actually moved on blockchain. That is actually a pretty good score when juxtapositioned with other coins.
Dogecoin is absolutely dominating this metric: DOGE had incredible $264 million of onchain transactions and only $24 million of trading volume. Meaning, people actually use Dogecoin’s blockchain to move “physical” tokens instead of just speculating on exchanges.
One important note to add: when you look at active addresses, around 72k and onchain volume of $264 million, you easily come to conclusion that Dogecoin’s usage is absolutely organic. It is not, like in the case of BCH, where 17k addresses moved $1.6 billion worth of tokens (back and forth to fake activity and bait people to FOMO into buying it).
Use case emerging
Biggest ace in the sleeve for Doge future is its current most frequent application as a tipping currency. With websites like Litebit, Anycoin, Suchlist, keys4coins, dogegifts, clockworkcrypto and an official Reddit tip bot (there is talk of a Telegram tip bot as well), more and more ways of spending your DOGE are popping up by the day.
Dogecoin is very much in line with the United States’ “tip culture”, and with the rise of reward culture on the Internet in the world, Dogecoin will also be widely used. Compared to expensive Bitcoin, the threshold for Dogecoin is even lower, and it’s much cuter. Dogecoin could become the most popular “tip cryptocurrency” in the U.S. Internet.
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