Cryptocurrency trading is in full swing. The price of Bitcoin has surged since election night and briefly flirted with $100,000. Investors are optimistic about a better regulatory environment under President-elect Donald Trump, as well as a lower interest rate environment, in which crypto has already performed well.
However, Bitcoin is not the only cryptocurrency to have made gains. It is not uncommon for others cryptocurrencies follow the example of Bitcoin because it is an indicator for the industry. Dogecoin (CRYPTO:DOGE) And XRP (CRYPTO:XRP) They did just that, and both surged following the election, outperforming Bitcoin.
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Now that the industry is starting to shift into high gear, what is the best buy?
Software engineers Billy Markus and Jackson Palmer created Dogecoin as a joke in the early days of crypto in 2013. They based the token around a meme of a Shiba Inu dog.
But to their surprise, their joke became an instant success: it involved creating a currency out of nothing. Dogecoin really gained widespread notoriety during the meme stock and crypto frenzy at the height of the pandemic, when celebrities and tech gurus like Elon Musk adopted and even purchased the token.
Many believe that Dogecoin has no real use other than for blockchain payments, which almost all cryptocurrencies offer. The token has an unlimited supply, although there is a fixed reward of 10,000 Doge for each new block. One of Bitcoin’s biggest selling points is its limited supply, which many believe makes it a potential hedge against inflation.
One thing Dogecoin has undeniably done well is take advantage of the ability to build a community and go viral. This is probably the main reason why the token has a market capitalization of over $59 billion and is the seventh largest cryptocurrency in the world. Celebrities like Musk and Mark Cuban have adopted the token and enabled Doge payments for their various businesses.
Having Musk and his more than 206 million X followers on board is a powerful marketing tool. When Musk tweets something about Dogecoin on X, it usually becomes a catalyst for the token.
While all cryptocurrencies can theoretically make cross-border payments, the company Ripple in particular designed XRP for this use case. XRP can process transactions in three to five seconds and settle more than 1,500 transactions per second, making it ideal for commercial use. Additionally, Ripple, the company behind XRP, has pre-mined 100 billion tokens and uses a consensus protocol instead of the mining process to validate transactions. This makes the token more energy efficient and requires fewer fees for each transaction.