Dogecoin (DOGE) may have been a joke, but it has “remarkably strong foundations and powerful forces supporting its rise,” according to a report titled “Dogecoin: The Honest Shitcoin” by Galaxy Digital Research.
Alex Thorne, head of corporate research at Galaxy, uses a set of metrics to compare the cryptocurrency joke to Bitcoin (BTC) – the leader of the cryptocurrency package in terms of market capitalization to make his case.
Doge in numbers: The Galaxy Digital report points to increased consumer acceptance through the current bull at DOGE. Thorne noted that there are nearly 3.6 million addresses containing any amount of cryptocurrency. He noted that the “huge”
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“This shows a significant transfer of coins from older holders into the hands of newer entrants.”
The number of transactions “has usually increased”, according to Thorne, and he notes a breakthrough in the chain, coinciding with recent pricing.
The analyst pointed to the merger of DOGE yield with Litecoin (LTC) and the fact that miners now receive more revenue from DOGE than from LTC.
LTC-DOGE Combined Extraction Revenue, Courtesy, Galaxy Digital Research
However, Thorne also said that the profitability of DOGE digging has also led to a sharp increase in the cost of mining equipment. He writes that the price of Bitmain Antiminer L3 has risen from 83.26 to 547.71 dollars since the beginning of the year.
DOGE under the hood: The report notes the lack of activity in the 2017 Dogecoin GitHub repository, which, according to Torn, is “a lack of effort to develop the project.” He also pointed out that most of DOGE’s coin nodes are not fully synchronized with the network.
According to Thorne, only 26.8% of DOGE coin assemblies are fully synchronized with the network. By comparison, 44% of bitcoin nodes are fully synchronized.
Dogecoin and Bitcoin nodes according to Galaxy Digital Research
Thorne argues that the small number of nodes and the lack of fully synchronized nodes make it difficult to effectively connect the new modes and synchronize them with the Dogecoin blockchain.
See also: Dogecoin Creator says the development of meme coins has kept pace with bitcoins
From memes and digital gold: Comparing DOGE with BTC, Thorne pointed out several shortcomings that affect the cryptocurrency of the meme. These include the lack of a stable market infrastructure and the lack of a “stable ecosystem” of portfolio decisions.
Thorne writes that the number of addresses holding BTC exceeds DOGE by “more than an order of magnitude”.
The analyst said that DOGE has no supply limit and its current annual inflation is “significantly higher” than BTC.
Active Dogecoin against bitcoin addresses, courtesy of: Galaxy Digital Research
Another problem highlighted by the writer was the concentrated offer of DOGE, which he said was “strongly inclined towards larger owners”.
BTC has a number of other advantages, such as a significant advantage in the number of transactions and the value of the daily transfer and faster settlement of transactions, although the DOGE network has shorter block times.
Thorn also claims in the report that a 51% attack on Dogecoin will be relatively shallower than Bitcoin and will lead to a permanent loss of funds, while in the case of Bitcoin recipients “goals will eventually be made”.
Long live DOGE: Thorne outlined the case of DOGE’s survival, noting that it is the best-performing major digital asset to date, along with expanding the ownership base and increasing settlement.
The analyst also raised the profitability of digging and the fact that Elon Musk, CEO of Tesla Inc. (NASDAQ: TSLA), has received the title of “CEO of Dogecoin” from the community.
See also: Dogecoin sets another record just under 45 cents amid speculation by Elon Musk-SNL
Calling it an “admiration project” capable of garnering considerable support, Thorne praised everyone for the coin’s honesty and said, “Dogecoin longevity is guaranteed as long as a truism remains: people love a good joke.”
Price action: DOGE was trading 39.04% higher at $ 0.58 at the time of the press, while BTC was trading 1.16% lower at $ 55,143.63.
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