Parody cryptocurrency Dogecoin seems to be gaining wide adoption as the crypto market surges.
Atomic Swaps Available On DogeDEX
In an announcement made on Wednesday, blockchain as a service (BaaS) solutions provider Komodo said its Doge decentralized exchange (DogeDEX) platform launched March 1 and has been received enthusiastically by Doge enthusiasts.
According to the company, the decentralized platform will enable peer-to-peer exchanges, or “atomic swaps” of the meme-based cryptocurrency. The service will be powered by its AtomicDEX engine for both desktop and mobile apps.
Atomic swaps enable the transfer of crypto-assets using smart contracts. Komodo also said its development team is incorporating fiat-on-ramps in the coming months, which will enable crypto purchases on the decentralized platform.
The Shiba Inu, the mascot representative of the Dogecoin, has become something of a fan favorite. Carving its niche and surviving on celebrity endorsements, Dogecoin has made a tear and gained a phenomenal 2,440% in the last 12 months or so.
One of the crypto-assets avid admirers is Tesla Inc.’s owner Elon Musk. His continued promotion has seen the once disregarded digital asset come into the limelight, and many popular figures have joined the DOGE train.
One of such is Gene Simmons of American rock band KISS fame. He has been joined by popular rap icon Snoop Dogg who has used his reputation to get a good thing going for the digital assets.
Dallas Mavericks billionaire owner Mark Cuban is the latest addition in a long list of admirers who have vocally supported the wide adoption of Doge.
Speaking on the decision, Cuban noted that his basketball team had made 20,000 Dogecoins sales, and he sees the digital asset hitting a price point of $1 soon.
Breaking Through The Hype
Despite all the relative fanfare surrounding DOGE, crypto experts believe that the virtual currency lacks enough use cases to make any significant surge into the top ten brackets. According to them, DOGE’s narrative of being a joke currency needs to erode if it wants to stand a chance in a fiercely competitive crypto market.
Kadan Stadelmann, chief technology officer at Komodo, an open-source cryptocurrency platform and blockchain solutions provider, said that DOGE reaching $1 is nigh on impossible unless it hits Bitcoin-level-buy-ins in the nearest future.
According to Stadelmann, the relative ease of minting Doge tokens is a concern. Stadelmann drew attention to the fact that 10,000 tokens per minute, 14.4 million per day, and 5.2 billion per year of Dogecoins were many.
The massive roll-out of the coin could lead to inflation in the long-term, making a mockery of what cryptocurrencies like Bitcoin came to solve through its metered supply cap.
Johnny Lyu, CEO of cryptocurrency platform KuCoin, feels otherwise. According to Lyu, the growing attention DOGE is gaining from celebrity endorsements may likely see it being used for everyday transactions.
Lyu feels the relative ease and speed of sending value with the parody crypto-asset could stand it in good stead. He, however, noted that DOGE breaking into the top five anytime soon was out of the question.
The digital asset’s phenomenal rise may be appealing to Musk and Simmons, but Joel Edgerton feels very differently. According to the chief operating officer of crypto exchange bitFlyer, digital coins like DOGE are just fun to hold as they cannot solve real-life problems.
At press time, DOGE traded $0.056, up 1.7%.