What Happened: Su Zhu, co-founder, and CEO of crypto investment firm Three Arrows Capital, is bullish on the outlook for Dogecoin (CRYPTO: DOGE).
In a recent podcast titled ‘The Game Theory Of Crypto,‘ Zhu reasoned that DOGE’s popularity, particularly among “blue-collar” traders, is a good way to ascertain that the meme-based crypto shouldn’t be underestimated.
According to him, the best way to understand DOGE is by examining crypto trading volume on platforms like Robinhood Markets Inc (NASDAQ: HOOD).
“If you look at Robinhood, which is sort of the most blue-collar style of crypto investing, DOGE is 60% of their crypto revenue. And crypto is 40% of Robinhood’s revenue, so Robinhood is basically a DOGE proxy,” he said.
Zhu then went on to point out that DOGE has four times the name brand recognition that Ethereum (CRYPTO: ETH) does in many communities in the U.S.
“There’s something understandable about DOGE, right. It’s just the dog money. You put your money in dog money,” he said.
“And so I think that DOGE is really underestimated in terms of jus that sheer virality and sort of the quality of the memes and the organicness of that [sic].”
The fact that people really want to trade DOGE is also evident from its trading volumes on Robinhood and Coinbase Global Inc (NASDAQ: COIN), said Zhu.
“I mean, a few days ago, DOGE volume was higher than Ether… it’s still relatively high volumes relative to other coins on Binance, is regularly at the top three, top five volume coin.”
What Else: When it comes to really analyzing the data, Zhu explained that it was actually DOGE that has “the strongest single holding power” of almost any coin in the crypto market.
“You already see it in the volumes…I wouldn’t bet against this trend because I think that the reasons for this trend are actually incredibly organic relative to what’s contrived in a lot of other coins, where they have to really do a lot of marketing.”
Price Action: At press time, DOGE was trading at a price of $0.2701, down 8.10% over the past 24-hours. The meme-based cryptocurrency had a trading volume of $2.4 billion at the time of writing.
See more from Benzinga
© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.