Despite its lower market capitalization, Dogecoin is more widely recognized by American investors than Ethereum – the second largest blockchain in the world.
Ironically, the power of memes is no joke. According to Grayscale's third annual investor study, Dogecoin is the best-known altcoin. 74% of respondents have heard of the meme currency, compared to just 56% who have heard of Ethereum.
But Bitcoin is still king, recognized by 99% of investors.
Grayscale's year-end study examines investors' “perspectives and attitudes” toward Bitcoin. However, he also covers some comparative sentiments around the numerous other cryptocurrencies that came after him.
Dogecoin is not only highly recognized, it is also purchased. Apparently, 44% of Bitcoin investors also have some DOGE, very close to the 46% who have Ether (ETH).
This is especially surprising given that ETH is required to transact on any other token on the Ethereum blockchain, including common stablecoins like USDC and Tether (USDT).
The popularity of other altcoins is significantly less. Only about 25% of investors are aware of Litecoin, Cardano or Tether. Of Bitcoin investors, only 26%, 15% and 9%, respectively, buy these other assets. Overall, 87% of Bitcoin investors have at least some altcoin.
Given that doge was already a popular internet meme, the mere existence of Dogecoin already provided the basis for gaining traction online. Furthermore, the coin was repeatedly promoted by Tesla CEO Elon Musk, whose mere tweets caused it to skyrocket in price.
However, even the creator of Dogecoin – who designed the cryptocurrency as a joke – was surprised by the value it amassed. Its market capitalization is now over US$20 billion, trading at R$0.88 per currency.
Other Study Results
The Grayscale report states that 26% of Americans now have BTC – up from just 23% last year. Furthermore, more than half of current Bitcoin investors have started investing in the last 12 months, proving its accelerated adoption.
They're not “lettuce hands” either: two-thirds of those who bought Bitcoin 12 months ago are still holding it – a wise move given its rapid escalation throughout 2022.
77% of investors said they would be more likely to invest if a Bitcoin ETF existed. Although a BTC futures ETF was launched in the US in October, regulators continue to oppose a spot ETF (which actually buys the currency, not just futures contracts), which the crypto community generally prefers.
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Dogecoin content is better known than Ethereum, reveals Grayscale's study first appeared in Cointimes .