EToro Brokerage Says Clients’ Dogecoin Holdings Outpaced Bitcoin and Ether in Q2 | Currency News | Financial and business news
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Dogecoin meme token holdings topped bitcoin and ether among eToro clients in the second quarter, according to data from the brokerage.
After cardano, which took first place in both quarters, dogecoin topped the two largest cryptocurrencies by market cap to claim second place, according to a June 30 snapshot from eToro.
Bitcoin for the second quarter was in fifth place, dropping from second place in the first three months of the year.
Ether, meanwhile, was in fourth place for the second quarter, also down from third place in the previous quarter.
The altcoin tron, founded in 2017, is consistently in the top five. Its native cryptocurrency is TRX.
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EToro’s decision to add dogecoin trading to its platform only came in May of this year, after careful consideration, according to Yoni Assia, CEO of eToro. He told Insider that it didn’t make sense to list the shiba inu-themed token at first due to its context.
Dogecoin, which started out as a joke in 2013, has seen a meteoric rally in 2021, even taking into account recent steep declines, in part thanks to well-known backers such as Elon Musk and Mark Cuban.
The coin was bolstered this year by listings on numerous cryptocurrency exchanges, including eToro, Coinbase, and Gemini. He was also named “Asset of the Year” by the billionaire founder of the FTX crypto exchange.
More recently, in an S-1 filing for its upcoming IPO, Robinhood revealed that the trading platform generated nearly $ 30 million in revenue from clients trading dogecoins in the first quarter of 2021 – a figure that is expected to explode again in the second quarter when dogecoins price climbed over 1.375%.
The rise of altcoins has been closely documented, as bitcoin’s share of the total crypto market drops below 50% for the first time in three years. It stands at 43%, according to data from CoinGecko.
“People are looking at the larger universe of altcoins for alpha versus very crowded BTC trading,” Jack McDonald, CEO of fintech company PolySign, told Insider. “While there is an obvious correlation between BTC and the rest of the market, altcoins represent an opportunity to diversify your exposure.”
Buying and holding altcoins, especially those founded relatively recently, also shows greater confidence in the ecosystem, Everett Kohl, founder of Dbilia.com, an NFT space company, told Insider.
For some, however, like Eloisa Marchesoni, co-founder and COO of Blockchain Consulting, investing in altcoins carries more risk.
“Unless you make profit as you go, you risk sitting on a pile of dead or stagnant capital hoping it will survive the crypto winter and regain its course,” she said. told Insider. “Historically, only a few of them move from one bull run to the next.”