Alex Thorn, firm-wide research lead at Galaxy, used a set of metrics and compared the cryptocurrency prank with Bitcoin (BTC) – the leader of the cryptocurrency pack in terms of market capitalization, to make his point.
Doge in numbers: Galaxy Digital report shows increased user adoption thanks to DOGE’s current run. Thorn noted that there were nearly 3.6 million addresses containing any amount of cryptocurrency. He noted that a “huge” – over 60% of the total supply – moved last year.
See also: How to buy Dogecoin (DOGE)
“This indicates a significant transfer of coins from old holders into the hands of new entrants.”
The number of transactions has “generally increased,” according to Thorn and he noted an acceleration in activity on the chain, coinciding with recent price action.
The analyst pointed to the merger of DOGE mining with Litecoin (LTC) and the fact that miners now derive more income from DOGE than from LTC.
LTC-DOGE Merged Mining Revenues, Courtesy, Galaxy Digital Research
However, Thorn also said that DOGE’s profitability of mining has also led to a sharp increase in the price of mining equipment. He wrote that the price of a Bitmain Antiminate L3 has fallen from $ 83.26 to $ 547.71 since the start of the year.
DOGE under the hood: The report noted the lack of activity in the Dogecoin GitHub repository since 2017, which Torn says is a “lack of development effort for the project.” He also pointed out that the vast majority of DOGE coin nodes were not fully in sync with the network.
According to Thorn, only 26.8% of DOGE coin nodes are fully synchronized with the network. In comparison, 44% of Bitcoin nodes are fully synchronized.
Dogecoin and Bitcoin nodes according to Galaxy Digital Research
Thorn claimed that the small number of nodes and the dearth of fully synchronized nodes made it difficult for new fashion runners to effectively connect and synchronize with the Dogecoin blockchain.
See also: Dogecoin Creator Says Meme Coin Development Has Keeped Up With Bitcoin
Memes and digital gold: In comparing DOGE with BTC, Thorn presented several drawbacks that affect the cryptocurrency itself. These include a lack of robust market infrastructure and a lacking “robust ecosystem” of portfolio solutions.
Thorn wrote that the number of addresses containing BTC outweighs DOGE by “more than an order of magnitude.”
The analyst said DOGE has no supply cap and its current annualized inflation rate is “significantly higher” than BTC.
Active Dogecoin Vs Bitcoin Addresses, Courtesy of Galaxy Digital Research
Another problem highlighted by the author was the concentration of supply from DOGE, which he said is “heavily biased in favor of large landlords”.
BTC also has a number of other advantages, such as a substantial lead in number of trades and daily transfer value and faster settlement of trades, despite the DOGE network having shorter block times.
Thorn also claimed in the report that a 51% attack on Dogecoin would be relatively shallower compared to Bitcoin and result in a permanent loss of funds, while in the case of Bitcoin recipients, “will ultimately be restored.”
Vive le DOGE: Thorn presented the case of DOGE’s survival, noting that it was the best performing major digital asset since the start of the year, alongside an expanded ownership base and growing settlement. .
The analyst also touched on mining profitability and the fact that Elon Musk, CEO of Tesla Inc (NASDAQ: TSLA), received the title of “CEO of Dogecoin” by the community.
See also: Dogecoin hits another all-time high just below 45 cents amid Elon Musk-SNL speculation
Calling it an ‘admirable project’ capable of garnering significant support, Thorn praised the coin’s honesty and said, ‘Dogecoin’s longevity is assured as long as there is a truism: people love a coin. good joke.”
Price action: DOGE traded 39.04% higher at $ 0.58 at press time, while BTC traded 1.16% lower at $ 55,143.63.
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