According to data from the brokerage, holdings of the meme token dogecoin soared above bitcoin and ether among eToro customers in the second quarter.
According to eToro’s June 30 snapshot, cardano held the top spot in each quarter, but dogecoin jumped past them to take second place.
Bitcoin remained at the fifth position for the second quarter, after falling to second in the first three month of the year.
Ether, however, was fourth in the second quarter ranking, which is also lower than the third quarter’s.
Altcoin tron is consistently in the top five. It was established in 2017. Its native cryptocurrency, TRX, is it.
Yoni Assia CEO of eToro said that the decision by eToro to include dogecoin trades to its platform was made in May after much consideration. Insider he stated that listing the shiba-inu-themed token was not an option due to its history.
Dogecoin started out as a joke in 2013. It has experienced a wild rally in 2021, even with recent steep declines. This is due in part to the support of well-known backers like Elon Musk or Mark Cuban.
Listings on many cryptocurrency exchanges such as eToro and Coinbase helped boost the coin’s value this year, including Gemini. The billionaire founder of crypto-exchange FTX also named it’asset for the year.
Robinhood recently revealed in an S-1 filing that it is preparing for its IPO that the trading platform generated almost $30 million in revenue from customers who traded dogecoin. This figure was expected to increase further in the second quarter, when dogecoin’s value soared above 1,375%.
Altcoins have been steadily rising in popularity, with bitcoin’s share of total crypto market falling below 50% for the third time in three years. According to CoinGecko, it stands at 43%.
Insider was told by Jack McDonald, CEO at fintech firm PolySign that people are now looking at altcoins as a way to earn alpha, rather than the very crowded BTC market. Altcoins offer diversification and a way to avoid the obvious correlation between BTC, the rest of market, and BTC.
Altcoins that are bought and held, particularly those established relatively recently, show greater trust in the ecosystem, Everett Kohl (founder of Dbilia.com), told Insider.
However, for some people, such as Eloisa Marchesoni (co-founder and COO at Blockchain Consulting), investing in altcoins can be more risky.
Insider told her that if you don’t take profits, you run the risk of sitting on dead capital or stagnant capital in hopes they survive crypto winter, and regain their price action. “Historically, only a handful of bull runs have been successful.