Crypto-adoption across industries has not really been gradual and steady. The market has seen erratic waves of speculation, exuberance, and acceptance. The growth of altcoins such as Dogecoin, Cardano, and XRP has underlined the evolution of the crypto-ecosystem. These alts, technically, are the market’s “old” coins.
Now, amidst the presence of hyped-up newer coins like MATIC, DOT, and ICP, how do the old coins fare? Is it worth investing in them at this stage? Well, let’s find out.
Dogecoin [DOGE]
Created in 2013 as a joke by its founders, the market’s most popular meme-coin is actually one of the oldest cryptos in the market. Leaving aside its meme and joke aspects, DOGE pumped by 8% over the past week. In fact, the alt’s yearly ROI shared an impressive figure of 6388.56%,[1] at press time.
Time and again, DOGE has enjoyed mini-fame showers thanks to the self-proclaimed “dogefather.” In fact, when Tesla CEO Elon Musk made an appearance on SNL[2] earlier this year, DOGE’s price hit its $0.7 ATH. Since then, however, DOGE’s market cap dominance has shrunk from 3.15% to 1.7%.
For the most part of 2021, DOGE’s Sharpe ratio (the risk-adjusted returns) has remained well above zero. However, at the time of writing, the same stood in the negative (-3.31, to be precise). A lower ratio indicates that the asset’s HODLers are exposed to comparatively higher risks. The odds of negative portfolio returns also intensify as and when the Sharpe ratio declines.
Source: Messari
Though DOGE’s development activity did pick up the pace in the initial few weeks of June, it has been on a downfall since. With no explicit use-case, this alt’s long-term future, arguably, is dull too. Furthermore, when competition increases in the space, DOGE will have to improve on its
