Today SALT, the leading provider of large Blockchain-Backed Loans™ for cryptocurrency holders, announced the popular Dogecoin as its latest collateral option for clients seeking to leverage their digital assets to secure a USD loan.
Dogecoin is a cryptocurrency featuring a likeness of the Shiba Inu dog from the “Doge” Internet meme as its logo. Introduced as a “joke currency” on 6 December 2013, Dogecoin quickly developed its own online community and reached a capitalization of US$60 million in January 2014.
Developed by Billy Markus in Oregon, this coin was designed to be just a fun currency and was named after the doge meme of Shiba Inu.
Dogecoin was first created in order to poke fun at the cryptocurrency space, but this is one joke that hasn’t died down. Five years after it launched, Doge is still going strong and outliving many more serious coins.
But it’s also got some advantages that make it a serious contender in cryptocurrency. It takes one minute to mine a dogecoin block, making it faster than both Bitcoin and Litecoin. And the fees are way lower, too: the fees cost less than a penny per transaction.
Those low fees have made Dogecoin a great way of sending tips or small contributions. In 2014, Dogecoin holders raised $50,000 for the Jamaican bobsled team. Since then, the Dogecoin Foundation has also arranged other charity initiatives.
However, Markus had no idea that this fun currency of his would achieve a permanent status in the crypto world.
But, as usually happens this is exactly what happened and the coin soon rose in value as it attracted a whole lot of internet communities and thousands of users. These users shared the digital currency by posting memes about this coin on the internet.
The hype paid off really well and ended up putting this cryptocurrency among the top coins present in the market. So, a coin that began as a joke managed to survive and thrive when other promoted digital assets fell by the wayside.
However, survive is just an understatement. Research shows that Dogecoin currently has third-highest daily active addresses falling just behind BTC and ETH.
Having recently updated its platform to include Litecoin, SALT has seen increased loan demand from an international standpoint, specifically from the UK, New Zealand, Hong Kong and Vietnam. Now, the company is continuing the momentum by adding a fourth collateral option for its clients.
Dogecoin has a rich history and incredible support from its community, is widely traded, offers high liquidity, and is built using the Bitcoin code base — all factors that make it not only a viable asset to loan against, but an obvious collateral choice for SALT, as it enables the company to connect with the broader crypto community in a fun, approachable way.
Dogecoin’s Shockingly Repetitive Price Action
Looking at the DOGE/BTC weekly chart, you can spot a shockingly repetitive pattern. It almost look like Doge is playing a joke on the markets. The pattern brings the pair to the median high resistance every 8 to 12 months, just to go back down to the median low support. The move to the top is normally sharp and rapid, while the move downwards is choppier and slower.
The last time we saw the up-move was in August 2018. It took the pair 2 months to reach the median high of 0.00000106, and then the price action followed with the inevitable crash. This time around though, it barely reached the median lows and started going back up again in November. This week, the pair successfully broke above the Ichimoku cloud both on the weekly and daily charts.
Kevin Rooke, a Canadian cryptocurrency researcher with a penchant for the internet’s favorite meme currency, recently took to Twitter to accentuate the fact the asset’s underlying network has lasted the test of time.
Dogecoin is averaging more daily active addresses in December 2018 than December 2017.
Dogecoin also has more daily active addresses than all cryptocurrencies except Bitcoin and Ethereum.
Much users. Many adoption. ? pic.twitter.com/cu7nAWHgGt
— Kevin Rooke (@kerooke) December 17, 2018
Dogecoin”HODLers” have had other reasons to be bullish as well. As reported by Ethereum World News previously, as of late-October, users of the popular Salt Lending platform will be able to put up their DOGE as collateral for loans. Elaborating on this exciting subject matter, Salt Lending, or SALT for short, issued a Medium post to highlight what this move entails.
For some unknown reason, the overall demand to get Dogecoin listed on the top 10 cryptocurrency exchanges continues to fall on deaf ears. Considering how Dogecoin transacts the third-most value over its network of all currencies, one would expect more companies to pay attention. For the time being, such an elusive listing remains out of reach, although it does create some interesting debates regardless.