Crypto asset management giant Grayscale has recently announced its consideration of expanding its offerings to include products based on the popular meme cryptocurrency, Dogecoin. In a recent blog post, Grayscale highlighted that Dogecoin has caught the company’s attention as a potential asset for future investment products. As the king of meme coins, a Dogecoin-based crypto product would be a turning point for the entire meme coin niche.
Dogecoin Product To Hit The Market Soon?
This extensive portfolio includes top-tier digital assets such as Bitcoin, the number one cryptocurrency by market cap, alongside a variety of innovative and emerging tokens like Filecoin (FIL), Bittensor (TAO), and Decentraland (MANA), to name a few.
Grayscale’s involvement in such a wide spectrum of cryptocurrencies makes it the most actively engaged asset manager within the digital asset space. However, despite its diverse offerings, the asset manager has yet to consider products based on a meme cryptocurrency until now.
According to the blog post, Dogecoin is one of a few cryptocurrencies currently under consideration for Grayscale. Grayscale broke down its list of cryptocurrencies under consideration into five primary categories: currencies, smart contract platforms, financials, culture, and utilities.
Most of the assets under review fall within the categories of smart contracts and utilities, which focus on blockchain technology innovations and practical applications. However, Dogecoin stands out, as it has been placed in the “consumption and culture” category, which covers cryptocurrencies that cater to consumer-driven activities.
What Does This Mean For DOGE?
Grayscale’s consideration of a Dogecoin product shows the increasing recognition of meme-based cryptocurrencies. Until recently, Grayscale was the largest crypto asset manager in terms of investments for many years. However, Grayscale was recently unseated by BlackRock after the latter’s Spot Bitcoin and Spot Ethereum ETFs exceeded Grayscale’s funds.
Nevertheless, a Dogecoin ETF would open the door for huge capital inflows from traditional investors, who have previously been reluctant to engage with meme coins. This, in turn, could help legitimize Dogecoin and other meme coins like Shiba Inu and Floki.
On the other hand, the Dogecoin blockchain has been infused with growing activity in the past seven days. According to recent on-chain data, this surge in network participation has pushed the number of daily active addresses on the Dogecoin network to its highest point in eight months.
At the time of writing, Dogecoin is trading at $0.1188 and has increased by 2.4% in the past 24 hours. Notably, the Dogecoin trading volume has increased by 42% in the same time frame, which also points to a surge in activity on the blockchain.
The Dogecoin price has also increased by 16% in the past 30 days and is now on the verge of breaking through an order block of $0.12 on October 1. A break above this level would put Dogecoin towards a minimum target of $0.129.
Featured image created with Dall.E, chart from Tradingview.com