From Meme to Mainstream: Grayscale Eyes Dogecoin for New Crypto Offering

TLDR

• Grayscale considering Dogecoin for potential new crypto products
• Dogecoin placed in “consumption and culture” category by Grayscale
• A Dogecoin ETF could attract traditional investors to meme coins
• Dogecoin network seeing increased activity, highest in 8 months
• DOGE price up 2.4% in 24 hours, trading at $0.1188

Grayscale, a major player in crypto asset management, has recently announced that it’s considering adding Dogecoin to its list of potential crypto products.

This move marks a significant shift in the company’s approach, as it would be their first foray into meme-based cryptocurrencies.

Grayscale, known for its diverse portfolio of digital assets, has traditionally focused on more established cryptocurrencies like Bitcoin and Ethereum.

However, in a recent blog post, the company revealed that Dogecoin has caught their attention as a possible asset for future investment products.

The company categorizes cryptocurrencies into five main groups: currencies, smart contract platforms, financials, culture, and utilities.

Dogecoin has been placed in the “consumption and culture” category, which includes cryptocurrencies that cater to consumer-driven activities.

This categorization sets Dogecoin apart from many other cryptocurrencies under Grayscale’s consideration, which mostly fall under smart contracts and utilities.

If Grayscale moves forward with a Dogecoin-based product, it could have significant implications for the meme coin market.

A Dogecoin ETF, for instance, could open doors for substantial capital inflows from traditional investors who have previously been hesitant to engage with meme coins. This development could potentially help legitimize Dogecoin and other similar cryptocurrencies like Shiba Inu and Floki.

Coinciding with this news, the Dogecoin blockchain has seen a surge in activity over the past week.

On-chain data shows that the number of daily active addresses on the Dogecoin network has reached its highest point in eight months. This increase in network participation suggests growing interest and engagement with the cryptocurrency.

As of the latest data, Dogecoin is trading at $0.1188, showing a 2.4% increase in the past 24 hours. The trading volume for Dogecoin has also seen a significant boost, rising by 42% in the same timeframe.

Dogecoin Price on CoinGecko

This uptick in both price and volume aligns with the increased activity observed on the blockchain.

Looking at the broader picture, Dogecoin’s price has increased by 16% over the past 30 days. The cryptocurrency is currently approaching a key price level of $0.12, which represents an important order block from October 1.

If Dogecoin manages to break through this level, it could potentially target a minimum price of $0.129.

Grayscale’s interest in Dogecoin comes at a time when the company is facing increased competition in the crypto asset management space.

Recently, BlackRock’s Spot Bitcoin and Spot Ethereum ETFs surpassed Grayscale’s funds in terms of investments, unseating Grayscale from its long-held position as the largest crypto asset manager.

The potential addition of a Dogecoin product to Grayscale’s offerings could be seen as a strategic move to diversify its portfolio and tap into the growing interest in meme-based cryptocurrencies.