Three Arrows Capital CEO Su Zhu is bullish on Dogecoin because it's easy to understand and captures the attention of “blue-collar traders.”
Three Arrows Capital CEO Su Zhu has outlined a bullish thesis for Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE).
Speaking on an Aug. 25 episode of “The Game Theory of Crypto Podcast”, Zhu stated that he’s ke on DOGE because the meme coin has captured more interest from “blue-collar” traders than any other crypto on the market.
During the interview, Zhu pointed towards data from popular retail trading app Robinhood, which posted its second-quarter report earlier this month and reported that 62% of the firm’s Q2 crypto revenue was from DOGE trading:
The best way to understand DOGE, I think, is that if you look at Robinhood, which is sort of the most blue-collar style of crypto investing, DOGE is 60% of their crypto revenue. And crypto is 40% of Robinhood’s revenue, so Robinhood is basically a DOGE proxy.
“This is something that I think is mirrored as well now, Interestingly across Coinbase. I mean, a few days ago, DOGE volume was higher than Ether [...] You know, people want to trade DOGE.” he added.
Cointelegraph reported on July 19 that daily DOGE trading volume reached almost $1 billion in Q2. In comparison, the beloved meme coin's average daily volume in Q1 was $74 million.
The Three Arrows Capital CEO emphasized that DOGE has “four times the name brand recognition over Ethereum” in communities not well versed in crypto, as he echoed Elon Musk’s sentiments of DOGE being the “people’s crypto.” He outlined that anyone can own “whole amounts of it,” even the “man who drinks beer can understand it,” and the community promotes it organically.
“If you just look on social media, you look on Twitter, Instagram, DOGE is the only coin where you can see a woman showing another woman and not being paid to do so, but just doing so because she likes the coin,” he said.
No need to be a gigachad to own
— Elon Musk (@elonmusk) February 4, 2021
While more sophisticated traders may stay away from DOGE due to its meme coin status and volatility, Zhu questioned the idea that “crypto needs to be serious,” to be successful. He drew comparisons with Ripple (XRP), which has faced a lengthy legal battle with the United States Securities Exchange Commission more recently, but hit a 36,000% gain in 2017.
It kind of reminds me of XRP in the previous cycle, which is better in every way, because one, there is no Foundation that has a ton of it. There's no reliance on an elaborate ‘banks using it for payments narrative.
“It is just simple. And it's also fair launched by the way. So there's no risk of having it ever be deemed a security, right?” he added.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
Litecoin Price Prediction: LTC tries to retake $100 resistance as miners halt sell-off
Litecoin price grazed 105 mark on Monday, rebounding 22% from the one-month low of $87 recorded during last week’s market crash. On-chain data shows sell pressure among LTC miners has subsided. Is the bottom in?
Bitcoin fails to recover as Metaplanet buys the dip
Bitcoin price struggles around $95,000 after erasing gains from Friday’s relief rally over the weekend. Bitcoin’s weekly price chart posts the first major decline since President-elect Donald Trump’s win in November.
SEC Commissioner Hester Pierce sheds light on Ethereum ETF staking under new administration
In a Friday interview with Coinage, SEC Commissioner Hester Peirce discussed her optimism about upcoming regulatory changes as the agency transitions to new leadership under President Trump’s pick for new Chair, Paul Atkins.
Bitcoin dives 3% from its recent all-time high, is this the cycle top?
Bitcoin investors panicked after the Fed's hawkish rate cut decision, hitting the market with high selling pressure. Bitcoin's four-year market cycle pattern indicates that the recent correction could be temporary.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot ETFs in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.