Although Dogecoin is one of the best-rated altcoins, it’s not considered as flexible as other altcoins. This is often exactly one of the various faults that the Dogecoin-Ethereum bridge could help to repair. But what exactly is the Dogecoin-Ethereum bridge? During this article, we’ll explore everything you need to understand about this collaboration and what it means for the long term of the world’s biggest meme cryptocurrency, Dogecoin.
Overview Of the Dogecoin-Ethereum Bridge
The Dogecoin-Ethereum bridge is meant to allow investors to transfer Dogecoin from the DOGE blockchain to the Ethereum blockchain and convert them to DOGE tokens. These tokens can interact with different exchange platforms like DeFi before switching back to the DOGE blockchain as Dogecoins through the Dogecoin-Ethereum bridge.
This will pave the way for considerably more Doge transactions to be carried out per second than it was previously possible. This partnership is primarily driven by Vifalik Buterin, Ethereum’s co-founder. His active involvement with the favored meme crypto could reportedly be a boon.
As a result, this bridge is predicted to extend the utilization of Ethereum when it involves the fee payable. However, this is often not only the factor. It also decreases the circulating supply of Ethereum because the bride operators will get to lock up their Ethereum. Meanwhile, the small print of the Ethereum lock-up isn’t available yet to the general public. This suggests that it’ll make the demand for Ethereum spike considerably, and its market supply would fall in the process. The launch will drastically worsen the already peculiar supply deficit within the ETH, and increasing the worth further as time goes on. This is often a newly created price catalyst that comes on top of these innovative and exciting developments within the ETH ecosystem, which doesn’t need any introduction.
There is a consensus about the extraordinary rise in Ethereum’s price within the last year that it had been driven mainly by the increase in popularity within the NFT, DeFi, and blockchain games arena where Ethereum ranks as the biggest leader. No matter the market leadership position, the number of users for DeFi makes up over 90% of Ethereum users, standing at three million from the planet population of over seven billion. This suggests that there’s still more room for growth.
The DOGE-ETH Bridge
The fact that Dogecoin is the crypto with the highest number of unique holders around the world is widely known. Out of these figures, an outsized majority are new entrants into the crypto industry who may or may not have had exposure to Ethereum, to not mention the ETH ecosystem; DeFi, and NFT.
Although it is difficult to verify the amount of Doge users, a rough estimation from social media numbers can be used. At the moment, there are over 2.1 million subscribers in Doge’s subreddit account. Additionally, its Twitter account has over 1.9 million followers. These are the very best among any crypto in the market. There’s a recent IPP following which has shown the importance of Doge to its business as Doge trades account for thirty-four percent of its cryptocurrency revenue in the first quarter of 2021. This rose considerably from just four percent in the first quarter of 2020.
Usually, experienced crypto traders don’t make use of Robinhood for cryptocurrency purchases, regularly doing so on crypto-exclusive exchange platforms. This suggests that we will safely conclude that an outsized majority of Doge buyers at Robinhood are new entrants to the cryptocurrency market in the first quarter of 2021 and hence might participate in NFT’s of DeFi’s.
The bridge is additionally expected to have plenty of advantages on Doge and make added use case for it which might presumably drive demand for BTC to Dogecoin exchange and even more importantly, lock up some Doge’s supply when is replica version, ETH is employed on different platforms.
Conclusions
In conclusion, the bridge collaboration means great news for Dogecoin because it can potentially inaugurate many new entrants into the crypto world. It also gives Dogecoin holders the chance to take part in the world of decentralized finance, governance, gaming, etc., which are presently not available to Dogecoin holders.
The collaboration between the world’s biggest meme cryptocurrency and the world’s second most valuable cryptocurrency is considered an excellent partnership that has the potentials to bring massive growth to both coins.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.
