Dogecoin is the tenth largest cryptocurrency by market capitalization, but the CEO of Ripple now claimed that it is not good for the market.
Ripple CEO Brad Garlinghouse is not a fan of Dogecoin and made this clear during a panel discussion hosted by CNBC at the fintech event in Abu Dhabi. Garlinghouse stated that the rising inflation level is creating tailwinds for Bitcoin and Ether, but admitted that he does not see the importance of meme coins in the market. He said:
“I’m actually not convinced, somewhat controversially, I think Dogecoin is good for the crypto market. It was built as a joke, then it got some momentum from some high-profile people like Elon Musk. Dogecoin itself has a certain inflationary dynamic that would make me hesitate to hold it.“
Dogecoin has been around since 2013 and is currently the leading meme coin. It is also the tenth largest cryptocurrency with a market capitalization of over $30 billion. Dogecoin rose to the level of $ 0.7 earlier this year, with its market capitalization reaching almost $ 90 billion during this period.
Unlike the other leading cryptocurrencies, there is no fixed limit to the supply of Dogecoin. Garlinghouse said that rising inflation has increased interest in cryptocurrencies and made Bitcoin a very attractive asset. The Ripple CEO added:
“We’re seeing inflation that we haven’t seen in decades. If people are worried about holding a fiat currency that inflates and depreciates, then they ask themselves: ,How can I hold other assets that do not have the same inflationary dynamics?'”
The leading cryptocurrency rebounded to a new all-time high above $69,000 two weeks ago. However, the broader cryptocurrency market has been in a bearish trend since then. Bitcoin is down nearly 20% from the all-time high it reached some time ago.
Dogecoin briefly lost its tenth place to Avalanche (AVAX), which had recovered thanks to the massive introduction of DeFi protocols in its blockchain.