Three Arrows Capital CEO Su Zhu has outlined a bullish thesis for Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE).
Speaking on Wednesday’s episode of The Game Theory of Crypto podcast, Zhu stated that he’s keen 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 toward 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 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 XRP, whose underlying blockchain company, Ripple, is in the thick of a lengthy legal battle with the United States Securities and Exchange Commission, but the token 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.