Steve Gregory, the CEO of global crypto exchange Currency.com LLC, US, said that Dogecoin (DOGE) holders seem to be leaning toward more popular tokens and coins with larger market capitalization, such as Bitcoin (BTC) and Ethereum (ETH).
[T]raders are seeing a bottom for DOGE and favoring the safety of larger market cap coins like Bitcoin (BTC) and Ethereum (ETH).
Gregory’s observation came after Currency.com reported a significant drop in trading activity for the canine-inspired digital currency, with investors becoming more risk averse.
According to the numbers from the exchange, the trading volume for DOGE/USD this June dropped by 51% from last month. Currency.com also observed that the number of users in the DOGE/USD trading pair fell by 57%.
In May, DOGE was one of the top traded cryptocurrencies on the exchange after BTC/USD, ETH/USD, and LTC/USD.
The CEO also suggested that investors, especially those holding risk assets, should keep posted on the next US Federal Reserve meeting. “With current indications pointing to a possible increase in the interest rate,” explained Gregory, “it’s likely that risk assets like cryptocurrency could continue to slide. Typically, crypto is the first to sell-off, followed by the wider global equities markets.”
Notably, the next meeting is slated for July 26 to 27, wherein the Federal Open Market Committee (FOMC) is expected to continue its aggressive approach to monetary policy tightening.
Meanwhile, trading pairs BTC/USD, ETH/USD, and LTC/USD continue to dominate the most traded list on Currency.com. According to the exchange, this has been two months running.
The platform also observed an uptick in traders selling their Bitcoin holdings. This might imply that HODLers are no longer enthusiastic about the crypto.
“With the Ethereum ‘merge’ just a few months away, and a major daily supply drop in ETH issuance, we see these as possible catalysts that pull the asset class out of its downward trend,” added Gregory.
In 2021, Currency.com saw a 343% customer base growth, making the platform one of Europe’s fastest growing crypto exchanges.