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Ripple vs. Dogecoin: Which Cryptocurrency Should Be Part of Your Portfolio in 2022?

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Several cryptocurrencies have generated excellent returns for investors since March 2020. Currently, these digital tokens are being viewed as an alternative asset class, attracting institutional investment at an enviable pace. While Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) are the two most popular cryptocurrencies in the world, and there are approximately 13,000 other tokens in circulation.

Here, we will look at two other blockchain networks, ripple (CRYPTO: XRP) and Dogecoin (CRYPTO: DOGE), to see which is your best bet at current valuations.

Dogecoin has a market capitalization of $22.5 billion.

With a market capitalization of $22.5 billion USD, Dogecoin is currently the 12th largest cryptocurrency in the world. The DOGE token is priced at $0.17 and has gained 2,900% in 2021. Dogecoin is a popular cryptocurrency that has gained 37,000% since its launch in 2013. In fact, the DOGE token rose by an astonishing 27000% between November last year and May 2021. On Despite these impressive gains, Dogecoin is also down 70% from its record highs, allowing you to buy on the dip.

The main driver of the Dogecoin price hike was support from notable personalities including Elon Musk and Mark Cuban. Musk is also called a “Dogefather” and has confirmed that he will work with cryptocurrency developers to enhance its usefulness.

More than 2000 merchants including AMC Entertainment Accept the DOGE code as a method of payment. You can also buy Tesla Goods in cryptocurrency.

But investors should understand that despite its popularity, Dogecoin lacks a competitive advantage over peer networks like Ethereum and Solana (CRYPTO: SOL), where you can create and execute smart contracts. While Dogecoin transaction fees are lower compared to Bitcoin and Ethereum, they are still higher compared to many other networks.

There are approximately 133 billion DOGE tokens in circulation, and this number will increase by five billion each year, making it an inherently inflationary asset. Moreover, 43% of the total number of DOGE tokens is held by 10 wallets, which allows them to easily influence the price of the cryptocurrency.

Ripple has a market capitalization of $39 billion

Ripple is the eighth largest cryptocurrency, with an estimated market capitalization of $39.3 billion. It is the only enterprise blockchain company, and its products are used by customers in over 55 countries. Ripple’s global network also provides its customer base with access to alternative liquidity solutions, where they can take advantage of the XRP ledger functionality to improve payments services.

The XRP token gained 250% in 2021, overtaking Bitcoin but significantly lower compared to many other tokens.

Last year, Ripple Labs was investigated by the Securities and Exchange Commission after its executives allegedly raised $1.3 billion from the sale of XRP tokens as an unregistered security. But Ripple argues that XRP is a digital asset similar to the US dollar or the euro and cannot be considered a security. However, after investigation, several crypto exchanges stopped trading the XRP token.

If the investigation ends in 2022, the XRP token should gain significant momentum in the following months.

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