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Crypto investor Su Zhu is bullish on dogecoin because its affordability, accessibility, and name recognition appeals to everyday investors, he said on an episode of his Uncommon Core podcast released on Wednesday.
The boss of Three Arrows Capital, a crypto hedge fund, said that dogecoin's strengths are that anyone can own whole units, it can easily be transferred between people, and its meme nature makes it accessible to anyone.
"Its memes are simple," he said. "The man who drinks beer can understand it, the girl who posts selfies can understand it and she can just put her money in it and outperform everybody," he said.
"If you just look on social media, you look on TikTok, 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," Zhu said. He added that this community aspect, along with the coin's organic growth, are key reasons for his bullishness.
He pointed to Robinhood's second-quarter earnings as evidence of doge's popularity. The retail-trading app reported that 62% of its crypto-trading revenue was linked to dogecoin, and 41% of its overall revenue stemmed from crypto transactions.
Dogecoin, which was created as a joke, soared by over 15,000% in May as the coin was hyped on social media by crypto-community heavyweights including Elon Musk and Mark Cuban. It is currently the seventh-largest cryptocurrency by market capitalization, according to Coingecko data. While its price has tumbled by 62% from its all-time high, it's still up 8,293% over the past year.
Earlier this month, the Dogecoin Foundation relaunched to develop the coin and community further. Advisors to the board include ethereum co-creator Vitalik Buterin and a dedicated Elon Musk representative, Jared Burchill. Musk has been an active and longstanding supporter of dogecoin, describing it as the "people's crypto" on Twitter.
The coin's skyrocketing price has moved it from a meme to a more serious cryptocurrency in the eyes of many investors. Zhu said that dogecoin shows how a crypto can become a major coin by relying on memes to spread the word.
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