Dogecoin is not good for the crypto market, says Ripple CEO

Dogecoin is the tenth-largest cryptocurrency by market cap, but Ripple’s CEO said it is not good for the market.

Ripple CEO Brad Garlinghouse is not a fan of Dogecoin and has made it clear during a CNBC-moderated panel discussion at the Fintech Abu Dhabi event. Garlinghouse stated that the rising inflation level is creating tailwinds for Bitcoin and Ether but admitted that he doesn’t see the importance of meme coins in the market. He said;

“I’m actually not convinced, somewhat controversially, I guess, that 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 has some inflationary dynamics itself that would make me reluctant 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 cap above $30 billion. Dogecoin surged to the $0.7 level earlier this year, with its market cap touching nearly $90 billion during that period.

Unlike the other leading cryptocurrencies, there is no hard limit on the supply of Dogecoin. Garlinghouse said the rising inflation levels have increased the interest in cryptocurrencies and made Bitcoin a very attractive asset. The Ripple CEO added that;

“We’re seeing inflation that we haven’t seen in decades. When people are concerned about holding a fiat currency that might be inflating, and that’s devaluing, they’re looking at: ‘How can I hold other assets that won’t have that same inflationary dynamic?”

The leading cryptocurrency rallied to a new all-time high above the $69k level two weeks ago. However, the broader cryptocurrency market has been in a bearish run since then, and Bitcoin is down by nearly 20% from the all-time high it achieved a while back.

Dogecoin briefly lost its tenth place to Avalanche (AVAX), which has been rallying thanks to the massive adoption of DeFi protocols on its blockchain.