21Shares emphasizes the role of dowecoin in diversified, high -ranking investment portfolios

A modest assignment of 1% to Dotecoin (Doge) could significantly improve the portfolio returns without a sensible risk, according to a new analysis of the crypto investment company 21Shares.

In his April report, the company evaluated how Dogecoin develops when it is added to a Bitcoin-reinforced growth strategy.

Stress tested portfolios

The company's portfolio stress test showed that the Baseline portfolio, a conventional 60/40 mix of stocks and bonds, returned 7.25% annually.

In the meantime, the assignment of a 3% Bitcoin and 1% dotecoin increased the annualized returns to 8.95%. The Sharpe conditions improved in almost all simulations, which indicates better risk-cleaned performance.

Although the encore introduced a certain volatility, the increase in the maximum distance was only marginally, and the losses remained without a new compensation.

The report emphasized that the new compensation, especially monthly or weekly, is of essential importance in order to maintain the return potential and to prevent the risk from being built quietly in turbulent markets. The company attributed the effectiveness of Dotecoin to its low correlation with the traditional assets and the wider cryptom market together with a strong historical return profile.

According to 21Shares, Dotecoin is more of a viable diversifier than just a speculative mem.

Dogecoins of potential way

In the report, three price proposals for Dogecoin were shown in the current market cycle: a bear case, a neutral case and a bull case.

In the event of a bear, 21shares argued that Dogecoin's latest rally already corresponds to a large part of its cycle potential.

If the token connections of 10% are 10% annually from their 2021 high of 0.73 to 10%, it would reach about 0.38 by the end of 2025. This would still be more than twice the current value, but the first time that Dogecoin will set a new all -time high within a complete market cycle.

In the neutral case, the company assumed that the entire crypto market capitalization with 5 trillion US dollars would be loaded a maximum of 3% of 3%. This scenario would lead to a Doge market capitalization of around 150 billion US dollars, which implies a price close to USD per coin.

This presupposes that the token continues to lead the category of Memecoin and adapts to increased competition and the changing retail trends.

The bull case is based on historical cycle growth. Between its low of 2018 of USD 0.007 and the cycle of 2022 of $ 0.0585, Dotecoin recorded a composed annual growth rate of 189%.

If Doge reflects this cycle on this trajectory, it would rise to about 1.42 US dollars. To achieve this, 21shares said that token would need support from renewed retail enthusiasm, increased acceptance and integration in platforms such as X.

The company came to the conclusion that a small assignment of Dogecoin with proper structure and rebalancing is not ruthless but possibly worthwhile.

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