Here’s why Doge-INR and Doge-USD prices can be slightly different
Elon Musk / Twitter
- Doge-INR and
Doge-USDare two different denominations of Dogecoin, denoted in Indian Rupee and US Dollar, respectively.
- Buyers have the option of buying Dogecoin in either of these denominations, but sometimes there can be price differences.
- There are two reasons for the difference in Doge-INR and Doge-USD prices.
- Find out if you should buy Dogecoin in INR or USD.
Dogecoin has been on a seemingly unstoppable rally upward, delivering returns of over 1000% since the beginning of April, this year. Since then, Dogecoin buyers have seen their investments multiply by nearly 12 times, with the cryptocurrency breaking all of its previous records in this time period.
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However, buyers of the cryptocurrency in India have been witnessing a somewhat strange discrepancy – the prices of the Dogecoin are different in INR and USD.
The explanation for this is simple – the prices are influenced by the demand and supply. In addition to this, the prevailing exchange rate of the US Dollar acts as a multiplying effect on this difference.
As you can see, Doge-INR and Doge-USD are usually at similar prices. But the difference between the two was much wider during mid-April, suggesting that the gap between the demand for Doge-INR and Doge-USD was wider than usual.
According to data obtained from WazirX, one of the largest cryptocurrency exchanges in India, there was a massive demand for Doge-INR in India since the beginning of May, when compared to Doge-USD, resulting in users seeing a difference in prices of the cryptocurrency in Indian Rupee as opposed to US Dollar.
WazirX revealed to Business Insider that its Doge-INR volume (from May 1 to May 9) stood at 2.94 billion as opposed to just 444 million for Doge-USDT (USDT is USD Tether; the prices of Doge-USD and Doge-USDT are similar). USD Tether is a blockchain-based stable coin and has a value that is close to $1.
In total, according to data obtained from crypto tracker Coinmarketcap, the total Doge-INR volume, globally, since April stood at a whopping 45,530 billion. In comparison, Doge-USD volume stood at 613 billion.
AdvertisementThe two factors that cause the prices of Doge-INR and Doge-USD to vary slightly are the difference in volume between the two, and the USD-INR exchange rate fluctuations.
Which one should I pick – Doge-INR or Doge-USD?
The answer to this is simple – you can pick whichever you like, as the differences are usually minimal.
AdvertisementWhile all India-based cryptocurrency exchanges offer both, some US-based exchanges like Binance only offer Doge-USDT
As you can see in the chart above, Doge-INR prices usually follow Doge-USD prices even after accounting for volume and USD-INR exchange rate fluctuations.
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