After seeing the growth and demand for Dogecoin on its platform, Robinhood CEO Vladimir Tenev believes the meme coin could become the future “currency of the internet”. He took to the microblogging social media platform Twitter to highlight his thoughts.
Tenev highlighted that Dogecoin’s transaction fees, about $0.003 per transaction, are already small enough to place the meme coin as a feasible e-cash frontrunner. He says the block size and the block time of Dogecoin are the main areas that need improvement if the cryptocurrency is to be widely adopted.
The meme coin currently has a 1MB block size and a one-minute block time. This means that its total throughput stands at approximately 40 transactions per second (TPS). The VISA network, in comparison, has a throughput of approximately 65,000 TPS. This shows that DOGE needs to increase its total throughput by 1,625 times to be on par with VISA.
Tenev believes DOGE can achieve this by increasing its block size limit from 1MB to 1GB, and eventually to 10GB. He urged Dogecoin developers to focus on increasing the block size limit above all else. Robinhood’s chief executive also highlighted that DOGE’s inflationary and supply is infinite, as opposed to Bitcoin’s finite supply of 21 million coins. He pointed out that 5 billion new Dogecoin are created every year, and the current supply is about 132 billion. Tenev said it results in a current inflation rate of less than 5%, which is less than the US dollar.
In 2021, Robinhood in its IPO filing stated that Dogecoin accounted for 34% of its cryptocurrency transaction-based revenue in the first quarter. Income from meme coin accounted for 6% of the company’s overall revenue.