EddieJayonCrypto
1 May 25
Crypto investment firm 21Shares highlights that a modest 1% allocation to Dogecoin (DOGE) in a diversified portfolio, alongside 3% Bitcoin, can significantly improve annualized returns from 7.25% to 8.95% with only marginally increased risk. Their analysis shows improved Sharpe ratios and contained ...
Crypto investment firm 21Shares finds that a modest 1% allocation to Dogecoin (DOGE) within a diversified portfolio, alongside 3% Bitcoin, can boost annualized returns from 7.25% to 8.95% with minimal increased risk.Stress tests on a classic 60/40 stocks and bonds portfolio showed improved Sharpe ratios and controlled maximum drawdowns when adding Dogecoin, highlighting enhanced risk-adjusted performance. Regular rebalancing, ideally weekly or monthly, is critical to sustaining these benefits and managing volatility during market turbulence.Dogecoin’s effectiveness stems from its low correlation to traditional assets and the broader crypto market plus its strong historical return profile, positioning it as a genuine diversifier rather than merely a speculative asset.21Shares outlines three price scenarios for Dogecoin by late 2025:• Bear case: $0.38, assuming a 10% annual compound from its 2021 high of $0.73, indicating limited upside but still above current levels.• Neutral case: near $1, based on a $5 trillion total crypto market capitalization with Dogecoin maintaining a 3% market share.• Bull case: approximately $1.42, reflecting a sustained historic compound annual growth rate of 189%, fueled by renewed retail interest, adoption, and platform integrations like X.The report concludes that a carefully structured, small allocation to Dogecoin can be a prudent and potentially rewarding addition to high-return investment portfolios rather than a reckless gamble.