A recent study by 21Shares reveals that even a small allocation of 1% to Dogecoin can significantly boost portfolio returns without substantially increasing risk. Through extensive testing with various portfolio setups featuring both Bitcoin and Dogecoin, the firm found an increase in average annual returns from 7.25% to almost 9%, accompanied by improved risk-adjusted performance and higher Sharpe ratios, all with only a minor rise in drawdowns. The key to maximizing returns is consistent rebalancing, ideally monthly, to avoid volatility compounding over time. Why Dogecoin? The firm highlights its relatively low correlation with traditional finance and the broader crypto market, coupled with its history of significant gains, making it more than just a speculative meme—it functions as a genuine diversifier.