Dogecoin surges 50% in three weeks. Look, what sparked the rally!

Amid gloom in the crypto market, Dogecoin (DOGE) has seen a sharp rally. The largest meme coin has been on a roll, thanks to its recently launched blockchain named Dogechain.

After the rollout of the new blockchain, Dogecoin might not remain a joke. The numero uno meme coin could gain a lot more utility with the launch of Dogechain, the experts believe.

Dogecoin is technologically becoming competitive with Ethereum due to the launch of Dogechain, said Sathvik Vishwanath, Co-Founder and CEO, Unocoin.

The blockchain use cases such as DeFi (decentralised finance) and NFTs (non-fungible tokens) can be built on this.

Dogechain is not a true layer-2 network. It is a separate network based on Polygon edge from Polygon (MATIC). Also, it is not an ‘official’ Dogecoin project.

Holders of the meme coin can bridge their holding over to Dogechain to receive Wrapped Dogecoin (wDOGE) in return and then use that on the new platform to interact with DeFi apps, as well as potential future NFT marketplaces, d-apps, and games.

The well-tracked meme token has rallied 50 per cent in the last three weeks, while it is up 30 per cent in the past one week alone.

On Wednesday, Dogecoin zoomed 10 per cent to $0.8864, before giving its gains marginally to trade at $0.0842 at 14.15 hours IST, according to the data from Coinmarketcap.

The volumes zoomed 75 per cent as tokens worth 1.8 billion exchanged hands in the last 23 hours. According to the data, there are a total of 132.67 billion DOGE tokens in supply, with a total market cap of $11.2 billion.

The euphoria around the Ethereum upgrade coupled with the sustained momentum in the crypto market is the main driving force behind the surge in Dogecoin prices, said Shivam Thakral, CEO of BuyUcoin.

“The positive news around DOGE which positioned it as a payment currency may have sparked investor interest in the meme coin,” he said. “Dogecoin is a strong contender for integration into the global payment mechanism,” he added.

Dogecoin is among the most popular internet meme coins and features Shiba Inu on its logo. It was created by Billy Markus from Portland,

and Jackson Palmer from Sydney, Australia. Elon Musk, CEO, Tesla Inc, has backed Dogecoin on multiple occasions.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

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