Analysis: Dogechain gains momentum, can DOGE growth continue?

The recent crypto rally is showing signs of stalling and bears now seem to be in control once again. Most cryptocurrencies are dropping in value; however, there are some standouts. In the case of cryptocurrencies right now, Dogecoin (DOGE/USD) is that exception. But why is crypto’s original meme coin rallying while others are failing? 

CryptoBanter has a theory. In a YouTube video yesterday, the mega influencer suggested that Dogecoin is leading the charge because Dogechain – an EVM-compatible L1 that gives DOGE DeFi utility – just launched. As such, investors who were savvy and bought Dogecoin within the past week are sitting on a profit

Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

Those who want to participate in this new network need DOGE for gas and anything else they want to do on the chain. Further, CryptoBanter speculates that many are buying DOGE because they want to be eligible for the upcoming Dogechain airdrop. 

Dogechain – An Unprecedented Launch

Dogechain’s mainnet went live less than a week ago. In that short time, the high-rising project has made heads turn with its almost-unbelievable launch statistics. 

Data obtained from the Dogechain explorer indicated that more than 70,000 unique wallets had been created in 5 days. The chain is currently registering a staggering 432,823 transactions per day.

For a chain that has been around for less than two weeks, this is impressive. Compare that with the latest Ethereum news which tracks at 1.1 million and Polygon’s 2.7 million daily transactions, and you will see why Dogechain is grabbing attention within the crypto space. 

Dogechain is performing well despite the bear market

Dogechain’s excellent performance comes despite the bear market. While many projects launched in the bear market fail to gain traction, Dogechain has performed excellently. 

Dogechain’s performance comes despite not officially receiving an endorsement from Dogecoin’s core development team or the Dogecoin Foundation. Many members have formally distanced themselves from the “knock-off” chain and even gone so far as to call it a scam. 

Meme tokens are driving demand for Dogechain

A key aspect of the Dogechain is the fact that it is driven by meme tokens. Dogechain’s use of DOGE as gas for smart contracts has drawn the attention of meme token investors, first and foremost. 

At the moment, only four dApps exist on Dogechain, and all of them are unaudited, decentralised exchanges. These DEXes list hundreds of newly-released tokens and allow users to trade their wDOGE for an attempt at profit.

Like other meme tokens on BNBChain and other notable blockchains, the meme tokens listed on Dogechain have little to no utility. They exist solely as speculative instruments for high-risk, high-reward “degen-aping.” 

Many within the crypto community didn’t expect the hype to last more than a couple of days. However, the DEXes on Dogechain are generating $25 million in trading volume on a 24h basis, a huge amount for exchanges that are less than two weeks old. 

While meme tokens are currently driving the activities on Dogechain, some sound projects are planning to debut on Dogechain very soon. 

Dogechain partnered with Frax Finance and QuickSwap, which will deploy stablecoins and audited DEXs on the chain. 

Furthermore, Dogechain recently announced a native NFT marketplace that should go live in the coming days, using wDOGE as gas.  

Dogechain is also set to release its token. The DC token has already been listed on Coingecko and is expected to bring staking capabilities and yields to Dogechain users. The emergence of Dogechain is set to make Dogecoin stronger and more functional.