dogecoin Is Leading the Meme Coin Craze This Week, Here’s Why
Amid the ongoing meme coin craze, Dogecoin has emerged at the forefront, attracting investors with the surprising rise in DOGE price. The cryptocurrency’s recent price rise has solidified its position as one of the top gainers in the meme coin market.
Meanwhile, the increase in its price and market cap has helped it surpass Cardano (ADA) recently and has attracted the attention of many. So let’s look at the factors that caused Dogecoin’s rapid rise this week.
Why Does Dogecoin Reign Amid the Meme Coin Craze?
The entire crypto market experienced turbulent trading last week as uncertainty continued. The significant outflow in the US Spot Bitcoin ETF, the SEC’s investigation into Ethereum’s securities status, and others have dampened investor sentiment.
However, despite the looming concerns, Dogecoin maintained its bullish momentum throughout the week, indicating increased investor confidence. While there are many reasons behind the rise in DOGE prices, let’s look at some of the key reasons.
Coinbase Dogecoin Futures Listing Announcement
Leading cryptocurrency exchange Coinbase filed with the CFTC on March 7 to offer cash-settled futures for Dogecoin (DOGE), litecoin, and bitcoin cash. This move sparked optimism, especially among Dogecoin enthusiasts, pointing to Dogecoin’s enduring popularity.
Coinbase, meanwhile, highlights Dogecoin’s long-standing appeal, calling its evolution from a meme to a staple in the cryptocurrency industry a key factor in boosting market confidence. Notably, the exchange aims to launch DOGE futures and other contracts by April 1, emphasizing increased confidence in Dogecoin’s position.
Elon Musk’s Last Comment
In a recent statement, Tesla CEO and X owner Elon Musk caused a stir in the crypto market by hinting at Dogecoin’s potential as a payment option for Tesla cars. Musk’s comment, reported by parofix Media in mid-March, increased speculation and optimism among investors.
Meanwhile, Elon Musk had previously promoted meme-coin and was known for his support for crypto. On reflection, the world’s richest man’s interest in Dogecoin signals a potentially significant development in Dogecoin adoption and further solidifies its position in the cryptocurrency landscape.
Also Read: Toncoin (TON) Price Drops as Spain Bans Telegram
X Securing More Payment Licenses in the USA
X Payments, led by Elon Musk, received three additional money transmitter licenses in three US states this week, according to insider information. X Payments, currently licensed in 22 states, aims to roll out payment features this year.
Notably, Musk had previously hinted that payment features would go live in mid-2024 during a conversation with Ark Invest CEO Cathie Wood. However, after the latest announcement, Dogecoin price increased to reflect Musk’s influence. Additionally, speculation is emerging that Dogecoin will potentially become a payment option on X, marking another milestone for the cryptocurrency.
Rising Whale Event
The recent rally in Dogecoin price gained momentum as prominent crypto analyst Ali Martinez reported significant whale activity. On March 21, Martinez highlighted that Dogecoin whales purchased 25 million DOGE in 72 hours, amounting to approximately $3.75 million.
Source: Ali Martinez, X
Meanwhile, these significant purchases indicate increasing investor confidence in Dogecoin, which contributes to its upward trajectory. Whale movements combined with positive developments increased interest and increased Dogecoin’s value in the crypto market.
In conclusion
Dogecoin’s recent rally points to a bullish trend, with Open Interest (OI) increasing significantly. CoinGlass data reveals that Dogecoin OI has increased by a significant 11.69% in the last 24 hours, reaching $1.35 billion, increasing market interest.
Meanwhile, leading crypto exchanges such as Binance and Bybit witnessed significant OI increases, with increases of 12.96% and 11.03% respectively in the last 24 hours. In addition, the significant rise in Dogecoin price last week, despite volatile trading in meme coins, shows that investors have increased confidence in this leading meme coin.
Also Read: Cathie Wood Sold $123 Million in Coinbase and Robinhood Stock This Week
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A seasoned professional with 3 years of experience in the financial market, Rupam has honed his skills as a meticulous research analyst and insightful journalist. She enjoys exploring the dynamic nuances of the financial landscape. Currently working as a sub-editor at Coingape, Rupam’s expertise goes beyond traditional boundaries. His contributions include breaking news, examining AI-related developments, providing real-time crypto market updates, and providing insightful economic news. Rupam’s journey is marked by his passion to unravel the intricacies of finance and deliver compelling stories that resonate with diverse audiences.
The content presented may contain the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. Neither the author nor the publication accepts any liability for your personal financial loss.
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