Dogecoin investors have good reason to be optimistic.
The cryptocurrency formerly known as a joke is now getting its own blockchain.
Dogechain is Dogecoin’s exclusive blockchain where users can bridge the cryptocurrency and use it for Defi protocols, NFTs, and games.
However, it is important to note that Dogechain is not an official Dogecoin project, instead, Dogechain was created by a group of Dogecoin enthusiastic developers.
And despite its marketing announcements, Dogechain is not really a “Layer 2” network, meaning that the blockchain was not built on top of a layer 1 like Ethereum. I
Dogechain is also not a true layer 2, which is built on top of layer 1 such as Ethereum. Instead, it employs the use of Polygon Edge, a unique blockchain application from a top layer 2. This indicates that it is EVM-compatible and capable of running Ethereum-based dAPPS.
Dogechain’s rising interest has taken over the market for the last couple of days.
A large number of DOGE followers appear to have jumped head first into the Dogechain. In just under 2 days, over 750.000 transactions were made on the platform. All transaction fees were paid in DOGE.
The official Dogechain’s Twitter already has a 15k following, and the platform has gathered over 60.000 wallets.
Despite not being an official Dogecoin project, investors of the cryptocurrency are optimistic about the results of a Dogecoin blockchain can bring to the market.
After its announcement, Dogecoin saw its price rise by 11% in under 24 hours. Investors credit this rise to the news of a dedicated layer 2 blockchain for Doge.
Despite the currency being on a year-long bearish market, Dogecoin is riding on a 3-month high. Optimistic investors are expecting to see a pump in the currency in the following months.
The Effect of Meme Coins
It has become evident that internet jokes, also known as “Memes”, can have a significant effect on the market.
Dogecoin was created by Billy Markus and Jackson Palmer in 2013. The cryptocurrency was created as a joke, where the goal was to joke around while making a mockery of the then-rampant cryptocurrency mania.
The coin kept at a relatively stable rate throughout the years. It was only in 2020 that Tesla CEO, Elon Musk helped skyrocket the cryptocurrency value to unimaginable levels.
With a simple tweet, Musk created a frenzy in the cryptocurrency world, and Dogecoin’s value increased by 200% in less than 24 hours!
Today, Dogecoin seems to have stabilized around the $5 cents mark. But investors are looking forward to the next pump.
After that, we saw a rising increase of meme coins, today we have several meme cryptocurrencies like Shiba Inu (SHIB), Dogelon Mars (ELON), Baby DogeCoin (BabyDoge), and Samoyedcoin (SAMO) among many others.
The volatility of meme coins makes it an interesting terrain for investors looking to capitalize on the market pulls.