Over the past week, a meme coin has quietly soared. Dogechain (DC), a derivative of SHIB, DOGE, rose from $0.000362 on Friday to as high as $0.00183. So what’s behind its rise?
SHIB, not DOGE: Dogechain rose the most
According to the data, Dogechain (DC) is up over 200 percent over the week. In the last 24 hours, it gained nearly 30 percent in value. It also jumped over 90 percent from a month ago. As we reported on cryptokoin.com, Dogecoin was launched earlier this year to bring smart contract capabilities to the community. From $0.0004 on Friday, the price of Dogechain rose to $0.0018 during the night hours. It has settled at a price point not seen since Sept. Thus, it achieved a 228 percent gain in seven days.
Dogechain (DC), as we reported on cryptokoin.com, recorded an all-time high at the end of August. But the increase in value is remarkable, as it has since lost 90 percent of its value. Dogechain has steadily dropped from $0.004 to $0.0004 over these two months. Dogechain is inspired by the hugely popular meme coin Dogecoin (DOGE). But separate from it is an EVM compatible layer-2 Blockchain based on Polygon. With the Ethereum merger, Dogecoin has become the second largest proof-of-work (PoW) cryptocurrency by market cap. It comes right after Bitcoin.
There is coin burning in the ecosystem
However, DOGE’s use cases are limited to storing value and paying. This is why Dogecoin failed to thrive in fast-growing crypto sectors such as NFTs, DeFi, and gaming. Dogechain was created by Dogecoin enthusiasts to expand the technical capabilities of the sprawling community. Also, the Dogechain community has sparked a discussion about the “significant burn of the total DC token supply,” with figures ranging from 50-80 percent. The discussion can be seen in the following Reddit post:
Using wrapped DOGE as gas fee, Dogechain launched on August 16. It skyrocketed to $0.0045 in two weeks with over $50 million in trading volume. It has a market cap of $47 million as of this writing. It ranks 424th by market value. Dogechain is listed on KuCoin and Gate.io exchanges. Each of these exchanges handles almost 40 percent of all Dogechain transactions. Apart from that, around 20 trading platforms use DC for trading. Dogecoin and Dogechain values do not remain correlated, except for a brief spike in Dogecoin value on the same day Dogechain was launched. Dogecoin has since moved between $0.07 and $0.06.
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