As 'whales' accumulated over 1 billion DOGE, Dogecoin's price increased by 21%, with analysts predicting its price could reach $1 by 2025.
Dogecoin has risen by 21% in the past week, outperforming major meme coins like Shiba Inu, Pepe, and Bonk.
As of the time of writing, DOGE is trading at $0.38. Shiba Inu (per capita HIV $0.00002376), Pepe (polyethylene imine $0.00002048), and Bonk (Bonk $0.00003389) have increased by 7%, 10%, and 14%, respectively.
The price of Dogecoin surged by 21% in the past week, reaching a high of $0.39. Source: CoinGecko
This surge is fueled by renewed interest from whale investors. On January 3, whale investors purchased over 1.08 billion DOGE, worth $413 million.
According to blockchain analytics platform Blockchair, on the same day, a transfer of 399.9 million DOGE (worth approximately $144.9 million) was moved from Binance to an unknown wallet. Such transactions are typically seen as bullish, indicating that as tokens move to private wallets, selling pressure is alleviated.
CryptoRank data shows that January has consistently been the best month for DOGE, with an average return of 85%—far exceeding any other month.
In January 2021, Dogecoin surged by 711%, while in January 2014, its return was 269%. April is the second-best month for Dogecoin, with a rise of 546% in April 2021 and 84.9% in 2018.
Galaxy Research: DOGE will rise to $1 in 2025
Galaxy Digital's research director Alex Thorn predicts that DOGE could surge by 170%, first reaching $1 and boosting its market cap to $100 billion.
He wrote in Galaxy's 2025 cryptocurrency forecast on January 2: 'Dogecoin will eventually reach $1, becoming the largest and oldest memecoin in the world, with a market cap of $100 billion.' 'However, Dogecoin's market cap will be surpassed by the Department of Efficiency, which will determine and successfully implement cuts exceeding Dogecoin's peak market cap in 2025.'
Recent developments for DOGE also follow the announcement by the newly elected President of the United States, Donald Trump, to establish a new government agency called the Department of Efficiency (DOGE), appointing Elon Musk and Vivek Ramaswamy as heads of the agency.
Meanwhile, DOGE's open interest has grown by over 50%, indicating increased investor participation. According to CoinGlass, DOGE's open interest has risen from $2 billion to $3 billion in the past five days.
Yield farming Dogecoin
On January 2, Canadian investment firm Spirit Blockchain Capital announced plans to utilize its holdings of Dogecoin to generate returns. This move is similar to MicroStrategy's Bitcoin reserve strategy, which leverages its BTC to create additional income streams.
Spirit Blockchain aims to deploy its DOGE reserves into decentralized finance protocols, potentially providing yield-based products to institutional and retail investors.