Dogecoin is leading the meme coin craze this week, and here’s why
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Dogecoin has dominated the meme coin craze this week, with its value surging as market interest increases and influencers endorse it. Dogecoin has emerged as a front-runner in the ongoing memecoin craze, attracting investors with a stunning rise in Dogecoin price. The cryptocurrency’s recent price surge has solidified its position as the biggest gainer in the meme coin market.
Meanwhile, its rise in price and market capitalization has helped it surpass Cardano (ADA) recently, sparking the interest of many. So, let’s take a deeper look at what’s driving Dogecoin’s meteoric rise this week. Why is Dogecoin dominating the meme coin craze?
The entire cryptocurrency market experienced turbulent trading last week due to some uncertainties. The sharp outflow of US spot Bitcoin ETFs and the SEC's investigation into the securities status of Ethereum have dampened investor sentiment.
However, despite looming concerns, Dogecoin has maintained its upward momentum this week, indicating growing investor confidence. While there could be a range of reasons behind the rise in DOGE’s price, let’s look at some of the key reasons.
Coinbase's announcement on the launch of Dogecoin futures
Coinbase, a well-known cryptocurrency exchange, filed documents with the U.S. Commodity Futures Trading Commission (CFTC) on March 7 to launch cash-settled futures for Dogecoin (DOGE), Litecoin, and Bitcoin Cash. The move ignited optimism, especially among Dogecoin enthusiasts, citing its enduring popularity.
Meanwhile, Coinbase highlighted Dogecoin’s enduring appeal and its transformation from a meme to a fundamental element of the cryptocurrency industry as a key factor in increasing market trust. Notably, the exchange plans to launch DOGE futures and other contracts by April 1, highlighting the growing confidence in Dogecoin’s status.
Elon Musk's recent comments
In a recent statement, Tesla CEO and X owner Elon Musk sparked excitement in the crypto market by hinting at the potential of Dogecoin as a payment option for Tesla cars. CoinGape Media reported Musk’s remarks in mid-March, sparking speculation and optimism among investors.
Meanwhile, Elon Musk also promoted the memecoin earlier and is known for his support for cryptocurrencies. Considering that the world's richest man's interest in Dogecoin marks a possible major development in its adoption, further consolidating its position in the cryptocurrency space. X receives more payment licenses in the U.S.
Elon Musk-led X Payments received three more money transmission licenses in various U.S. states this week, according to insiders. X Payments is now licensed in 22 states and plans to launch payment features this year.
It is worth noting that Musk had previously hinted in a discussion with Ark Invest CEO Cathie Wood that the payment feature would be available in mid-2024. However, following the recent announcement, the price of Dogecoin has soared, reflecting Musk's influence. In addition, there is speculation that Dogecoin could become a payment option on X, marking another milestone for the cryptocurrency.
Whale Watching
The recent upswing in Dogecoin’s price has gained momentum as well-known cryptocurrency analyst Ari Martinez reported significant whale activity. On March 21, Martinez highlighted that Dogecoin whales purchased 25 million DOGE, worth about $3.75 million, in 72 hours.
At the same time, these large purchases indicate growing investor confidence in Dogecoin, driving its upward trend. The activity of whales, coupled with positive developments, boosts interest and drives the value of Dogecoin in the crypto market.
Dogecoin’s recent rise indicates bullish sentiment, with its open interest (OI) surging significantly. CoinGlass data shows that Dogecoin OI has increased significantly by 11.69% in the past 24 hours to $1.35 billion, indicating strong market interest.
Meanwhile, OI on top cryptocurrency exchanges like Binance and Bybit has surged significantly over the past 24 hours, up 12.96% and 11.03% respectively. In addition, despite the volatile trading of memecoins, Dogecoin’s sharp rise in price over the past week highlights investors’ growing confidence in the leading memecoin.
