Dogecoin’s 50% price increase in five days is due to low transaction fees and increasing utility, especially for cheaper international payments. Dogecoin (DOGE) has increased by 50% in five trading days, attracting attention from investors. Experts say that this increase is mainly due to the outstanding advantages that Dogecoin brings.
Low Transaction Fees and Practical Applications
Michael Regan, Bloomberg's Head of Crypto, points out that low transaction fees are a factor that has helped Dogecoin outperform Bitcoin during this bull run.
Dogecoin is popular for cross-border transactions, especially in economically disadvantaged areas.
For example, Venezuelans can use DOGE to send money back home with low fees.
Many businesses, like Williamsburg Pizza in New York, also accept DOGE thanks to its fast transactions and low fees.
This advantage could help Dogecoin continue to be chosen as a payment method by large organizations.
The Influence of Elon Musk
Dogecoin's recent price surge has also been fueled by support from Elon Musk, who has long been a proponent of DOGE.
Musk recently proposed the creation of a “Department of Government Efficiency” (D.O.G.E.) under President Donald Trump, attracting attention from the Dogecoin community.
Musk's past endorsements have helped Dogecoin surge in price, and many investors expect him to continue to drive the coin's long-term success.
High Volatility, High Returns
Dogecoin also benefits from high volatility, which helps it grow faster than Bitcoin during bull market conditions.
Over the past month, DOGE has increased by 200%, from $0.1105 to $0.4359, bringing its market capitalization to $62.96 billion, surpassing assets like XRP and USD Coin.
However, this volatility also brings high risks, and experts warn that it can be both an advantage and a destabilizing factor.
Strong Growth Forecast
Many analysts, such as Ali Martinez, predict that Dogecoin could continue to rise strongly. If it breaks the current resistance levels, the DOGE price could reach $2.40, and if the upward momentum continues, the price target could be as high as $18.
Martinez, based on technical models, indicates that Dogecoin could continue its parabolic rise, as it did in previous times, when it recorded an 8,933% increase in 2017-2018 and 15,534% in 2020-2021.
