While Dogecoin has a large daily increase, its price surges significantly for the following reasons:

Celebrity Effect and Community Frenzy

- Musk's Support: Tesla CEO Elon Musk claims to be the Dogecoin godfather, having publicly supported it multiple times. His tweets have led to fans and investors flocking to buy, creating strong purchasing power.

- Community Cohesion: Dogecoin attracts supporters with its Shiba Inu meme image and relaxed atmosphere. Related activities on social media in 2024 have strengthened community cohesion, boosting its market value.

- Emotional Resonance: During tough economic times, Dogecoin's approachable and humorous image resonates with the public's emotions, making it a choice for those seeking to cope with stress and pursue wealth appreciation.

Technological Innovation and Application Expansion

- Performance Improvement: In 2024, the Dogecoin development team completed upgrades to the underlying blockchain architecture, enhancing transaction speed, network stability, and reducing transaction costs, winning recognition from professional investors.

- Rich Application Scenarios: Its application scenarios are continuously expanding from online shopping and game platform top-ups to cross-border remittances and NFT markets, and it has also become collateral in the DeFi field, broadening its value boundaries.

- Big Tech Collaboration: In 2024, several well-known e-commerce platforms and payment institutions like Amazon and Starbucks accepted Dogecoin as a payment method, providing strong backing for its popularization and value recognition.

Market Environment and Investor Sentiment

- Macroeconomic Impact: In 2024, global financial markets experienced turbulence, traditional investment channels saw declining returns, inflationary pressures intensified, and investors sought safe-haven and appreciation avenues, leading to increased attention on Dogecoin as an alternative asset.

- Deepening Investor Education: With the popularization of blockchain knowledge and enhanced investor education, the public's awareness and acceptance of cryptocurrencies have improved, recognizing Dogecoin's value support and growth potential, laying a foundation for its surge.

- Market Speculation and FOMO Psychology: Discussions on social media, KOL recommendations, and rapid short-term price increases have created an investment atmosphere, encouraging more people to join the investing crowd, forming a positive feedback loop that drives up coin prices.

High Trading Activity

- Increased On-chain Activity: According to Coinglass, Dogecoin's on-chain activity has increased, with spot trading volume having surged by 45% in just 4 hours, reaching $830 million, indicating high trader attention and driving up prices.

- Active Whale Investors: Data from IntoTheBlock shows a significant increase in Dogecoin transactions worth between $100,000 to $1 million and over $1 million, with large buyers enhancing market confidence and driving prices up.

Strong Speculative Attributes

- Low Price: Dogecoin's price is relatively lower compared to Bitcoin and others, providing a low entry barrier for retail investors, attracting more investors, especially when Bitcoin prices are high, leading many retail investors to shift to Dogecoin.

- Growth Space Expectations: Although Dogecoin has limited appreciation potential and is not a store of value, its large quantity, low cost, and ease of doubling make it appealing. With major platforms gradually accepting it, its potential commercial value is viewed positively, attracting investors to buy the dip.