The rise in Dogecoin’s price is due to a number of factors, including the recent plans to enable smart contracts on the Dogecoin network.
The price of Dogecoin has surged significantly in the past 24 hours, gaining nearly 10%. The surge has been fueled by several positive developments, including plans to launch a zero-knowledge virtual machine (zkVM) on the Dogecoin network to enable smart contracts. Dogecoin whales have also been actively accumulating the most important meme coin.
Why is the price of Dogecoin rising so fast?
There are several reasons for the surge in the price of Dogecoin. One of the reasons is the QED Protocol’s plan to enable smart contracts on the Dogecoin network. Elon Musk also continues to support Dogecoin, and whales are actively hoarding this top Dogecoin.
QED Protocol will enable smart contracts on the DOGE network
DOGE’s price has risen so quickly in part because of its sound fundamentals. QED Protocol announced a partnership with Nexus to launch a zero-knowledge virtual machine (zkVM) on the Dogecoin network. The move will enable smart contract functionality on the meme coin network and help it compete with Ethereum and Solana.
As part of the collaboration, QED Protocol and Nexus will help scale the network through zkVM and include tools that will enable developers to launch multiple decentralized finance (DeFi) projects on the network, including decentralized exchanges and non-fungible tokens (NFTs).
This move is undoubtedly positive for the price of Dogecoin as it will help increase the adoption of Dogecoin by adding more utility to the meme coin. This development is also timely as network activity on the Dogecoin network has been stagnant for some time. IntoTheBlock data shows that the number of new addresses on the network has remained sideways for the past three months.
Musk expresses support for DOGE
Another reason for the rise in Dogecoin’s price is Elon Musk’s continued support for the meme coin. Musk posted a photo of a dog behind Dogecoin and wrote “Father of Dogecoin.” Previously, he called himself the father of Dogecoin in a video.
The billionaire’s support for DOGE is the reason for constant speculation that the Musk-owned X-Platform may enable DOGE payments when its payment service goes live. If this happens, it will add more use cases for the most important meme coin.
It’s worth noting that Musk has said that Dogecoin will be accepted when future supercharger stations in Hollywood are finally operational. The world’s richest man also recently mentioned that he hopes Dogecoin will once again be accepted as a payment method for Tesla merchandise, suggesting that it may already be in the works.
Dogecoin whales are hoarding coins in large quantities
DOGE whales are also a factor in the rapid rise in the price of Dogecoin. Cryptocurrency analyst Ali Martinez recently shared data from the on-chain analysis platform Santiment, which showed that these whales accumulated more than 1.4 billion Dogecoin in 48 hours.
IntoTheBlockData also shows a surge in large transactions, indicating an accumulation of transactions among these Dogecoin whales. These investors traded 9.41 billion DOGE on September 26.
