Dogecoin rises as Ethereum-compatible Dogechain picks up pace
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Dogechain is an Ethereum-compatible smart contract network built using Polygon Edge.
Dogechain is gaining momentum
Crypto’s original dog coin is back in fashion.
According to CoinGecko data, Dogecoin’s DOGE token is up 11.6% today, trading around $0.085 at press time. It briefly reached $0.088 before cooling off. The increase comes despite a decline in Bitcoin, Ethereum and the broader cryptocurrency market.
The biggest factor behind the rally is probably the growing momentum around Dogechain. Marketed as a “Layer 2 for Dogecoin”, Dogechain is an Ethereum-compatible smart contract network developed using the Polygon Edge framework. Users must connect DOGE to the network to access the applications, which has created buying pressure as momentum around the launch builds. When users successfully move DOGE to Dogechain, they receive a wrapped version of the token called wDOGE.
Dogechain went live earlier this month, but has received increasing attention from the market in recent days. Many prominent traders have taken to Twitter to comment on the network’s rapid growth today.
Bridging to dogechain is probably going to lose everything. Wish me luck.
— Bagsy (@Bagsy) 16 August 2022
Since the network now hosts several Uniswap-style automated market makers such as DogeSwap and DogeShrek, users can freely list tokens and trade between them if they have packed DOGE in their wallet. The project’s website also claims that the network will host NFTs and games. According to data from DEX Screener, Dogechain has seen $15 million in volume in the past 24 hours.
Dogecoin was one of the standout performers of the 2021 bull run, rising from fractions of a cent to $0.73 at an all-time high. Among the most vocal supporters was Elon Musk, who famously used Twitter to endorse the early cryptocurrency on several occasions. However, Dogecoin collapsed along with other dog-themed coins amid a period of market mania in May 2021 and failed to regain its highs. Even after the renewed interest in the project, it is still about 88% down from its peak.
Disclosure: At the time of writing, the author of this piece owned ETH, MATIC and several other cryptocurrencies.
