Dogecoin Rises as Ethereum Compatible Dogechain Gains Pace

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Dogechain is an Ethereum-compatible smart contract network built with Polygon Edge.

Dogechain gains momentum

Crypto’s original dog coin is back in vogue.

According to CoinGecko data, Dogecoin’s DOGE token is up 11.6% today, trading around $0.085 at the time of writing. It briefly touched $0.088 before cooling. The surge comes despite a downturn 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 bridge DOGE to the network to access its applications, which has led to buying pressure as momentum builds around the launch. When users successfully move DOGE to Dogechain, they receive a packaged version of the token called wDOGE.

Dogechain went live earlier this month, but has been gaining more and more attention from the market in recent days. Many leading traders have brought to Twitter to comment on the rapid growth of the network today.

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 DOGE packed into their wallets. 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 last 24 hours.

Dogecoin was one of the standout performers of the 2021 bull run, rising from fractions of a cent to $0.73 at its all-time high. One of its most outspoken supporters was Elon Musk, who famously used Twitter to endorse the early cryptocurrency on multiple occasions. However, Dogecoin collapsed during 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% below its peak.

Disclosure: At the time of writing, the author of this piece owned ETH, MATIC, and several other cryptocurrencies.

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