Amid the ongoing meme coin frenzy, Dogecoin has emerged as the frontrunner, captivating investors with a staggering rally in the DOGE price. The crypto’s recent price surge has solidified its position as a top gainer in the meme coin market.

Meanwhile, the jump in its price and market cap has helped it to surpass Cardano (ADA) recently, leaving many intrigued. So, let’s delve into the factors driving Dogecoin’s meteoric rise this week.

Why Dogecoin Reigns Supreme Amid Meme Coin Frenzy?

The overall crypto market went through tumultuous trading last week, due to several hovering uncertainties. The significant outflow in the U.S. Spot Bitcoin ETF, the SEC’s investigation on Ethereum’s securities status, and others have dampened the investors’ sentiment.

However, despite the looming concerns, Dogecoin has maintained an upward momentum through the week, suggesting the increasing confidence of the investors. Although there could be a flurry of reasons behind the DOGE price rally, let’s look at some key reasons.

Coinbase Announcement Of Dogecoin Futures Listing

Coinbase, the prominent crypto exchange, filed with the CFTC on March 7, to introduce cash-settled futures for Dogecoin (DOGE), Litecoin, and Bitcoin Cash. This move has ignited optimism, particularly among Dogecoin enthusiasts, citing its lasting popularity.

Meanwhile, Coinbase highlights Dogecoin’s long-lasting appeal, attributing its transformation from a meme to a fundamental element in the cryptocurrency industry as a key factor in bolstering market trust. Notably, the exchange aims to launch DOGE futures and other contracts by April 1, emphasizing the growing confidence in Dogecoin’s position.

Elon Musk’s Recent Comment

In a recent statement, Tesla CEO and X owner Elon Musk hinted at the potential of Dogecoin as a payment option for Tesla cars, stirring excitement within the crypto market. Musk’s comment, reported by CoinGape Media in mid-March, has fueled speculation and optimism among investors.

Meanwhile, Elon Musk has also promoted the meme-coin earlier and is known for his support of the crypto. Considering, the world’s richest man’s interest in Dogecoin signals a potential significant development in its adoption, further solidifying its position in the cryptocurrency landscape.

Also Read: Toncoin (TON) Price Drops As Spain Bans Telegram

X Securing More Payment Licenses In the US

X Payments, led by Elon Musk, secures three additional money transmitter licenses across US states this week, insiders reveal. Now licensed in 22 states, X Payments aims to roll out payment features this year.

Notably, Musk previously hinted at mid-2024 for payment features to go live during a discussion with Ark Invest CEO Cathie Wood. However, following the recent announcement, the Dogecoin price surged, reflecting Musk’s influence. In addition, speculations arise on Dogecoin potentially becoming a payment option on X, marking another milestone for the cryptocurrency.

Soaring Whale Activity

The Dogecoin price’s recent rally gained momentum as prominent crypto analyst Ali Martinez reported significant whale activity. On March 21, Martinez highlighted that Dogecoin whales purchased 25 million DOGE over 72 hours, amounting to approximately $3.75 million.

Source: Ali Martinez, X

Meanwhile, these substantial purchases indicate growing investor confidence in Dogecoin, contributing to its upward trajectory. Whale movements, coupled with positive developments, have bolstered interest and propelled Dogecoin’s value in the crypto market.

Bottom line

Dogecoin’s recent rally indicates a bullish sentiment, with its Open Interest (OI) surging significantly. CoinGlass data reveals a remarkable 11.69% increase in Dogecoin OI over the past 24 hours, reaching $1.35 billion, demonstrating heightened market interest.

Meanwhile, top crypto exchanges like Binance and Bybit witnessed substantial OI spikes over the last 24 hours with jumps of 12.96% and 11.03%, respectively. In addition, despite volatile trading in meme coins, the Dogecoin price’s significant surge over the past week underscores growing investor confidence in this leading meme coin.

Also Read: Cathie Wood Offloads $123M Coinbase & Robinhood Stocks This Week

The post Dogecoin Leads Meme Coin Frenzy This Week, Here’s Why appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am