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Bitcoin’s recent ascent towards an all-time peak close to $90,000 has rekindled interest in the wider cryptocurrency market. As a result of its rise to a three-year high, Dogecoin has also emerged as a notable performer.
Data from CryptoSlate indicates that Dogecoin has surged by nearly 38% in the last 24 hours, reaching a year-to-date high of $0.44, before experiencing a slight pullback alongside Bitcoin. This increase represents Dogecoin’s strongest price performance since Elon Musk—referred to as the “Dogefather”—brought it into the limelight during his Saturday Night Live appearance in May 2021.
Due to this increase, Dogecoin is now the sixth largest cryptocurrency by market capitalization, boasting a valuation exceeding $53 billion. For perspective, this market cap positions it ahead of notable companies such as Nasdaq, Cummins, and Ford.
What’s driving Dogecoin’s rally?
The rally of Dogecoin seems to be driven by current market optimism and Musk’s connection to the memecoin.
In October, Musk suggested establishing a “Department of Government Efficiency” (DOGE) to enhance government spending under President Donald Trump’s administration. This whimsical acronym generated renewed excitement and focus among traders, propelling Dogecoin further into the mainstream spotlight.
On-chain data reinforces the notion of heightened retail activity. Crypto intelligence firm Santiment reports that in the past month, around 74,885 new wallets holding less than 100,000 DOGE have been created. It also noted that wallets owned by larger investors—termed “sharks” and “whales”—have decreased by a net 350 during this timeframe.
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Meanwhile, Santiment observed that an increase of 108 larger wallets in recent days likely contributed to Dogecoin’s latest price surge.
IntoTheBlock, another blockchain analytics firm, noted similar patterns. The firm highlighted that Dogecoin processed over six million transactions last week—the highest volume since February. This increase suggests that retail interest in Dogecoin is reviving, bolstering momentum in the memecoin market.
Growing institutional interest
While retail investors may be propelling this rally, institutional participants are also beginning to engage with Dogecoin.
On Nov. 5, Canadian company Spirit Blockchain Capital acquired Dogecoin Holdings, gaining access to essential assets—including intellectual property, an ETF platform, a developing Dogecoin payment gateway, and a cash reserve of $383,000.
Through this acquisition, Spirit Blockchain intends to introduce new products and facilitate the broader adoption of the memecoin, indicating a potential shift in institutional perspectives regarding the asset.
Furthermore, some market analysts speculate that the increasing interest in cryptocurrency could lead to a DOGE-related exchange-traded fund (ETF) as soon as next year, reflecting growing institutional acknowledgment of the asset.
The post Dogecoin soars 38% as renewed interest propels it multi-year high appeared first on CryptoSlate.
