Dogecoin Peaks, Encouraging Positive Speculation

By: Eva Baxter

Witnessing a significant volume increase, Dogecoin has hiked up by 17% in the past 24 hours, breaching the $0.21 threshold and marking its highest level since 2021. Aided by speculation around its usage on key social media platforms, Dogecoin has outpaced other leading cryptocurrencies, amassing returns of more than 40% in the past week.

Dogecoin's latest surge comes after Coinbase's announcement to add futures products for cryptocurrencies starting April 1st. This has helped Dogecoin's market cap to rank eighth amongst the top 100 cryptocurrencies. Analysts believe that the memecoin could potentially flip USD Coin (USDC), currently held in seventh place, given the minor gap between them.

On-chain analytics data clearly shows that Dogecoin's transaction volume has significantly surged, confirming the inflation in trading interest. A rising volume is usually a positive sign for the sustainability of any crypto rally, suggesting an upsurge in user interest. This trend could potentially bring in more fuel for the rally to continue. However, it also illuminates the crucial role of selling and buying in influencing transaction volumes, suggesting that the nature of this activity could be complex to discern.