Strongly Rising Dogecoin and Ethereum Compatible Dogechain Gaining Ground

According to data from CoinGecko, Dogecoin’s DOGE token is up 11.6% today, trading around $0.085 at press time. It briefly hit $0.088 before stabilizing. This rise comes despite a decline in Bitcoin, Ethereum, and the cryptocurrency market in general.

Probably the biggest factor behind this rally is the growing momentum around Dogechain, touted as a “Layer 2 for Dogecoin“. The Dogechain is an Ethereum-compatible smart contract network developed using the Polygon Edge framework. Users must transfer DOGE over the network to access its apps, which has created buying pressure as momentum surrounding its launch builds. When users successfully transfer DOGE to Dogechain, they receive a wrapped version of the token called wDOGE.

The Dogechain was launched earlier this month, but has been gaining increasing market attention over the past few days. Many traders commented on the rapid growth of the network today.

As the network now hosts several Uniswap-like automated market makers, such as DogeSwap and DogeShrek, users can freely list tokens and trade them with each other if they have DOGE wrapped in their wallet. The project’s website also claims that the network will host NFTs and games. According to data from DEX Screener, Dogechain saw a trading volume of $15 million in the last 24 hours.

Dogecoin was one of the best performers of the 2021 bull wave, dropping from fractions of a cent to $0.73 at its all-time high. Among her staunchest supporters is Elon Musk, who has taken to Twitter to support her on several occasions. However, Dogecoin crashed amidst a period of market madness in May 2021 and failed to regain its highs. Even after renewed interest in the project, it is still down about 88% from its peak.

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