Dogecoin rallies higher as excitement builds for the EVM-compatible Dogechain network
(Kitco News) - Dogecoin (DOGE), the cryptocurrency ecosystem’s oldest and most beloved meme coin, continued its bullish surge higher on Tuesday despite weakness in the broader market.
Data from TradingView shows that the price of DOGE rallied 21% from a low of $0.075 in early trading to hit an intraday high at $0.0917 before pulling back to support at $0.085 near midday.
DOGE/USD 4-hour chart. Source: TradingView
The main source of momentum propelling DOGE higher is growing excitement among the crypto faithful for Dogechain, an Ethereum-compatible smart contract network that was built using the Polygon Edge framework.
Dogechain is being marketed as a “layer 2 for Dogecoin” and will allow users to bridge DOGE onto the network in order to access its applications. Once a user successfully bridges DOGE to Dogechain, they will be given an equal amount of wrapped Dogecoin (wDOGE) which is a 1:1 representation of DOGE on the Dogechain network.
The need to have DOGE bridged to Dogechain has created positive buying pressure for the token, which has helped contribute to its 38% rise in price over the past week.
The new Ethereum virtual machine (EVM) compatible network officially went live earlier in August and has recently begun to gain traction after several prominent traders and influencers started to discuss the platform with their Twitter followers.
Dogechain is probably the best meme site I've seen.$DOGE utility w/ DeFi & NFTs, no VC backing (very important) and $DC will be airdropped to wDOGE & RobinHood users.— McKenna (@Crypto_McKenna) August 15, 2022
Think this will be huge. Dogeswap on the chain where DOGE is the native asset to gamble on shitcoins. pic.twitter.com/LWsuQLC9cC
Thanks to the newfound smart contract capabilities available to the Dogecoin community, Dogechain has already seen the launch of several Uniswap-style automated market makers including DogeSwap and DogeShrek where users can trade tokens that have launched on the Dogechain network.
According to the project’s website, the network has plans to eventually host nonfungible tokens (NFTs) and blockchain games. Data provided by DEX screener shows that Dogechain has processed $17 million in volume over the past 24 hours.
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Additional protocols in the Dogecoin ecosystem
A second factor helping to provide a boost to DOGE has been the release of the Libdogecoin protocol, a project that will enable users to design products that align with the Dogecoin network standards. Libdogecoin allows developers to design protocols for the network without needing a node, helping to bring more utility to the network.
Recently, a developer named Shafil Alam announced that he had compiled Libdogecoin for iOS and Android devices, helping to expand the reach and accessibility of the protocol. This will enable the community to build more mobile applications that are designed specifically for the Dogecoin ecosystem.
Libodogecoin has already functioned as a foundation for the development of new projects on Dogecoin, helping to get projects like RadioDoge and GigaWallet up and running as part of a push for the mass adoption of DOGE.