The beloved memecoin has just jumped 21% in the past week, leaving competitors like Shiba Inu, Pepe, and Bonk in the dust.
Now DOGE is trading at around $0.38, while those other coins are lagging behind with increases of 7%, 10%, and 14% respectively.
Alpha
Well, it turns out that big investors, or whales, are back in action, as main fuel behind this growth.
These whales scooped up 1.08 billion DOGE, worth about $413 million, and on the same day, a massive transfer of 399.9 million DOGE was moved from Binance to an unknown wallet.
This kind of transaction is often seen as a bullish sign since it suggests that these coins are being tucked away to cold storage rather than sold off.
Looking at the bigger picture, January has historically been a great month for Dogecoin, as it’s consistently been DOGE’s best-performing month, averaging an impressive 85% return.
In January 2021 Dogecoin skyrocketed by 711%. Even back in January 2014, it recorded a solid 269% return.
And let’s not forget April, which has also been kind to DOGE with spikes like 546% in 2021.
Iron fang
Alex Thorn from Galaxy Digital predicts that Dogecoin could hit $1 by 2025, after a potential surge of 170% and pushing its market cap to $100 billion.
Dogecoin will finally hit $1, with the world’s largest and oldest memecoin touching a $100bn market cap. However, the Dogecoin market cap will be eclipsed by the Department of Government Efficiency, which will identify and successfully enact cuts in amounts exceeding Dogecoin’s… pic.twitter.com/xcwRHhpMTn
— Galaxy (@galaxyhq) January 2, 2025
Dogecoin will finally hit $1, he said in Galaxy’s crypto predictions for 2025, but he cheekily noted that this market cap might be overshadowed by a new government agency called the Department of Government Efficiency (or DOGE), led by none other than Elon Musk and Vivek Ramaswamy.
Business
Adding to the hype, open interest in DOGE has shot up over 50%, meaning that more investors are jumping on board. DOGE’s open interest has surged from $2 billion to $3 billion in just five days.
And if that wasn’t enough to get you hyped, Spirit Blockchain Capital just announced plans to leverage its Dogecoin holdings for yield generation.
They’re looking to mimic MicroStrategy’s strategy with Bitcoin by deploying their DOGE reserves into decentralized finance protocols.
This could mean exciting yield-based products for both institutional and retail investors.
