The cryptocurrency Dogecoin originally hit the market as a Bitcoin parody. Since then, the memecoin has captured the hearts of the crypto community and Elon Musk fans. The Dogechain team is now promising to reward loyal Doge followers with a new ecosystem similar in many ways to Ethereum.
Tesla founder and billionaire Elon Musk once claimed that Dogecoin has the potential to become a currency. With Musk’s acquisition of Twitter, the cryptocurrency seems to have moved one step closer to that goal. But can the memecoin also conquer the DeFi and NFT space? A crypto project called Dogechain wants to do just that – and may be benefiting from the hype Musk has unleashed in recent days.
Elon Musk is once again sparking the Dogecoin hype
Elon Musk repeatedly influenced the price of the Doge with his tweets – he was already committed to the cryptocurrency in 2020. For example, Tesla accepts Doge as a means of payment thanks to Musk. In addition, Musk has already indicated Want to use Dogecoin as a means of payment on Twitter.
After Elon Musk’s takeover of Twitter, it didn’t take long for the memecoin to start another rally. Within a few days, the price of Dogecoin rose by more than 100% and managed to eclipse Bitcoin this year. In the early morning of November 1, the billionaire reacted to the price increase, which he probably helped to cause – of course with a Dogecoin tweet that made DOGE’s price rise again.
Should Musk really introduce Dogecoin as a means of payment on Twitter, the memecoin would theoretically have a large user base. However, like Bitcoin, Dogecoin has only limited use as a means of payment – at least so far.
Dogechain: DeFi and NFTs for Dogecoin
The Dogecoin community is already preparing Dogecoin for the upcoming Web 3. For example, the Dogecoin Foundation is developing the first DeFi apps for Doge.
In August 2022, a new community-based Doge project was launched: Dogechain. Dogechain is its own Polygon-based blockchain that is compatible with the original Dogecoin blockchain and even Ethereum. The development team is also working on a cross-chain bridge that can be used to push DOGE to other DeFi ecosystems.
Dogechain uses Proof-of-Stake, the same consensus mechanism as Ethereum, to settle transactions. This not only eliminates environmentally harmful miningthat Dogecoin uses to validate transactions. Transaction throughput should also be significantly higher than Dogecoin, which is currently only 30 transactions per second.
In comparison, the Visa network could process about 24,000 transactions per second. So a second blockchain like Dogechain could well be the solution to Doge’s mass adoption.
Dogechain is also inherently smart contract enabled. As with Ethereum, developers can therefore create DeFi applications and even crypto games on Dogechain. Moreover, Dogechain even offers its own NFT marketplace.
In addition, Dogechain promises to remain a decentralized community project and offer its own governance procedures. Dogechain is working on a comprehensive Web 3 package for Dogecoin. So will the Dogechain be the key to Doge’s mass adoption?
With a market cap of only $20 billion, Dogechain is still a fairly small crypto project and, like all young projects, has a high probability of failure. Nevertheless, the Dogechain coin managed to get listed on several crypto exchanges such as KuCoin or Huobi. This shows that at least these exchanges have some confidence in the new project.
However, there was no official statement from the Doge developers or Elon Musk at the time the article was published.
Whether Dogechain really grows into an important and large Doge project is of course still open. However, current Dogecoin technical data shows that the Doge ecosystem still needs to develop further before the cryptocurrency can really be accepted as a means of payment. A community project may be able to set the course for this – much to the delight of all Doge hodlers and of course Elon Musk.
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