Dogecoin (DOGE), the first memecoin in the crypto space, witnessed a sudden surge in its number of transactions. DOGE creator Billy Markus took to Twitter and highlighted the transaction spike.
Moreover, the Dogecoin transactions spike was followed by a broader market recovery. While Bitcoin (BTC) registered gains of up to 2.7% in the last 24 hours, Ethereum (ETH) witnessed gains of up to 7.5% in the same time frame.
What’s pushing Dogecoin?
As per the data available on IntoTheBlock, there were 183 large transactions on the Dogecoin network in the last 24 hours. This amounts to a 21% increase. The smallest of these transactions was worth $100,000. Therefore, this points to the fact that the spike is not a result of small-scale retail investors.
Furthermore, some users have attributed the spike to the introduction of meme posting on the MyDoge self-custodian wallet. Fans began sending Dogecoin tips to people who were posting memes using the wallet. Many have taken to Twitter and shared that they witnessed a surge in notifications regarding the same.
Now, DOGE being a memecoin is fueled by social media sentiment. Dogecoin was created to be a meme and for spreading jokes. Hence, social popularity is one of the key pushers of the project. A project like DOGE relies heavily on online meme culture. And the absence of that will have an effect on its price. So, the inclusion of memes on the MyDoge wallet plays into the coin’s meme culture.
In addition, the project is planning on hosting its Doge hackathon event. Timothy Stebbing, Dogecoin Foundation Director, Tweeted a poll asking if developers were interested in participating in such an event.
However, the surge could also potentially lead to selling pressure. The market does not have the necessary volume to absorb another selling pressure.
On the other hand, Elon Musk, Dogecoin’s top influencer has revealed his intention of pulling out of the Twitter acquisition deal. This could also impact Doge’s price. Musk had revealed his intentions of including a Doge tip feature for the social media giant. However, with the deal now in question, this possibility might just go out the window. Regardless, it will be a big blunder for Doge fans who have been eagerly waiting for the deal to go through.
At press time, Dogecoin (DOGE) was trading at $0.066298, up by 3% in the last 24 hours.