Dogecoin continues to cement itself as the largest meme coin by market cap, showing signs of renewed enthusiasm from time to time. This week, the meme-inspired cryptocurrency added more than $1 billion to its market capitalization, making it the eighth-largest cryptocurrency. This was the result of Dogecoin rising more than 10%, increasing its market capitalization to over $10 billion in a matter of hours.
Dogecoin pushes Solana to number 9
Dogecoin has come a long way since its creation as a joke. Fueled by the hype on social media, the meme cryptocurrency has rocketed up the rankings to become the eighth largest cryptocurrency by market capitalization. Dogecoin price recently crossed the $0.070 resistance level to reach $0.076. As a result, more than $1 billion was added to its market capitalization, rising from $9.67 billion to $10.66 billion.
Although its price is now down to $0.074 at the time of writing, Dogecoin still has a market cap of $10.35 billion, pushing Solana up to #9. Solana, on the other hand, is down 7% in a 7-day period and has lost over $1.4B in market cap.
What is pushing the price?
A large part of Dogecoin’s past success comes mainly from social media hype and some influential people and groups promoting it. One big influence is billionaire Elon Musk. Ever since Musk started tweeting about the meme coin, Dogecoin has garnered more attention from crypto investors and his tweets praising the crypto have led to huge spikes in interest and price.
DOGE Price Pulls Back to $0.73 After a 10% Rise | Source: DOGEUSD on Tradingview.com
The latest increase in the price of Dogecoin seems to stem from the rumors that Tesla will keep the cryptocurrency in the source code of its payment page. Dogecoin is the second cryptocurrency to be accepted by the automaker after Tesla added Bitcoin as an option in 2021. However, Tesla has since discontinued the option to pay with Bitcoin and removed the option in the source code of its checkout page.
Currently, Tesla has removed “bitcoin” from its checkout page source code, but still retains “dogecoin.” pic.twitter.com/BQrRtuTN8Z
— Wu Blockchain (@WuBlockchain) July 21, 2023
DOGE Price Prediction
Dogecoin (DOGE) is currently trading at $0.07378, trading between $0.065 and $0.075 over the past week. If the $0.075 resistance is broken, we could see DOGE rally to its February price of $0.096.
Interestingly, the asset has bounced off the $0.060 support level multiple times since August 2022, making it significant support for the meme coin. So a break below $0.060 could see DOGE drop to its lowest point in over a year.
While Dogecoin lacks the scarcity of Bitcoin or the smart contract capabilities of Ethereum, it has gained an enthusiastic community of supporters and has become relatively stable over the years. However, Dogecoin remains a highly volatile investment and its value is largely based on social media hype rather than real world utility.
Featured Image from iStock, Chart from Tradingview.com
This post Dogecoin Becomes 8th Largest Cryptocurrency After Adding $1 Billion To Market Capitalization
was published first on https://www.newsbtc.com/news/dogecoin/dogecoin-becomes-8th-largest-crypto/