Why is Dogecoin (DOGE) gaining attention?

On Tuesday, meme coins such as Dogecoin (DOGE) gained traction as part of a broader market rally. The DOGE token surged over 7%, while its one-day volume jumped more than 95%.

Market leaders like Bitcoin (BTC) and Ethereum (ETH) also surged.

The global crypto market rose 1.41% to US$2.16 trillion, and the trading volume increased by 6.31% to US$104.31 billion in the trailing 24 hours to 6:53 am ET on Tuesday.

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What is Dogecoin (DOGE)?

Dogecoin (DOGE), based on the popular internet meme “doge”, features a Shiba Inu on its logo. It is an open-source digital currency created by Portland-based Billy Markus and Australia-based Jackson Palmer. It was forked from Litecoin in December 2013.

The creators considered the meme-coin a fun and light-hearted crypto, hoping it would fascinate the core Bitcoin audience. It is one of the favorite cryptos of Tesla CEO Elon Musk. He keeps tweeting about the crypto regularly.

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Dogecoin, however, differs from the proof-of-work mechanism of Bitcoin in several ways, like using Scrypt technology. Its block time is 1 minute, and its total supply is uncapped, meaning there are no max limitations to the number of DOGE coins that can be mined. It can be mined through solos or by joining a mining pool.

The DOGE token is used as a tipping system on social media to reward quality content creators. It is available on exchanges like Binance, OKX, Bybit, etc.

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Why is it gaining traction?

The coin has been rallying after Musk announced a major stake in Twitter Inc. The Tesla chief said he bought a 9.2% stake worth US$2.88 billion in the social media company.

Musk is one of the famous supporters of digital currencies. He and Tesla had Bitcoin (BTC) worth over US$2 billion as of 2021-end.

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Tesla has begun accepting payments in DOGE at its online merchandise stores and charging stations. This news also had bumped up Dogecoin prices. In May 2021, Elon Musk tweeted that he had been working with Dogecoin developers to improve the project’s system efficacy.

Although there is no direct relation between Musk’s Twitter stake and the latest Dogecoin rally, experts believe it may have been a key factor, particularly after the buzz on social media.

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                                                     Source: *Data provided by CoinMarketCap.com

Bottom line:

The DOGE coin was priced at US$0.1539 at 6:50 am ET on April 5, up 7.10%, while its volume for the last 24 hours surged 95.21% to US$2.61 billion. It has a market cap of US$20.41 billion, and its fully diluted market cap is US$20.39 billion.

Its total and current circulating supply are 132.67 billion. The token gave a return of 24.82% over the past 30 days.

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