Dogecoin surged 21% over the past week, outperforming other major meme coins such as Shiba Inu, Pepe, and Bonk, which rose 7%, 10%, and 14%, respectively. The cryptocurrency reached $0.38, driven by renewed interest from whales. On January 3, over 1.08 billion DOGE worth $413 million was bought by large holders. A transaction involving 399.9 million DOGE, valued at approximately $144.9 million, was also moved from Binance to an unknown wallet, signaling a reduction in selling pressure as coins were moved to private wallets, according to blockchain analysis platform Blockchair.
January has consistently been the best month for Dogecoin, with an average return of 85%, as reported by CryptoRank. In January 2021, DOGE soared 711%, while in January 2014, it saw a 269% surge. April is the second best performing month, with significant peaks including 546% in April 2021 and 84.9% in April 2018.
Open interest in Dogecoin has also increased by more than 50% in the past five days, from $2 billion to $3 billion, according to CoinGlass. This indicates increased investor activity and engagement. Alex Thorn, head of research at Galaxy Digital, forecast that Dogecoin could reach $1 by 2025, resulting in a market cap of $100 billion. In his predictions for 2025, Thorn said: “Dogecoin will finally reach $1, with the world’s largest and oldest memecoin reaching a market cap of $100 billion. »
Adding to the buzz, United States President-elect Donald Trump announced the creation of a new government agency called the Department of Government Effectiveness, or DOGE, which will be led by Elon Musk and Vivek Ramaswamy. This development has brought attention to the meme coin, further fueling its recent momentum.
Spirit Blockchain Capital, a Canadian investment firm, has announced plans to use its Dogecoin holdings for yield farming. The company aims to deploy its DOGE reserves in decentralized financial protocols, potentially offering yield-based products to institutional and retail investors. This strategy aligns with MicroStrategy’s approach of leveraging Bitcoin reserves to generate additional revenue streams.
Dogecoin’s recent performance highlights its enduring appeal among investors and its potential for big gains. With growing interest from whales, a strong track record in January, and new strategic initiatives from major players, DOGE remains a leading player in the cryptocurrency market. These factors combined have positioned Dogecoin as a top contender among meme coins, with analysts and investors closely monitoring its trajectory.