While investors are actively switching to alternative cryptocurrencies, the meme-movement veteran Dogecoin shot up, adding as much as 40% in a week! On July 22, DOGE reached its highest point since the beginning of February and was among the growth leaders, outperforming 94 of the 100 largest cryptocurrencies in terms of dynamics.
Now DOGE ranks 8th in the global crypto rating with a market valuation of almost $40 billion. According to CoinGecko, at 13:30 Moscow time, its rate fluctuated around $0.26.
What’s behind the growth?
According to Zach Pandl, head of research at Grayscale, the sharp price jump is not due to fundamental improvements in the project, but rather to growing interest in risk assets in general. The launch of the GENIUS stablecoin law, signed by Donald Trump on July 18, has become a catalyst for positive sentiment in the crypto market, including in the meme coin sector.
Investors seek new targets
Arca’s Katie Talati notes that after taking profits on Bitcoin and Ethereum, traders often move to more volatile and less expensive coins. In this regard, DOGE is an excellent candidate: liquid, recognizable, traded on many sites, and even the favorite of Elon Musk.
DOGE in institutional focus
Additional interest in Dogecoin is fueled by news from major players. For example, the mining company Bit Origin, whose shares are traded on Nasdaq, has already purchased DOGE for $40.5 million and announced its intention to create a reserve of coins up to $500 million.
Dogecoin ETF already in development
In addition, the SEC received applications to launch ETFs focused on Dogecoin. Bloomberg analysts give a 90% chance that these funds will get the green light. This could dramatically increase the availability of DOGE to institutional investors and simple traders.
The ceiling is not broken yet
Although the current growth is impressive, Dogecoin is still far from its previous records. At the end of 2024, it traded at $0.40, overtaking over 60% of companies from the S&P 500 index in terms of capitalization. So the potential for growth remains – especially if new news feeds continue to rock the market.