Over the past week, a chest coin has quietly soared. Dogechain (DC), a derivative of SHIB, DOGE, rose from $0.000362 on Friday to as high as $0.00183. So what’s behind his rise?
SHIB, not DOGE: Dogechain rose the most
According to the data, Dogechain (DC) is up over 200 percent over the week. In the last 24 hours, it has gained close to 30 percent. In addition, it has experienced a jump of over 90 percent compared to a month ago. As Koindeks.com reported, Dogecoin was launched earlier this year to bring smart contract capabilities to the community. From $0.0004 on Friday, the price of Dogechain rose to $0.0018 during the night hours. It has settled at a price point not seen since Sept. Thus, it made a profit of 228 percent in seven days.
Koindeks.com As we reported, Dogechain (DC) recorded an all-time high at the end of August. But the increase in price is remarkable, as it has since lost 90 percent of its cost. Dogechain has been steadily dropping from $0.004 to $0.0004 during these two months. Dogechain is inspired by the highly recognized chest coin Dogecoin (DOGE). But other than that, it is an EVM compatible layer-2 Blockchain based on Polygon. With the Ethereum merger, Dogecoin has become the second largest proof-of-work (PoW) cryptocurrency by market cap. It is quickly lagging behind Bitcoin.
The issue of coin burning in the ecosystem
However, DOGE’s use cases are limited to storing and paying. Because of this, Dogecoin failed to grow in the fast-growing crypto segments such as NFTs, DeFi, and gaming. Dogechain was created by Dogecoin enthusiasts to expand the technical capabilities of the sprawling community. Additionally, the Dogechain community has sparked a discussion about the “significant burn of the total DC token supply,” with numbers varying in the middle of 50-80 percent. The discussion can be seen in the following Reddit post:
Using wrapped DOGE as the gas price, Dogechain launched on August 16. It skyrocketed to $0.0045 in two weeks, with a process volume of over $50 million. It has a market cap of $47 million as of this writing. It ranks 424th by market capitalization. Dogechain is listed on KuCoin and Gate.io exchanges. Each of these exchanges handles almost 40 percent of all Dogechain processes. Apart from that, around 20 trading platforms use DC to process. Dogecoin and Dogechain prices are not tied, except for a brief increase in Dogecoin value on the same day Dogechain was launched. Dogecoin has since moved between $0.07 and $0.06.