DOGE prices spiked suddenly, coinciding with news of a potential link to the Ethereum network.
DogeCoin (DOGE) was seen by many as a technologically defunct asset, and a joke coin. However, there are indications DOGE may remain relevant as a fast and liquid asset. The latest news from the DogeCoin development team see the project expanded with a “Dogethereum” version, a smart contract allowing for a direct swap, making DOGE exist on the Ethereum network.
However, there are skeptics about the Dogethereum project, especially given that a smart contract would need to lock the user’s tokens.
In theory, Dogethereum should launch in the next few days. This would affect the market price of DOGE. The asset is also inherently volatile, which could allow for short-term pumps.
Making DOGE compatible with the Ethereum network will include it into the token ecosystem for rewards, micropayments, and easier sending. Right now, DOGE requires a proprietary wallet.
The only flaw found with this system is the fact that a centralized party may need to approve of the switch between assets, the issuing of new Dogethereum and the release of locked DOGE. The coins will not be burned or locked irretrievably. A degree of centralized control over tokens is not unusual in crypto, with projects like Bancor and KickCoin initiating a lockdown and a new token issue in cases of theft.
Soon after the news, the DOGE price had kept some of its gains, though moving away from the peak. DOGE is now at $0.00291, up around 12% in the past 24 hours. DOGE is supported by several large exchanges, including Bittrex and Poloniex, but also has a large exposure to the Asian market through Upbit. Around 30% of DOGE volumes are against Tether (USDT).
While DOGE is considered by many to be a joke coin, it is often used in transactions. One of the reasons is that DOGE is included in niche trading pairs on multiple exchanges. Moving DOGE is also cheap, hence the network often surpasses the Bitcoin Cash (BCH) network with its number of transactions. According to Blocktivity, DOGE is the seventh most active coin, with around 50,000 transactions per day recently, surpassing both BCH and Litecoin (LTC). DOGE is used in micropayments and tipping, due to its low fees.
Because of the unlimited supply, DOGE keeps a low price, and “the moon” is seen as levels above one cent. Recently, DOGE was added to Trezor, allowing for a user-friendly wallet interface and one of the most secure cold storage solutions on the market.
Neither the author nor the publication assumes any responsibility or liability for any investments, profits, or losses made as a result of this information. Cryptocurrency trading and investing are risky propositions, and market participants are advised to always conduct thorough research.