Why is DOGE price rising?

The price of the Dogecoin crypto coin has shown a significant rise during this past week.  The market cap of the token is worth almost $1 billion. At the time of writing, its price stood at about $0.001457. This represents a 38% increase in its value compared to last week's closing price.

The Dogecoin price has soared this week amid growing interest in Polygon Edge-based network Dogechain, a bridge that allows investors to convert DOGE-heavy wDOGE and use non-tradable tokens (NFT) and products. Dogechain is built on Polygon Edge, which allows the project to launch a new blockchain network while providing full compatibility with Ethereum smart contracts and transactions, according to the developer documentation.

DOGE price has increased by around 10% over the past 24 hours, even as the broader crypto market remains largely stable. According to the data obtained, there was a 25% increase compared to last week and it is currently facing resistance at the price level of $ 0.088.

Why is Dogecoin rising?

Some of the price action in Dogecoin was driven by user demand for DOGE tokens used to bridge Dogechain. Launching itself as a tier 2 for Dogecoin, Dogechain uses the platform's base trading token and payment for fees on its network.

Dogechain is also set to distribute its own DC token to users of the platform over the air. The developers stated, “The Dogechain team is gearing up to rapidly roll out millions of $DC tokens to the Dogecoin community.”

Some crypto Twitter users speculate that users who have linked their tokens to Dogechain will be the recipients of the airdrop. It further increased the short-term demand for Dogecoin.

The Dogechain bridge is attracting investors who gravitate towards short-term price movements based on meme coins, many of which include “doge” or “shib” in their names. However, most of these tokens are speculative and do not represent a legitimate use case.

Data from on-chain trackers show that around $4.6 million in value has been locked in Dogechain-based products since its launch earlier this week. The data shows that more than 97% of it is locked on Dogechain-based exchange DogeSwap alone. Dogechain developers said Wednesday that since the network was created earlier this week, the network has seen more than 480,000 unique transactions and around 58,000 local wallets.