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What is Dogechain, the secret sauce behind Dogecoin’s 15% price rally?

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FXStreet in Market News 12 250678
August 19, 2022 00:26

content provided with permission by FXStreet

  • Dogecoin holders can ‘bridge over’ DOGE and use it for DeFi, NFTs and more on Dogechain, a new blockchain platform. 
  • Dogechain is a layer-2 scaling solution for DOGE built on leading Ethereum sidechain Polygon Edge. 
  • DOGE yielded nearly 30% gains to holders in the past two weeks, analysts predict a recovery in the meme coin. 

Dogechain is Dogecoin’s layer-2 scaling solution. Unlike typical scaling solutions, Dogechain was developed by a team on Polygon Edge. Dogechain’s launch acted as a fuel for bullish sentiment among DOGE holders. 

Also read: Three reasons why meme coins Dogecoin and Shiba Inu are hot again

Dogechain: Dogecoin’s layer-2 scaling solution 

Through Dogechain, a newly-launched blockchain platform DOGE users can bridge over their tokens and use them for DeFi, NFTs, and more. Interestingly Dogecoin creators and the Dogecoin Foundation’s developers are not involved in the Dogechain project. 

Dogechain is a non-traditional layer-2 scaling solution for Dogecoin, built on Polygon Edge. A modular and extensible framework, Polygon Edge allows developers to build Ethereum-compatible blockchain networks, sidechains and general scaling solutions. The non-traditional scaling solution increases the social dominance and mentions of the meme coin across social media platforms. Based on data from LunarCrush, a crypto intelligence tracker, social activity peaked in the Dogecoin network. Proponents argue that a short-term Dogecoin rally is likely. 

Dogecoin price yielded 15% gains to holders over the last week. The idea of a layer-2 solution for DOGE is considered the equivalent of the creation of DeFi protocols, NFTs and dApps on Dogecoin. 

Just as Cardano’s Vasil hard fork and Ethereum’s Merge are game changers for the network, Dogechain is considered a catalyst for DOGE price. Dogecoin started out as a meme coin, after a spike in utility and adoption. DOGE is now accepted across merchants worldwide, through payment processors like NowPayments. With Dogechain, that advances a few steps, further boosting the project’s utility value. 

Dogecoin price is ready for recovery

Analysts argue that Dogecoin price is ready for a recovery. Analysts at FXStreet believe Dogecoin price is likely to flip bullish if specific conditions are met. For more information, check the video below: