Dogecoin Becomes 8th Largest Cryptocurrency After Adding $1 Billion In Market Cap

Dogecoin continues to establish itself as the largest meme coin by market cap, displaying signs of renewed enthusiasm from time to time. This week, the meme-inspired cryptocurrency added over $1 billion to its market cap, making it the 8th largest crypto. This resulted in an increase of over 10% for Dogecoin, taking its market cap to over $10 billion in a matter of hours.

Dogecoin pushes Solana to number 9

Dogecoin has come a long way since its creation as a joke. Due to the hype on social media, Mem has risen up the cryptocurrency rankings to become the 8th largest cryptocurrency by market cap. Dogecoin price recently broke above the $0.070 resistance level to reach $0.076. As a result, its market capitalization increased by more than $1 billion, from $9.67 billion to $10.66 billion.

Although its price has dropped to $0.074 at the time of writing, Dogecoin still has a market capitalization of $10.35 billion, pushing Solana to the 9th spot. Solana, on the other hand, is down 7% on the 7-day time frame and has lost over $1.4 billion in market cap.

Why is the price increasing?

A large part of Dogecoin’s past success has come mostly from social media hype and the promotion of it by a few influential people and groups. A big influence is billionaire Elon Musk. Ever since Musk started tweeting about the meme coin, Dogecoin has attracted more attention from crypto investors and his tweets praising the crypto have led to a big jump in interest and price.

DOGE price retraces to $0.73 following 10% surge | Source: DOGEUSD on Tradingview.com

The latest spike in Dogecoin price appears to have come from rumors of Tesla maintaining the cryptocurrency in the source code of its payment page. Dogecoin is the second cryptocurrency to be accepted by the automobile manufacturer after Tesla added bitcoin as an option in 2021. However, Tesla has since discontinued the option to pay with bitcoin and removed the option in the source code of its payment page.

Currently, Tesla has removed “bitcoin” in the source code of its payment page, but still retains “dogecoin”. pic.twitter.com/BQrRtuTN8Z

-Wu Blockchain (@WuBlockChain) 21 July 2023

DOGE Price Prediction

Dogecoin (DOGE) is currently trading at $0.07378, having ranged between $0.065 and $0.075 for the past week. If the $0.075 resistance is broken, we could see DOGE rising to its February price high of $0.096.

Interestingly, the asset has bounced off the $0.060 support several times since August 2022, making it an important support for the Mem coin. Therefore, a break below $0.060 could drop DOGE to its lowest point in more than a year.

While Dogecoin lacks the smart contract capabilities of bitcoin or ethereum, it has won over an enthusiastic community of supporters and has been relatively stable over the years. However, Dogecoin is still a very volatile investment, and its value is largely based on social media hype rather than real-world utility.

Featured Image from iStock, Chart from Tradingview.com