DOGE outpaced XRP on Sunday, with the meme cryptocurrency surging 14% in the early hours of Sunday to push its market capitalization past XRP as the seventh-biggest cryptocurrency. The token reached beyond the 23 cent level, the first time since November 2021, to result in a market capitalization of $34 billion compared to $33.3 billion of XRP. Dogecoin rose 55% in the week in extremely speculative trading with high volumes. Market analysts say that this could continue and may even see DOGE challenge the bigger cryptocurrencies.
DOGE Increase in Market Cap Could Push It Higher
This surge in market capitalization of Dogecoin could see it place in striking distance of USDC, a popular stablecoin. USDC, with its market capitalization of $37 billion, is just above DOGE, and many analysts believe them could flip it within days if the present momentum continues. Indeed, as interest in the meme cryptocurrency goes through the roof, this asset class continues to capture the attention of both retail investors and traders alike.
Elon Musk’s Endorsement Fans Dogecoin Frenzy
Much of Dogecoin’s recent rally has been attributed to the influence of Elon Musk, with rumors that he could take a role in government if Donald Trump were to win a second term. Musk is reportedly floating a potential “Department of Government Efficiency” short-form D.O.G.E.-a pitch that has fired up speculation on social media and retail trading channels. This hypothetical linkage of them mainstream political discussions has led to a revival of interest in the token, as evidenced by the increase in buying volumes and frequency of trades.
Record High Open Interest in Dogecoin Futures
The open interest in its futures has also similarly skyrocketed to its price. Reports indicate this is up 33% in just the last week to more than 8.33 billion DOGE – valued at roughly $1.8 billion at today’s prices. This uptick strongly suggests that institutional and retail investors are positioning for the continuation of Dogecoin’s rise, with market sentiment decidedly skewed toward bets on its upside.
Dogecoin-Inspired Meme Tokens See Gains
Interestingly, Dogecoin’s success has drawn interest in related meme tokens. An Ethereum-based parody, D.O.G.E token has surged over 600% since the beginning of October, although its market capitalization remains small at $160 million. The gains show the broader implications of Dogecoin’s market vigor, reaching even to minor, meme-based assets.
Traders Anticipate Further Rally
Traders expect the persistence of the dogecoin rally due to the influence of Elon Musk and market optimism. Indeed, meme coins are volatile, but this time Dogecoin is above 23 cents and may further continue up with more comments coming from Elon Musk as he may continue to engage in discussions about cryptocurrency and even on innovative ideas.
