- DOGE surges 4% with Elon Musk tweet amid memecoin frenzy.
- DeFi regulations could boost DOGE, paving the path to ETF eligibility.
In light of the recent crypto bloodbath stirring the crypto market, Dogecoin [DOGE] was amongst a few altcoins that spiked a little amidst the market crash.
The dog-themed cryptocurrency saw a slight uptick of over 4% in its price following a recent tweet from Elon Musk.
The memecoin craze
Recently, Musk humorously compared mainstream media to characters from “Monty Python’s Life of Brian,” who have been struggling to report on Dogecoin’s rise amongst the top cryptocurrencies.
This playful portrayal highlighted the nature of Dogecoin’s success and the influence of social media culture on financial markets.
As the market turns on the path to recovery, social media is abuzz with memecoin mania, as highlighted by @ApeCryptos in his recent X post,
“U Can’t Stop #Meme Coins.”
Shedding light on the regulatory actions against DeFi projects, Will Clemente, co-founder of Reflexivity Research in conversation with Laura Shin, host of “Unchained” podcast, saw this as a potential benefit for meme coins.
He said,
“I think the one that has the highest likelihood could actually be Dogecoin because it’s a commodity right? I mean I would argue that it’s a much purer commodity profile than like Ethereum.”
Clemente believes that if DeFi projects face shutdowns or regulatory hurdles, investors might turn to meme coins as an alternative investment option.
Additionally, he outlines that the regulatory environment could pave the way for meme coins to gain traction and potentially become eligible for inclusion in cryptocurrency ETFs.
What lies ahead for DOGE?
Notably, Even though DOGE has seen losses recently, there are still many holders who refuse to waver.
On-chain data reveals a notable 18% decline in value over the past week, yet Dogecoin’s long-term investors stand strong while navigating the market with resilience.
Moreover, insights from IntoTheBlock reveal that a staggering 81% of DOGE wallet addresses are still basking in profitability, even amid the recent downward spiral.
Echoing similar sentiments, Crypto Daily Trade Signals, added,
“#Dogecoin will do this soon $1 #Doge coming faster than you think!!”
Ergo, despite DOGE currently treading water in its consolidation phase, its potential to shift market sentiments from bearish to bullish remains positive.
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