Dogecoin: Layer 2 Dogechain is up 228% – Investment opportunity of a lifetime?

• Dogechain has soared 300 percent since Friday after declining steadily in the last two months.
• Dogechain had lost over 60 percent of its value since reaching an all-time high back in August.

Recent data shows that the value of Dogechain has spiked more than 300 percent in the last seven days. Also, it rose over 10 percent over the previous 24 hours, according to the same data. Dogechain is Dogecoin’s EVM-compatible proof-of-stake blockchain.

The Dogecoin community launched Dogechain earlier this year to add smart contract features to the Dogecoin ecosystem. The new rise represents a 75 percent surge in the last 30 days. Its price rose from $0.0004 to $0.00176 between Friday (October 21, 2022) and Sunday (October 23, 2022). This price surge indicates that it rose by 228 percent in one week.

Now, it trades at a price not seen since September 12. This price surge is remarkable, given that Dogechain’s (DC) value had declined over 60 percent since setting a new peak price in the last week of August. Moreover, Dogechain’s price has dropped steadily since that time to $0.0004 from $0.004.

While the inspiration for the design of Dogechain was from the more popular Dogecoin, the two are different. The former is a proof-of-stake cryptocurrency, while Dogecoin is a proof-of-work cryptocurrency. Following Ethereum’s switch to become a proof-of-stake (PoS) network, Dogecoin became the second largest proof-of-work (PoW) digital asset based on market cap.

It is only second to Bitcoin, which remains the leading digital asset among all cryptocurrencies, whether PoW or PoS. However, Dogecoin’s use cases are limited to settling payments and as a store of value. The meme-themed crypto lacks the utility of cryptos such as Ethereum. For instance, it is irrelevant in fast-rising crypto sectors such as gaming, NFT, and DeFi.

Dogechain explosive growth

Dogecoin advocates led the creation of the Dogechain to extend the functionalities of the fast-growing Dogecoin ecosystem. The Dogechain community is discussing a burn approach to the network’s tokens (DC). Suggestions range from 50 percent to 80 percent burn of the DC token’s total supply in circulation.

Dogechain went live on August 16, soaring in value to $0.0045 with more than $50 million in trading volume in less than fourteen days. It accepts wrapped DOGE as gas fees while its market cap is $46 million, according to Coingecko data.

While DC can be sold or bought on over 20 crypto platforms, Gate.io and KuCoin handle nearly 40 percent of all Dogechain transactions. Also, there is no correlation between Dogechain and Dogecoin’s prices. However, it is worth noting that Dogecoin’s price rose to $0.086 on the launch day of Dogechain.

Dogecoin’s price has since traded at around $0.06 to $0.07. Since its launch in august, Dogechain has accomplished two incredible milestones. It has reached 50 million transactions and has 244,000 unique wallets.

This huge feat indicates a fast rise in the network’s adoption rate. It also proves the community’s interest in growing the new chain.