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Ask CryptoVantage: What’s DogeChain?
The newly-launched Dogechain project claims to put Dogecoin’s no-utility narrative on its head and is looking to unlock the full potential of the Doge meme coin.
For years now, the lack of real-world utility has been one of the main issues that Dogecoin opponents have with the meme coin. They claim that Dogecoin investors can only do one thing, and that is to Hodl their Doge bags while hoping that their holdings will one day shoot to the moon.
Dogechain is looking to change that and bring real utility to Dogecoin. But what is Dogechain, how does it work and most importantly, will it succeed?
Digging into DogeChain
According to Dogechain’s white paper, the project’s aim is to improve the coin’s utility by expanding the use cases for Dogecoin. This blockchain platform is a non-traditional layer-2 solution that gives Dogecoin holders the possibility to send their holdings over to Dogechain and receive Wrapped Dogecoin(wDoge) in return, a proprietary token that pegs its value on actual Dogecoin. They can then use their wDoge to interact with NFTs, dapps, games, and the ever-expanding DeFi ecosystem.
It is considered to be a non-traditional layer-2 solution because of the fact that Dogechain does not operate directly on top of the existing Dogecoin blockchain. Instead, it was developed on Polygon Edge, which is one of the most recent protocols released by Polygon.
Dogechain has been up and running since August 2022 and has since seen tremendous growth. In just a few days following the launch, the Dogechain team claimed that users had already created more than 58,000 wallets and performed more than 480,000 transactions.
Two months later, the chain registered 245,000 wallets and over 50 million transactions. It must be said: this kind of activity and growth, especially during a bear market, are impressive, to say the least.
Is Dogechain Affiliated With Dogecoin?
No, it is most definitely a separate project. After the hype around Dogechain, the original developers of Dogecoin, Jackson Palmer and Billy Markus, and the Dogecoin foundation, felt it was necessary to point out that Dogecoin was not the one who launched the Dogechain project.
In fact, they tweeted a co-signed statement making it clear that there is absolutely no affiliation with Dogechain.
Despite having no affiliation with Dogecoin itself, Dogecoin hodlers could still be charmed by the fact that this project allows them to mint NFTs, create tokens, host decentralized applications, and unlock new opportunities in the future.
Adding to the fun is the Dogechain website which makes plenty of lofty promises, such as giving people free Dogechain tokens when they withdraw their Dogecoin tokens from the crypto and stock trading app Robinhood. They also state that they are preparing to airdrop millions of Dogechain tokens to the Dogecoin community. Will all these promises be kept? Time will tell!
It is still early days for the Dogechain story, so it is unclear whether this Proof-of-Stake blockchain project can maintain its momentum and will be able to build further on the meme coin spirit that took off 9 years ago.
Will Doge Make the Next Bull Market?
Despite Dogecoin’s checkered past, it has become a crypto coin that has fought its way into the top 10 cryptocurrencies by market cap, implemented a series of upgrades aimed at making it a more capable and attractive cryptocurrency, all while hitting an all-time high of almost 73 cents USD in May of 2021.
The Doge also came in third place as the most popular cryptocurrency with more than 107 million views on CoinMarketCap in 2021. For reference, Shiba Inu, another dog meme coin, took first place that year, while Bitcoin came in the second position with 145 million views.
And who can forget the business magnate Elon Musk, who endorsed Dogecoin as being better suited for transactions than Bitcoin, with much higher potential? Yes, he went there.
In short, and thanks to the backing of global influencers like Musk and Snoop Dogg, the internet meme Dogecoin is no longer the laughingstock of the class. So it stands a better chance of making it to the next bull run than many of its competitors.
