Dogecoin rallies 28% as institutional investors grow bullish on DOGE utility


  • Mark Cuban, billionaire investor, states that Dogecoin has a strong use case as a payment method.
  • Analysts convinced by the surge in DOGE's on-chain activity and exchange trading volume, expect the memecoin to rally to $0.40.
  • New investors have a bullish outlook, increasing their share of DOGE supply from 9% to 25% in over a year.

Analysts predict that Dogecoin, among other altcoins, is expected to lead the ongoing cryptocurrency rally. 

Dogecoin's increasing adoption and surge in on-chain activity points to a long rally

The Shiba Inu-themed cryptocurrency, Dogecoin, is on a bullish streak, and the price is up nearly 28% in the past year. The project started as a meme in 2013, has interestingly gained traction and on-chain data suggests that DOGE trader sentiment is bullish.

Mark Cuban, American billionaire entrepreneur and owner of the Dallas Mavericks, recently said that Dogecoin is the 'strongest' cryptocurrency as a medium of exchange. He shared the two strengths of the memecoin in his recent tweet.

Cuban argued that over 5.2 billion Dogecoins are minted every year, putting it above Bitcoin in terms of utility, since Bitcoin supply is limited to 21 million.

On-chain analysts agree with Cuban's bullish outlook since DOGE trading volume on Coinbase noted a spike last week.

Cryptocurrency trader and analyst behind the Twitter handle @Pentosh1 tweeted:

DOGE's current price action is attracting more traders, daily active users of Dogecoin are currently nearly 32,000. This number is moving with a price based on the following chart. 

Dogecoin daily active users

Daily active users of Dogecoin

Though correlation is not causation, the spike in active users coincides with the rise in Doge's social media dominance and indicates a more robust bullish response from users. 

Interestingly, the increased active users are adopting Dogecoin faster than expected, at levels unseen since the 2017 bullrun. Philip Gradwell, the chief economist at Chainalysis, shared details of adoption by new users in his recent tweet. 

Analysts at FXStreet have set a price target of $0.40 for Dogecoin, and at the time of writing, the crypto is trading at the $0.32 level. A potential 26% gain is likely, and the downside is expected to be relatively limited. 

 

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