- 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.
The point about DOGE that people miss is that DOGE's imperfections and simplicity are it's greatest strengths. You can only use it to do 2 things: Spend It or HODL It. Both are easy to understand. And it's cheap to buy. Which makes it a community anyone can join and enjoy.
— Mark Cuban (@mcuban) August 15, 2021
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:
Just saw the $DOGE volume on Coinbase the past week and my god
— Pentoshi Wont DM You (@Pentosh1) August 15, 2021
There have been some massive buyers 200m USD a day of Doge in volume on CB alone (DIrect fiat on ramp) starting a week ago
While I'm not trading it to $1+ I do think it will get there. My goal is .40-.45 pic.twitter.com/VBtdAWtdjk
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.
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.
On-chain, Doge is being adopted by new investors at a level not seen since the late-2017 bull market, with new investors increasing their share of supply from 9% in July 2020 to 25% in August 2021 pic.twitter.com/W782qNhyMW
— Philip Gradwell (@philip_gradwell) August 16, 2021
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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
MANTA suffers 4% pullback after unlocking tokens worth $40 million
Manta Network (MANTA) unlocked over 8% of its circulating supply on Thursday. The unlocked tokens were airdropped and distributed in public sale, according to data from Tokenunlocks.
XRP struggles to recover as lingering Ripple lawsuit could reach Supreme Court, former SEC litigator says
The SEC vs. Ripple potential showdown at the Supreme Court is likely, says former SEC litigator Ladan Stewart. XRP Ledger calls developers, businesses and investors to build on the blockchain, extending Apex 2024 registration until April 30.
Bitcoin Layer 2 Merlin chain TVL climbs 20%, defying broad market correction
Merlin chain’s TVL added 20% this week, and crossed $800 million on Thursday. Bitcoin Layer 2 assets noted double-digit losses in the past week. Stacks, Elastos, SatoshiVM, BVM are hit by a correction as Bitcoin hovers around $61,000.
If Bitcoin restarts bull run, these altcoins are likely to explode Premium
If Bitcoin’s consolidation ends and the bull run resumes, altcoins are likely going to trigger a massive rally. Last cycle’s hot tokens like SOL, AVAX, WIF, ONDO, etc., could see renewed enthusiasm.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.