Dogecoin surged 21% over the past week, outperforming other major meme coins such as Shiba Inu, Pepe, and Bonk, which rose by 7%, 10%, and 14%, respectively. The cryptocurrency reached $0.38, driven by renewed whale interest. On Jan. 3, over 1.08 billion DOGE worth $413 million was purchased by large holders. A transaction involving 399.9 million DOGE, valued at approximately $144.9 million, was also moved from Binance to an unknown wallet, signaling reduced selling pressure as coins were shifted to private wallets, according to blockchain analytics platform Blockchair.
January has historically been the best month for Dogecoin, with an average return of 85%, as reported by CryptoRank. In January 2021, DOGE skyrocketed by 711%, while January 2014 saw a 269% rise. April is the second-best performing month, with significant spikes including 546% in April 2021 and 84.9% in April 2018.
Open interest in Dogecoin has also increased by over 50% in the past five days, rising from $2 billion to $3 billion, according to CoinGlass. This indicates heightened investor activity and engagement. Alex Thorn, head of research at Galaxy Digital, forecasts that Dogecoin could reach $1 by 2025, resulting in a market capitalization of $100 billion. In his 2025 predictions, Thorn stated, “Dogecoin will finally hit $1, with the world’s largest and oldest memecoin touching a $100bn market cap.”
Adding to the buzz, U.S. President-elect Donald Trump announced the formation of a new government agency called the Department of Government Efficiency, or DOGE, to be led by Elon Musk and Vivek Ramaswamy. This development has drawn attention to the meme coin, further fueling its recent momentum.
Spirit Blockchain Capital, a Canadian investment firm, has announced plans to utilize its Dogecoin holdings for yield farming. The firm aims to deploy its DOGE reserves into decentralized finance protocols, potentially offering yield-based products for institutional and retail investors. This strategy aligns with MicroStrategy’s approach of leveraging Bitcoin reserves to generate additional revenue streams.
Dogecoin’s recent performance highlights its enduring appeal among investors and its potential for significant gains. With growing interest from whales, a strong historical track record in January, and new strategic initiatives by major players, DOGE remains a prominent player in the cryptocurrency market. These factors combined have positioned Dogecoin as a leading contender among meme coins, with analysts and investors closely monitoring its trajectory.
