With memecoins consistently dominating the list of top weekly gainers, CryptoCrypto has observed a new trend unfolding.
Unlike previous cycles where WIF led the pack in daily gains, Dogecoin has now surged ahead, boasting a remarkable 16% increase over the week compared to WIF.
During the past week, Dogecoin has experienced a period of significant growth, with daily increases propelling its value to nearly $0.130 – a level unseen since July.
More notably, DOGE’s performance has closely followed that of Bitcoin, with both experiencing an upswing this week, solidifying Dogecoin’s position as a leading high-cap memecoin during bullish phases.
Further supporting this trend, the number of transactions involving over $100k using DOGE has hit a peak at 1.95k transactions, reflecting considerable interest from retail investors.
In essence, DOGE bulls have managed to recover a substantial portion of the losses incurred during the recent memecoin-driven “supercycle,” during which Dogecoin faced stiff competition from its counterparts.
Throughout this period, smaller memecoins and emerging players, spearheaded by WIF, leveraged market dynamics to challenge DOGE’s dominance.
Seizing Opportunities in DOGE’s Volatility
Nevertheless, spot traders have remained resilient, strategically entering the accumulation phase when DOGE faced downward trends in the market.
This strategic move echoes the approach previously witnessed with WIF, where traders absorbed selling pressure by capitalizing on the dip in prices to make purchases.
However, as WIF approached the $3 mark just three days ago, these traders have shifted their focus to a distribution phase, depositing millions of WIF tokens into exchanges, suggesting that $2.9 might have marked a temporary peak for WIF.
A similar scenario could unfold for DOGE. If BTC drops below $67k, it might trigger panic selling and sow seeds of doubt in the market sentiment.
Following the law of volatility, a risk-on atmosphere may redirect focus away from memecoins towards higher-cap altcoins.
In summary, the ongoing market cycle has brought about a notable transformation in the memecoin landscape, drawing significant liquidity towards DOGE.
This influx of capital from WIF to DOGE has helped reaffirm Dogecoin’s status as the largest memecoin by market capitalization. Nonetheless, certain obstacles still need to be navigated.