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Dogecoin (DOGE) Price Jumps Over 37% amid Prospects of System Updates Hinted by Elon Musk

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by Steve Muchoki · 3 min read
Dogecoin (DOGE) Price Jumps Over 37% amid Prospects of System Updates Hinted by Elon Musk
Photo: Depositphotos

A major setback for the Dogecoin network is the fact that it cannot support Dapps, which have significantly fueled the DeFi bull run.

Dogecoin (DOGE) price jumped over 37% today to trade around $0.55 at the time of reporting. Although not surprising with the meme coin, the Dogecoin community received good news from Tesla Inc (NASDAQ: TSLA) CEO Elon Musk that he is working with DOGE developers for a system update.

“Working with Doge devs to improve system transaction efficiency. Potentially promising,” Musk said.

Immediately after the announcement, Dogecoin’s market capitalization spiked by $10 billion according to TradingView. However, some were keen to ask who are the Dogecoin developers as the project has remained untouched since 2015.

Adam Black CEO and cofounder Blockstream.com said that “Doge is years unmaintained, a literal joke copy of the outdated version of bitcoin with long-known vulnerabilities. Factually #Bitcoin doesn’t consume incremental power per transaction. And has layer2s like lightning and @Liquid_BTC which amplify capabilities.”

Dogecoin Price and Further Prospects for DOGE

A major setback for the Dogecoin network is the fact that it cannot support Dapps, which have significantly fueled the DeFi bull run.

One of the key issues likely to be addressed is to add security features to allow global businesses to accept it as a means of payment. Musk embarked on a journey to give Dogecoin value not only by speculation but also by giving it market utility.

Recently, Musk announced that Dogecoin would be used to pay for a space mission. As the first cryptocurrency to space, the asset attracted the attention of future prospects and utility beyond earth.

Dogecoin has received huge retail demand that has prompted cryptocurrency exchanges to list the asset with various denominations. After Binance listed Dogecoin earlier this month, Coinbase has announced plans to list Dogecoin on its trading platform in the next six to eight weeks.

More listings reciprocate to higher market liquidity that significantly dictates its gender health. There has been a concern over the Dogecoin inflation rate, whereby a block reward is handed over every minute. Essentially, 600,000 new Dogecoin every hour, 14.4 million new tokens every day, and close to 5.26 billion new coins every year.

The asset has an infinite supply, which means that there is high selling pressure from the suppliers. In comparison to other digital assets like Bitcoin, Litecoin, and Binance Coin that have a finite supply, Dogecoin has a huge supply and is largely controlled by whales.

A recent blockchain study indicated one Doge address controls approximately 28% of the circulating supply, around 129.5 billion.

Further research pointed to that approximately 12 Doge address accounts controls around 68% of the total circulating supply. Hereby leaving only 4% of the circulating supply to the public retail traders.

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Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies. Mythology is my mystery! "You cannot enslave a mind that knows itself. That values itself. That understands itself."

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