After Elon Musk hype: will Dogecoin conquer the DeFi and NFT market?

The Dogecoin cryptocurrency originally hit the market as a Bitcoin parody. Since then, memecoin has captured the hearts of the crypto community and Elon Musk fans. The Dogechain team now promises to reward loyal Doge followers with a new ecosystem similar to Ethereum in many respects.

Tesla founder and billionaire Elon Musk once claimed that Dogecoin has the potential to become a currency. With Musk’s Twitter acquisition, the cryptocurrency appears to have taken a step closer to that goal. But does the memecoin also manage to conquer the DeFi and NFT space? A crypto project called Dogechain aims to do just that – and may benefit from the hype Musk has unleashed over the past few days.

Elon Musk is causing the dogecoin hype again

Elon Musk repeatedly influenced the Doge course with his tweets – he was already committed to the cryptocurrency in 2020. Tesla, for example, accepts Doge as a form of payment thanks to Musk. In addition, Musk has already indicated Want to use Dogecoin as a means of payment on Twitter.

After Elon Musk’s Twitter takeover, it didn’t take long for the memecoin to start a new rally. Within a few days, Dogecoin price increased by over 100% and managed to eclipse Bitcoin this year. Early on the morning of November 1st, the billionaire reacted to the price increase that he probably helped cause – of course with a Dogecoin tweet causing the DOGE rate to rise again.

Should Musk really introduce Dogecoin as a means of payment on Twitter, the memecoin would theoretically have a large user base. However, Dogecoin, like Bitcoin, is only suitable as a means of payment to a limited extent – at least until now.

Dogechain: DeFi and NFTs for Dogecoin

The Dogecoin community is already working to prepare Dogecoin for the upcoming Web 3. For example, the Dogecoin Foundation is developing the first DeFi apps for Doge.

In August 2022, a new community-based Doge project was launched: Dogechain. Dogechain is its own Polygon-based blockchain that is compatible with the original Dogecoin blockchain and even Ethereum. The development team is also working on a crosschain bridge that can be used to send DOGE to other DeFi ecosystems.

Dogechain uses Proof-of-Stake, the same consensus mechanism as Ethereum, to settle transactions. This not only eliminates the environmentally harmful miningwhich uses Dogecoin to validate transactions. The transaction throughput should also be significantly higher than Dogecoins, which is currently only 30 transactions per second.

By comparison, the Visa network is said to be able to process around 24,000 transactions per second. So another blockchain like Dogechain may actually be the solution to Doge’s mass adoption.

Dogechain is also inherently smart contract enabled. As with Ethereum, developers are therefore able to create DeFi applications and even crypto games on Dogechain. Additionally, Dogechain even offers its own NFT marketplace.

In addition, Dogechain promises to remain a decentralized community project and offers its own governance procedures. Dogechain is working on a comprehensive Web 3 package for Dogecoin. So will Dogechain be the key to mass adoption of Doge?

With a market cap of only 20 billion US dollars, Dogechain is still a fairly small crypto project and, like all young projects, has a high chance of failure. Nevertheless, the Dogechain coin managed to be listed on several crypto exchanges such as KuCoin or Huobi. This shows that at least these exchanges have some confidence in the new project.

However, there was no official statement from the Doge developers or Elon Musk at the time the article was published.

Whether Dogechain really develops into an important and large Doge project is of course still open. However, Dogecoin’s current technical data shows that the Doge ecosystem still needs to develop further before the cryptocurrency can be seriously accepted as a means of payment. A community project might set the course for this – to the delight of all Doge-hodlers and, of course, Elon Musk.

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