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Baby Doge Coin is off to a stellar start in 2023. The price of BABYDOGE increased +345% year-to-date (YTD) thanks to a combination of increased DEX volume, DeFi activity, and occupying top spots on Binance’s trending list (and that’s without Baby Doge Coin being listed for trading on Binance!).
These positive metrics have propelled Baby Doge Coin into the list of the 80 largest crypto assets by market capitalization, and could very well help it become the next meme coin to enter the cryptocurrency top 50.
What’s driving the Baby Doge Coin price rally? Latest Baby Doge Coin news
The broader crypto market cap has experienced a wave of renewed interest in 2023. This attention has brought new attention to all market sectors, including meme coins, and, subsequently, Baby Doge Coin (BABYDOGE).
In fact, BABYDOGE price has increased by +345% since the start of the year, which ranks the meme coin as the second biggest YTD gainer. Comparatively, Dogecoin (DOGE) and Shiba Inu (SHIB) gained +16% and +48%, respectively, since the start of the year.
So what has been driving Baby Doge Coin's meteoric rise? Let’s take a closer look at the main factors.
Launch of the community token burn portal
The Baby Doge Coin team announced yesterday that the community burn portal is launching on February 13.
The team explained that for every token that will be burned by the community, an additional 5 tokens will be burned via the new portal. “If community burns 1 quadrillion tokens through the portal we will burn 5 quadrillion more,” the team wrote.
Our burn portal goes live tomorrow!
— BabyDogeSwap.com LIVE (@BabyDogeCoin) February 12, 2023
We will burn 5 tokens for each token burned through the community burn portal through April 1st ! ? pic.twitter.com/fB5grC5uvH
Increased DeFi activity and DEX volume
The user and trading activity in the Baba Doge Coin ecosystem is on a clear uptick as of late. According to blockchain analytics site DeFi Llama, the total value locked (TVL) in the ecosystem increased from $28 million to $62 million in the last month and a half.
Baby Doge Coin TVL increased more than doubled since the start of 2023. Source
In addition, BabyDogeSwap currently ranks as the 4th largest decentralized exchange (DEX) on the BNB Chain, with a 24-hour trading volume of $4.2 million. It is worth noting that the DEX trails pretty far behind the leading BSC-based exchange PancakeSwap, which facilitated $224 million in trading volume in the same time period.
Trending on Binance
Last week, the popularity of Baby Doge Coin became apparent on Binance, the biggest cryptocurrency exchange in the industry. The meme coin seized the number one spot among trending assets on February 9.
In addition, BABYDOGE is the fourth most popular coin on Binance in the past month, trailing the likes of Bitcoin and Shiba Inu.
We have entered the top 90 cryptos and soon perhaps the top 80 #BabyDoge ? pic.twitter.com/RputaqIOQA
— BabyDogeSwap.com LIVE (@BabyDogeCoin) February 11, 2023
Interestingly, Baby Doge Coin is the only coin on Binance’s crypto trending page without being listed for trading on the platform.
Baby Doge enters the top 80. Could it become the next meme coin to enter the top 50?
On Saturday, the Baby Doge Coin team highlighted that BABYDOGE entered the crypto top 90 and said that the meme token could climb into the top 80. Just a day later, the meme cryptocurrency claimed the 80th spot on the crypto market cap leaderboard.
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The quick rise begs the question of whether the cryptocurrency could climb higher in the future. As things currently stand and from a purely market valuation perspective, the price of Baby Doge Coin would have to increase by over 100% for its market cap to reach the valuation of a top 50 crypto project (Tezos, currently the 50th biggest crypto, has a market cap of $945 million).
Let’s examine the Baby Doge Coin price prediction to see whether such a price increase is in the cards.
Baby Doge Coin prediction for 2023-2024: Significant volatility ahead
Our algorithm forecasts significant volatility in BABYDOGE’s future.
According to the CoinCodex price prediction algorithm, the price of Baby Doge Coin is predicted to increase by over +15% in the next month. The algorithm predicts that the price will plunge after the March peak and face significant volatility in 2023 and 2024. Ultimately, the price of BABYDOGE is predicted to decrease by -66% by September 2024.
The bottom line – Is Baby Doge Coin the next meme coin like Shiba Inu?
The rally Baby Doge Coin has mounted in 2023 has certainly been impressive. In fact, some investors see the coin as a direct competitor to Shiba Inu due to its ecosystem of decentralized trading solutions and deflationary token supply.
Additionally, several investors hope that Baby Doge Coin will eventually reach 1 cent, which would make early investors incredibly rich. It is worth noting that due to the existing token burn mechanics and newly introduced community burn program, BABYDOGE could potentially reach and even surpass the 1 cent milestone, whereas Shiba Inu pulling off a similar feat seems borderline impossible.
Not to toot our own horn, but we’ve ranked Baby Doge Coin as the number one meme coin to explode in 2023 in an article last year, where we also discussed other similar projects. Ultimately, nobody knows what the future holds, and the best we can do is make educated guesses.
On that note, if you want to broader your investment strategy with crypto assets that show great promise, but are not necessarily meme-based, we suggest you examine our selection of 10 coins that show bullish promise this year.