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Bloomberg’s crypto lead, Michael Regan, explains why Dogecoin outperformed Bitcoin this bull run, highlighting some factors behind DOGE’s remarkable rally.
Dogecoin has continued to turn heads in the crypto market with its incredible performance, which surpassed other top assets like Bitcoin (BTC). Notably, Bloomberg highlighted Dogecoin’s recent surge, noting that the token’s price has increased by 50% in the past five days due to investors’ enthusiasm for crypto under President-elect Donald Trump.
Factors Driving Dogecoin Rally
While Dogecoin’s recent rally might come as a surprise given its meme origins, Michael P. Regan, the global team leader of cryptocurrencies at Bloomberg, believes DOGE is more serious than people think, suggesting that some factors could be fueling the asset’s value.
Payment Utility
He mentioned that users pay lower fees when transacting with Dogecoin than with other cryptos, such as Bitcoin. According to Regan, Dogecoin’s low fees have made it a preferred payment method for international payments. He cited how Venezuelans living outside their country could send funds at a cheaper rate to their loved ones using DOGE.
Additionally, the Bloomberg exec mentioned how people have been developing payment apps that accept DOGE, referencing New York-based Williamsburg Pizza as an example.
Elon Musk Effect
Meanwhile, Regan attributed the recent Dogecoin rally to Elon Musk’s influence, explaining how the X owner’s affinity for internet memes aligns with DOGE’s meme nature.
Musk advocated for creating a new agency under the Donald Trump-led administration, the Department of Government Efficiency (D.O.G.E).
Although the agency aims to cut tax expenses by streamlining government operations, many Dogecoin investors believe it would bolster Dogecoin’s value, potentially driving DOGE’s price after Donald Trump’s victory.
High Volatility
Explaining why Dogecoin has registered more gains in the past few days than Bitcoin, Regan used the analogy of how certain stocks surge more whenever the S&P 500 sees a slight increase.
Similarly, he suggested that DOGE has greater volatility than Bitcoin, which has seen it rally more anytime the premier crypto asset moves, and slump harder on the back of a drop.
Regan believes Dogecoin outperformed other assets like Bitcoin due to its payment utility, Elon Musk’s influence, and high volatility.
Dogecoin Recent Performance
Although Dogecoin has yet to register a new all-time high like Bitcoin has done in the current bull run, the token has seen significant gains of over 200% in the past month.
Notably, DOGE rose from a monthly low of $0.1105 to $0.4359. Its market cap also increased to $62.96 billion from $16.43 billion in the same timeframe. This elevated Dogecoin to rank as the sixth-biggest cryptocurrency by market cap, surpassing XRP (XRP) and USD Coin (USDC).
At press time, Dogecoin has lost some of its gains due to increased selling pressure witnessed across the broader market. DOGE is trading at $0.3693, down 15.27% from its recent peak of $0.4359, registered on November 12.