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Dogecoin has gained traction due to Elon Musk’s support, bringing it to the fore. Compared to other coins, it saw a speedy rise as the tech giant Tesla announced its acceptance for merchandise and other purchases. The rise has resulted from investments from Musk followers and crypto speculators. Though Dogecoin has seen a significant rise in popularity, it was lacking in some regards. Dogechain has provided a solution to these lacking areas.
These changes included areas like decentralized finance, Non-fungible tokens, and games. Now, a group of developers not related to the Dogecoin blockchain has brought a solution to it. They claim that their L2 solution will give Dogecoin a new life and supercharge it. Analysts also predict an enhancement in the utility of Dogecoin as the result of the new change.
Here is a brief overview of Dogechain and what solutions it brings to the previously existing blockchain Dogecoin.
A Layer-2 network for DOGE
The start of Dogecoin was as a meme coin meant to entertain users, but it has gradually gained significance. As said above, it gained traction with the use for purchases from Tesla; it might have a lot more to explore. A new layer-2 blockchain has been launched for Dogecoin, named Dogechain. Even though the official Twitter account of Dogecoin retweeted a tweet about its no affiliation with Dogecoin, it has attracted users.
The mentioned platform can be used to bridge users’ Dogecoin holding and then receive wDOGE. Wrapped Doge (wDOGE) can be used for transactions related to DeFi apps, games, or future NFT projects. The users can purchase new tokens minted on Dogechain. According to DEX Screener, more than 21 million tokens have been transacted on Dogechain.
According to a tweet, Dogechain claims that users have created more than 58,000 wallets on the network. The short period of five days has seen tremendous activity on this network. Also, the network claims that since its launch, more than 480,000 transactions have taken place on it. Though called an L2 for Dogecoin, Dogechain is not a true L2 as it is based on Polygon Edge.
Impacts of Dogechain on Doge network
The newly launched L2 network for Doge is also compatible with Ethereum Virtual Machine. Thus, users can run applications and games on it that have been created for Ethereum. Like the Doge community’s usual air, the newly-launched platform’s website has the same meme-like air. Interestingly, the Ethereum-based rival token for Doge, Shiba Inu, is also set to launch its L2 soon.
The announcement of Dogechain has resulted in the speedy rise of Dogecoin. The latest data shows that it has surged 10% over the past 24 hours. The last week also saw a trend for increase as it added 25%. The changes came in a situation when the remaining market had shown no big change. The reason for the rise of Doge prices is its increased demand for bridging over to Dogechain. The latter uses Dogecoin as the trading token and payment of fees on its network.
Data from on-chain trackers show that a total of $4.6 million worth is locked in Dogechain-based products. Dogeswap is the top shareholder in this regard, as 97% of the total value is locked there. Thus, the launch of this L2 for Dogecoin might start a new meme season in the crypto world.
Conclusion
A Polygon-based blockchain network that will serve as the Layer-2 network for Dogecoin has been launched. Though the official accounts for Dogecoin and its parent foundation have claimed no affiliation with the new venture, it has attracted considerable traffic. The launch of this L2 might enhance the prospects for Dogecoin.