Dogecoin Gains 17%
In a week marked by surging Dogecoin’s (DOGE) price, crypto enthusiasts are abuzz over the potential start of a broader altcoin rally. As Dogecoin, the beloved “memecoin,” led the top 100 with a 17% gain on Thursday, many analysts focused on its impact on the market’s dynamics.
The catalyst behind Dogecoin’s rally was tech mogul Elon Musk, whose remarks on integrating crypto payments into his X social media platform reignited interest in the coin. Long hailed as Musk’s favorite cryptocurrency, Dogecoin’s surge fueled theories that it could be a primary cause for an impending altcoin season.
Prominent figures in the crypto community, such as YouTuber Scott Melker and trader Donovan Jolley, have shared their insights on the correlation between Dogecoin’s movement and the broader altcoin market. Melker, in a retweet of his earlier post, theorized that mainstream FOMO (fear of missing out) would return to crypto once Dogecoin reached a new all-time high.
Jolley supported this theory, citing historical data that shows Dogecoin’s rallies often coincide with dips in Bitcoin dominance, signaling the onset of all season.
Is Dogecoin Riding The Wave Of The Bitcoin Season?
Meanwhile, data from the Blockchain Center paints a contrasting picture. Despite the excitement surrounding Dogecoin’s rally, the market remains firmly entrenched in what analysts term “Bitcoin season.”
The platform’s Alt-Season Index currently stands at just 47%. This index a metric identifies the number of top 50 cryptocurrencies that have outperformed BTC in the last three months. According to Blockchain Center’s criteria, alt season is only confirmed once this index surpasses the 75% threshold.
A closer look at the historical context reveals that while Dogecoin’s movements may foreshadow altcoin rallies, correlation does not imply causation. Altcoin gains during altseason are typically more pronounced than those of established tokens, and Dogecoin, despite its recent surge, is still 70% below its all-time high.
Furthermore, the crypto market has witnessed sporadic altseasons recently, notably in mid-to-late January and briefly on March 6th. However, sustained periods of altcoin outperformance have been rare since the last significant alt season in August 2022, which lasted approximately six weeks before fading by mid-September of the same year.
Other Meme Tokens Surge
Moreover, Dogecoin’s rally was not an isolated event. Other meme tokens, including BONK and FLOKI, have grown significantly with DOGE’s surge. BONK and FLOKI emerged as the top gainers over the past 24 hours, with gains of 15% and 13.7%, respectively.
This demonstrates the interconnected nature of meme tokens within the cryptocurrency market, with positive sentiment towards one token often spilling over to others. Moreover, the rise of meme tokens extends beyond established networks like Ethereum, with tokens like Dogwifhat (WIF) achieving a 4,000% surge since its inception in December 2023.
The Solana network has emerged as a hotspot for speculative token trading, surpassing Ethereum’s turnover for financial applications. The proliferation of meme tokens on the Solana blockchain has attracted thousands of new market participants, driving up SOL’s price.
Nevertheless, Dogecoin’s enduring popularity and potential to catalyze market-wide shifts underscore its remarkable influence among memecoins.
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