Over recent weeks, Dogecoin (DOGE) has witnessed a phenomenal surge, outshining Bitcoin (BTC) and other prominent altcoins. The memecoin has skyrocketed by 170% in the last two weeks, an impressive 250% over the past five weeks, and a remarkable 95% in just the last five days. This extraordinary climb has established Dogecoin as a leading digital asset in today’s market landscape.
Understanding Dogecoin’s Outperformance Against Bitcoin
Michael P. Regan, the global team leader for cryptocurrencies at Bloomberg and a former senior markets editor, provided insights into this intriguing phenomenon during a conversation with Bloomberg Crypto. Addressing traditional investors’ skepticism about Dogecoin’s fundamentals, Regan highlighted the coin’s unexpected resilience.
“Dogecoin, I think, has surprised everybody with its staying power,” Regan stated. “When you talk about the fundamental values, that gets kind of, you know, sort of a philosophical discussion when it comes to crypto. But one thing about Dogecoin that’s really interesting is it is actually very cheap to transact with, much cheaper than Bitcoin.”
Practical Applications Elevating Dogecoin’s Value
Regan emphasized practical use cases that enhance Dogecoin’s value proposition. “We’ve had stories—you do actually find people using it for remittances, you know, people sending money back home to Venezuela to their parents. It’s a lot cheaper to do that with Dogecoin than most other cryptocurrencies,” he explained.
Moreover, Regan noted the increasing acceptance of Dogecoin in everyday transactions: “There’s even people developing payments apps. You know, there’s a pizza place, Williamsburg Pizza in New York, that accepts Dogecoin.” Despite its humorous origins, Regan believes there is more to Dogecoin than meets the eye. “It started as a joke. You know, it still makes me laugh to think about it, but there is something there that’s a little bit sort of more serious than most people realize, I think,” he concluded.
The Influence of Elon Musk on Dogecoin’s Rally
Regan was candid about the impact of Elon Musk on Dogecoin’s recent rally. “This rally we’ve seen, I think, is almost, you know, completely tied to Elon Musk,” he asserted. Musk, a recognized advocate for Dogecoin, has a history of influencing its price through his public comments and social media activities.
The Speculative Nature and Musk’s Role
“Elon Musk has been a huge champion of Dogecoin lately. I think, you know, just for the memes—the guy likes funny memes on the Internet. Dogecoin is sort of the, you know, meme coin of choice on X and Twitter before that,” Regan remarked.
He highlighted the speculative nature of the memecoin and Musk’s pivotal role within it. “It’s hard to know exactly, you know, if that’s as far as Musk’s appreciation for it goes. But regardless, you know, crypto is all about speculation. He likes it,” Regan noted.
Regan concluded by emphasizing Musk’s influence, “It’s up almost 200% since the election,” referring to the excitement generated by the establishment of the Department of Government Efficiency (DOGE).
At the time of writing, DOGE traded at $0.38698.
