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In recent weeks, Dogecoin (DOGE) has shown a massive surge, significantly outperforming bitcoin (btc) and other major altcoins. Memecoin has skyrocketed 170% in the last two weeks, a staggering 250% in the last five weeks, and 95% in the last five days alone. This meteoric rise has positioned Dogecoin as one of the top-performing digital assets in the current market landscape.
Why Dogecoin Outperforms bitcoin?
Michael P. Regan, leader of Bloomberg's global cryptocurrency team and former senior markets editor, shed light on this phenomenon during a <a target="_blank" href="https://x.com/crypto/status/1856443837381742908″ target=”_blank” rel=”nofollow”>interview with Bloomberg crypto. Addressing traditional investors' skepticism regarding Dogecoin's fundamentals, Regan acknowledged the coin's unexpected resilience.
“I think Dogecoin has surprised everyone with its staying power,” Regan said. “When you talk about core values, it becomes a bit of a philosophical discussion when it comes to cryptocurrencies. But one thing about Dogecoin that's really interesting is that it's actually very cheap to transact with, much cheaper than bitcoin.”
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Regan highlighted practical use cases that contribute to Dogecoin's value proposition. “We have had stories; In fact, there are people who use it to send remittances, you know, people who send money to their parents in Venezuela. “It is much cheaper to do that with Dogecoin than with most other cryptocurrencies,” he explained.
In addition, he mentioned the growing acceptance of Dogecoin in everyday transactions: “There are even people developing payment applications. You know, there is a pizza place, Williamsburg Pizza in New York, that accepts Dogecoin.”
Despite its origin as a joke, Regan believes there is more to Dogecoin than meets the eye. “It all started as a joke. “You know, it still makes me laugh thinking about it, but I think there's something there that's a little more serious than most people realize,” he concluded.
The Elon Musk effect
When asked about Elon Musk's influence on Dogecoin's recent rally, Regan didn't mince words. “I think this rally we've seen is almost entirely tied to Elon Musk,” he said. Musk, a well-known Dogecoin advocate, has a history of impacting its price through his public statements and social media activity.
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“Elon Musk has been a big supporter of Dogecoin lately. I think, you know, just because of the memes: the guy likes funny memes on the Internet. “Dogecoin is kind of the preferred meme currency on x and twitter before that,” Regan said.
He emphasized the speculative nature of memecoin and Musk's important role in it. “It's hard to know exactly, you know, if that's as far as Musk's appreciation for him goes. But regardless, you know, cryptocurrencies are all about speculation. He likes it,” Regan said.
Regan highlighted the impact of Musk's participation and concluded: “It has increased almost 200% since the election,” referring to the stir created by the establishment of the Department of Government Efficiency (DOGE).
At press time, DOGE was trading at $0.38698.
Featured image created with DALL.E, chart from TradingView.com
