The Dynamic Duo: How Do Dogecoin and Dogechain Connect and Align?
I’ve often pondered the relationship between Dogecoin and Dogechain. Both share the “Doge” name — one a cryptocurrency, the other a blockchain. Are they linked? Let’s dive into their story.
Dogecoin
Launched in December 2013, Dogecoin emerged as the original memecoin, inspired by the Shiba Inu meme. Created by Billy Markus and Jackson Palmer as a playful jab at crypto speculation, it was meant to be a lighthearted payment system.
Yet, its vibrant community of meme and crypto enthusiasts propelled it to a peak market cap of over $85 billion in 2021, earning it the title “king of memecoins.” However, as a Proof-of-Work (PoW) blockchain like Bitcoin, Dogecoin’s $DOGE token is limited to payments and trading on centralized exchanges, lacking Web3 functionality.
Dogechain
In August 2022, Dogecoin fans sought to expand its potential. They built Dogechain, a blockchain enabling $DOGE to integrate with Web3 applications like DeFi, NFTs, and gaming through smart contract capabilities.
A native bridge allows $DOGE to move from the Dogecoin network to Dogechain as wrapped DOGE (WDOGE), serving as the gas token for transactions like staking, farming, and NFT purchases. Dogechain also introduced its native token, $DC, used for staking and network security, with its vote-escrowed form (veDC) acting as the governance token.
Dubbed the “Memechain,” Dogechain supports Dogecoin’s utility and hosts other memecoin projects. Note: Dogechain is not officially endorsed by Dogecoin’s creators or community but has consistently pursued its mission.
Do $DOGE and $DC Move in Tandem?
Around February 2023, I noticed a pattern: $DOGE and $DC prices often rise and fall together. To explore this, I backtested their price trends. On TradingView, overlaying the DC/USDT and DOGE/USDT charts reveals strikingly similar patterns, a phenomenon I call the “Power Pair Synchronization.”
The only divergence occurred between August and September 2022, when $DC launched and its price fluctuated independently. By October-November 2022, $DC began mirroring $DOGE’s highs and lows, establishing a clear correlation. When $DOGE pumps, $DC often follows; when $DOGE dips, $DC does too.
Why the Synchronization?
Dogechain enhances Dogecoin’s utility, with $DOGE serving as its gas token for Web3 activities. This connection ties their market momentum. In a bull market, $DOGE’s surges are likely to boost $DC, creating a snowball effect for both tokens. Adding this “power pair” to your portfolio could amplify gains during bullish trends.
For the full scoop and updates, check out Dogechain’s social channels: https://linktr.ee/dogechain
Disclaimer: This post is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.
