The Power Pair: How Does Dogechain and Dogecoin Correlate and Synchronize?
I’ve always had to think about Dogecoin and Dogechain.
Two blockchain entities with “Doge” in their names — one a coin, one a chain. Do they relate in any way?
Let me recount the chronicles.
Dogecoin
In December 2013, Dogecoin was birthed. The first memecoin ever created from the funny meme of a Shiba Inu breed of dog.
The cryptocurrency was created by software engineers Billy Markus and Jackson Palmer, who wanted to create a payment system as a “joke”.
The memecoin was created to make fun of the wild speculation in cryptocurrencies at the time. However, it quickly developed when a huge number of meme and crypto lovers dominated its community, reaching a peak market capitalization of over US$85 billion in 2021.
Dogecoin is called the “king of memecoins” for this reason. But there is a limitation.
Just like Bitcoin, Dogecoin is a PoW blockchain, which means the $DOGE token lacks what it takes to be plugged into Web3 for more utilities except payment and trading. It is only listed in centralized exchanges.
However, a blockchain network came to change all that.
Dogechain
In August 2022, a team of Dogecoin enthusiasts realized that Dogecoin could be induced with more utilities than payment.
If supercharged with smart contract capabilities $DOGE could be plugged into DeFi, NFTs, Gaming, etc.
So they came together and built Dogechain, inviting the community to become the spearheads of the ecosystem and fleshing out full decentralization.
A native bridge was created to become the portal through which DOGE would be transferred from the Dogecoin network to the Dogechain network as wrapped DOGE or WDOGE.
This process fully established DOGE as the gas fees of Dogechain and enabled the memecoin to be used for vexatious decentralized and Web3 activities like staking, farming, buying NFTs, lending, etc.
Dogechain also launched its token $DC, which is used in staking for the security of the network and its staked version is vote escrowed (veDC). That is, veDC is the governance token of the network and can also be delegated to validators for more rewards.
Dogechain became the first-ever blockchain network built to give Dogecoin utilities and for several other projects and memecoins to launch on it, leading to its title as the “Memechain”.
Note: Dogechain is not endorsed by the Dogecoin creators or community. But it has been carrying out its purpose steadily and without fail.
Does $DOGE and $DC Share The Same Price Action?
Around February 2023, I noticed a trend in DOGE and DC prices that made me think that there is something about the two networks that makes their prices go up and down almost at the same time.
Most times, a pump in DOGE leads to a pump in DC and a fall in DOGE leads to a fall in DC. So I tried to prove that by going back in time to backtest and looking at the trends formed in each market.
As a matter of fact:
The prices of $DOGE and $DC are closely related and their charts follow the same trend.
We can call this the “Power Pair Synchronization”.
Go to Tradeview, bring up, and zoom out the DC/USDT chart to the very beginning.
Then, overlay the DOGE/USDT chart over that of DC and tell me what you see. Almost the same chart pattern, right?
The only place it differs is at the beginning of $DC’s chart between August to September 2022, which is when DC launched.
At takeoff, $DC pumps and begins to drop. During this period, the candle patterns between both tokens are dissimilar until we get to somewhere around October and November 2022, where DC begins to mirror the highs and lows of DOGE and a unique correlation emerges.
DOGE pumps and DC pumps at the same level of high too; then, DOGE dips and DC follows suit, and from then onward, the chart pattern becomes very similar.
Every high and low of both tokens trail themselves in the same manner. It is clear to see that a price action on Dogecoin is inversely proportional to a price action on Dogechain.
Now, this raises a question: “Why does the price action of Dogechain’s DC match up with Dogecoin’s DOGE?”
Dogechain is a blockchain that gives added utility to Dogecoin. DOGE can be bridged to Dogechain and used on DeFi, NFTs, GameFi, etc, and it is also the gas token of Dogechain.
In a surprise unfolding of events, it turns out both DOGE and the token of Dogechain, DC have been kind of synchronized to match up their momentum in the market.
With a bullish market in tow, DOGE is bound to also do great numbers with massive wild runs upward. This snowball effect on $DOGE will, without a doubt, have the same effect on $DC.
That said, you can figure out that adding this power pair to your portfolio can create a good boost in the bull market.
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