Dogecoin liquidity deepens as DOGE goes live on Thorchain
- Thorchain announced earlier today that the Dogecoin liquidity pool is live on the decentralized liquidity network.
- As on-chain activity would increase, the deep liquidity fuels a bullish narrative for Dogecoin price.
- Analysts have predicted that the Dogecoin price is ready for the next leg up.
Thorchain revealed earlier today that the decentralized liquidity network added support for Dogecoin. Proponents believe that the spike in liquidity could fuel a bullish narrative for the memecoin’s price.
Analysts believe that Dogecoin price could rally
Thorchain, a decentralized liquidity network similar to automated market makers and DEXes like Uniswap, announced support for Dogecoin earlier today. Traders can now swap Dogecoin for Bitcoin, Ethereum, Litecoin and other cryptocurrencies on Thorchain.
Thorchain offers synthetic versions of cryptocurrencies to traders instead of the crypto, differentiating it from centralized crypto exchanges.
Chad Barraford, technical lead at Thorchain, was quoted as saying:
THORChain […] prevents users from having to “wrap” their coins or tokens—meaning one might use BTC in an Ethereum DeFi protocol without having to wrap it into “wrapped BTC,” or wBTC. Moreover, users do not have to rely on bridges between chains. The network currently supports five chains: Bitcoin, Ethereum, Binance Smart Chain, Litecoin, and Bitcoin Cash.
Rather than relying on centralized cryptocurrency exchanges, investors can exchange Dogecoin for other cryptocurrencies on the decentralized liquidity network.
The addition of Dogecoin to Thorchain’s liquidity pools now offers investors the opportunity to earn a yield on their memecoin holdings for the first time.
Elon Musk announced that users could buy Tesla merchandise with Dogecoin on Friday last week. This fueled a bullish narrative for the Dogecoin price.
Analysts have evaluated the Dogecoin price trend and predicted a rally in the memecoin. @CryptoKaleo, a crypto analyst and trader, believes that the memecoin is preparing for its next leg up.
$DOGE getting ready to send for the next leg higher pic.twitter.com/m9xZYIEqfk
— K A L E O (@CryptoKaleo) January 15, 2022
The analyst believes that a week ago, Dogecoin was overbought, price trend was parabolic.
FXStreet analysts have predicted that Dogecoin price has entered the buy zone before breaking out to $0.28.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
