- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.