Dogecoin’s Rise: Three Reasons for Its Recent Performance

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Dogecoin (DOGE) emerged as one of the best-performing tokens amid the market’s recovery, with the eighth-ranked cryptocurrency trading at $0.164, pushing its monthly gains to nearly 96%.

Whale Transactions in DOGE

The surge in DOGE coincided with a milestone in whale transactions. Amid renewed market activity, Dogecoin‘s whale activity, with transactions exceeding $1 million, appears to be rapidly rising, showing an increase of over 600% just last month according to IntoTheBlock’s latest analysis.

This also pointed to the highest number of Dogecoin millionaire transactions since its peak in May 2021, essentially increasing large investor participation despite market volatility. While the general market started off relatively flat on Friday, Dogecoin gained nearly 5% the previous day. American cryptocurrency exchange Coinbase’s derivatives section, Coinbase Derivatives, announced its intention to offer cash-settled futures contracts for Dogecoin, alongside Litecoin and Bitcoin Cash by April 1st. The exchange stated the following regarding the matter:

Coinbase Derivatives will launch the first leveraged and CFTC-regulated futures contracts for Bitcoin Cash, Dogecoin, and Litecoin in April.

Analytical Reports on DOGE

The timing of the announcement coincides with another statement related to reports that the financial branch X Payments LLC has acquired additional licenses to facilitate payment functions on the social media platform led by Elon Musk, a well-known advocate for Dogecoin. Musk hinted at potential blockchain integrations as early as 2022.

Data from CoinGlass revealed that Dogecoin’s open interest (OI) was above $1.30 billion as of March 22. While the meme token itself is trading at over 70% below its all-time high value witnessed during the previous bull run, the OI reached a new peak of $1.4 billion earlier this month. Experts suggest that if the upward momentum continues, Dogecoin could soon reach new highs.