Dogecoin (DOGE), the meme-inspired cryptocurrency, has experienced a remarkable surge of 10% in value on Tuesday, marking its most significant single-day gain since April 3. According to data from Binance, analyzed by TradingView, DOGE has seen a 25% rise in the past two weeks, raising speculation that it could soon become a preferred payment option on the revamped Twitter platform.
As the crypto market enters the anticipated summer lull in August, DOGE seems poised to be the star performer, stealing the spotlight from other crypto themes. Matrixport’s Head of Research and Strategy, Markus Thielen, attributes this momentum to Elon Musk’s efforts to reinvent Twitter through a marketing tour.
Evidence of traders’ optimism can be seen in the surge of the perpetual futures market tied to DOGE. The total dollar value locked in active perpetual futures contracts, known as notional open interest, has now surpassed $500 million for the first time since April 19, as per data tracked by Coinglass. This figure has more than doubled in just two weeks, with open interest in DOGE nearing its previous peak at 6.43 billion on April 8.
Such an increase in open interest, combined with the rise in DOGE’s price, indicates a substantial influx of new investment into the market, confirming an uptrend. However, the current open interest weighted-funding rates have dropped to zero, suggesting a balance between bullish long positions and bearish short positions.
Amidst DOGE’s remarkable run, El Salvador has issued its first-ever digital asset license to Bitfinex, signifying the growing acceptance of cryptocurrencies on a global scale. This move is likely to further boost investor confidence and adoption.
Despite the bullish sentiment, some experts warn that DOGE may witness a temporary breather after its recent market-beating performance. Funding rates, which represent the costs of holding long or short positions, currently point towards a balance between longs and shorts.
The meteoric rise of Dogecoin is capturing the attention of both traders and investors alike, with the cryptocurrency’s potential integration into Twitter’s rebranded platform fueling further excitement. As the crypto market’s summer lull takes a backseat to DOGE’s soaring popularity, the future of this meme-inspired digital asset remains a captivating subject to watch closely. Moreover, with the backing of significant institutional players and growing acceptance worldwide, Dogecoin’s journey may hold many surprises for crypto enthusiasts in the days to come.
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