Bridge Dogecoin (DOGE) to tap into DeFi services
New blockchains focused on delivering games, and NFTs seem to emerge weekly. However, one that has the potential to get heads turning is Dogechain, a supposed layer-2 solution built with gaming, DeFi, and NFTs in mind, specifically for Dogecoin holders.
Traded by influencers and celebrities, DOGE is a bit of a phenomenon. What started as a joke meme coin has become one of the most popular cryptocurrencies. Nonetheless, the leading meme coin could be about to get much more utility with the launch of Dogechain.
Dogechain isn’t a real layer-2 network because it isn’t built on top of Dogecoin. Instead, it’s a separate network based on the popular Polygon Edge custom blockchain, an Ethereum sidechain. And it’s compatible with the Ethereum Virtual Machine means it can run dapps built for Ethereum.
Dogechain is not official
However, the real twist in the tale is that Dogechain is not an official Dogecoin creation. The Dogecoin Foundation retweeted a message stating that it is not involved in Dogechain, nor are the coin’s founders, Jackson Palmer and Billy Markus. They further clarified that it’s also not related to a Dogecoin blockchain explorer that shares the name.
Although the project is not official, the ethos and playful style from the DOGE meme coin is carried over to the website.
It’s not the first time an unofficial project became a vital tool in the DOGE ecosystem, as Block.io’s Dogecoin wallet and block explorer has been a core service and part of the Dogecoin ecosystem since 2014, is also unofficial.
What can you do on Dogechain?
One of the critical objectives of Dogechain is to encourage holders into DeFi, trading, and dapp usage. As stated on the website: Dogechain gives Doge holders superpowers, like DeFi, NFTs, games, and more! It’s time to unleash the creativity and full potential of the Doge community.
DOGE holders can bridge their existing DOGE over to Dogechain to receive wDOGE or wrapped DOGE in return. They can then use that on the new Dogechain platform to connect to DeFi dapps like DogeSwap, and in the future, connect with NFT and gaming dapps.
At writing, Dogechain is live and operational, already letting users transfer DOGE and interact with decentralized exchanges to buy new tokens minted on the Dogechain. Dogecoin is also used to pay gas fees for transactions on the Dogechain network.
Looking at the Dogechain block explorer, we see that almost 900,000 transactions have been processed, with more than 71,000 wallet addresses since its launch a week ago. For comparison, Polygon pushes through about 3 million transactions per day.
Looking at DEX Screener, we see more than $25 million in transaction volume within the last 24 hours. Dogeswap accounts for the lion’s share of that transaction volume, with more than $16 million. YODE, OMNOM, and PINKY lead the list of popular tokens accounting for more than $8.7 million in transaction volume in the last 24 hours.
The Dogechain team tweeted that they were overwhelmed by the response to Dogechain and that more than 58,000 wallets have been created since the network launched a week ago, alongside more than 480,000 total transactions.
The Dogechain website makes promises. It says it’s a new blockchain built and designed to be community-driven. No VCs and no big promises that the team can’t keep, such as 1 trillion transactions per second powered by a world-changing consensus algorithm. The project wants to bring blockchain applications to the Dogecoin community.
Further promises relate to a planned future airdrop of native DC tokens for Dogecoin holders. While those that hold DOGE on the trading app, Robinhood will be in line to receive free DC tokens when they withdraw their DOGE.
Tread with caution
While the release of Dogechain is sure to get some tongue wagging and trades happening in the crypto space, interestingly, it’s not the only meme coin attempting the endeavor, as rival Ethereum-based token Shiba Inu (SHIB) is also set to launch its layer-2 scaling network called Shibarium.
Moreover, the original DOGE creators not being on board should mean investors and traders air the side of caution. However, as we’ve seen countless times before, some people are excited to discover new assets on a new chain when low trading activity has been the norm.
It’s early days, but already there are fears of another BNB Chain type setup where it’s easy for creators to launch dapps and tokens and where pump and dump projects emerge every week. However, we would like to give the project the benefit of the doubt. As always, DappRadar will continue to track and monitor Dogechain developments.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in various cryptocurrencies, including BTC, ETH, and RADAR.