The hype for Dogecoin ($DOGE) has led to a trading frenzy, one that has surpassed trading volumes even for Bitcoin, the alpha cryptocurrency. The DOGE cryptocurrency has been dominating charts on most Korean crypto exchanges, leading to its eventual rise and popularity in decentralized media.
Notwithstanding the fact that most of the hype surrounding Dogecoin is fueled by tech personalities such as Tesla’s CEO, Elon Musk, the cryptocurrency, which is an offshoot of Litecoin and also harnesses scrypt for its proof-of-work algorithm.
Dogecoin was established on December 6, 2013, first as a joke and a reaction to the speculative character of cryptocurrencies at the time. It has since grown and exploded as one of the top cryptocurrencies by price point and market capitalization, which now stands at $64,269,059,387 (billion), according to data aggregates as of press time.
KuCoin, a crypto exchange established in September 2017, has witnessed Dogecoin’s explosive growth, servicing some of the largest trading volumes of DOGE in South Korea, as well as globally.
“$DOGE on KuCoin dominating over other pairs for the first time. It seems that all those who wanted to buy DOGE have flocked to KuCoin. The 24h volume of DOGE-USDT has outstripped the BTC-USDT pair twofold from May 5 to May 9, reaching ATH of $606M,” shared KuCoin CEO Johnny Lyu.
Previously Lyu had also shared that DOGE could be used to transact in hotels, cafes, or cinemas in the future:
“Compared to Bitcoin, DOGE is more suitable to be futures money for higher supply, lower price, and faster transactions. It’s tailored for daily payment, and its community culture can easily resonate with the general public,” Lyu said.
According to Lyu, even without the hype surrounding the coin at present, DOGE has a higher potential for daily usage than Bitcoin, considering its lower entry threshold and connection to a much younger audience of cryptocurrency users.
Johnny Lyu’s comments on the development with DOGE come as South Korean crypto exchanges have come under pressure from traders in recent days as the volumes of Dogecoin transactions have exceeded the average volumes of local stock trading on traditional exchanges.
Current data from the CoinGecko resource shows that volumes of Dogecoin trading on the South Korean UpBit exchange alone have surpassed the $16 billion mark with smaller exchanges registering anywhere from $20 to $50 million. In comparison, the volumes of traditional company stocks traded in Korea daily stand at around $9 billion, while local monthly Forex trading of local FX accounts to around $7-8 billion.
Industry analytics show that the actual demand for DOGE remains low, however, leading to the speculation that the memecoin’s price is being artificially increased by market speculators taking advantage of community trust in Elon Musk’s tweets and public statements made on shows like Saturday Night Live.
Earlier in January of 2021, DOGE managed to surpass Bitcoin trading volumes on the Binance crypto exchange, topping the $5 billion milestone after the coin’s price spiked sharply by over 800%, reaching $0.08 from previous median values of $0.012. Apart from Elon Musk’s Tweets, the price of the memecoin has also been fueled by numerous posts made by r/Wallstreetbets traders in social media channels like Twitter and Reddit.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.