Dogecoin (DOGE), the world’s largest memecoin, has seen a remarkable 21% rise over the past week, outperforming its competitors such as Shiba Inu, Pepe, and Bonk. The surge follows significant whale activity, bolstering bullish sentiment among investors and analysts.
Whales Accumulate Over 1 Billion DOGE
On January 3, whale wallets accumulated over 1.08 billion DOGE, valued at approximately $413 million, according to blockchain analytics platform Blockchair. A notable transaction saw 399.9 million DOGE, worth $144.9 million, transferred from Binance to an unknown wallet. Such large movements often indicate reduced selling pressure as coins are shifted to private wallets, signalling a bullish outlook.
At the time of publication, DOGE was trading at $0.38. In comparison, Shiba Inu (SHIB), Pepe (PEPE), and Bonk (BONK) posted gains of 7%, 10%, and 14%, respectively, but lagged behind Dogecoin’s performance.
January: Historically the Best Month for DOGE
Data from CryptoRank highlights January as Dogecoin’s strongest-performing month, with an average return of 85% over the years. In January 2021, DOGE skyrocketed by 711%, and in January 2014, it delivered a 269% return. April ranks as the second-best month for DOGE, marked by gains of 546% in 2021 and 84.9% in 2018.
This trend reinforces optimism for continued growth as the cryptocurrency enters its historically bullish phase.
Analysts Predict DOGE Could Reach $1 by 2025
Galaxy Digital’s head of research, Alex Thorn, has forecasted that Dogecoin could hit $1 by 2025. This would represent a 170% increase from its current levels and push its market capitalisation to $100 billion.
“Dogecoin will finally hit $1, with the world’s largest and oldest memecoin touching a $100bn market cap,” Thorn stated in Galaxy’s 2025 crypto predictions report, released on January 2.
Government Efficiency Agency Sparks Momentum
Dogecoin’s recent rally coincides with a unique development in U.S. politics. President-elect Donald Trump announced the creation of a new government agency, the Department of Government Efficiency (DOGE). Billionaire Elon Musk and entrepreneur Vivek Ramaswamy have been appointed to lead the department, sparking excitement within the Dogecoin community. The news has contributed to increased investor interest in DOGE.
Investor Interest Peaks as Open Interest Soars
Investor engagement has also surged, with Dogecoin’s open interest (OI) rising by over 50% in the past five days, according to CoinGlass. OI has grown from $2 billion to $3 billion, highlighting increased activity in DOGE derivatives markets.
Yield Farming DOGE: A New Strategy
Canadian investment firm Spirit Blockchain Capital announced plans on January 2 to leverage its Dogecoin holdings for yield generation. This strategy mirrors MicroStrategy’s approach to Bitcoin, where reserves are utilised to generate additional revenue streams.
Spirit Blockchain aims to deploy its DOGE reserves into decentralised finance (DeFi) protocols, offering yield-based products to institutional and retail investors. This innovative use of Dogecoin underscores its growing utility beyond its memecoin status.
Dogecoin’s resurgence reflects strong whale activity, heightened investor engagement, and renewed confidence in its potential. With a forecasted price target of $1 and increasing adoption in DeFi, the iconic memecoin appears poised for significant growth in the coming years.
