Dogecoin stands superior in all the meme coins with significant price rallies and support from industry leaders like Elon Musk and others. Recently, the U.S. government even launched the Department of Government Efficiency or D.O.G.E., which aims to slash federal spending. Interestingly, a similar name has influenced the DOGE token’s price, but the recent Dogecoin Reserve announcement has raised the anticipation. Will it help this popular meme-themed cryptocurrency or hurt its price?
DOGE Price Surge 5% With Dogecoin Reserve News
The crypto market is filled with a new wave of optimism, as the House of Doge, a newly formed corporate arm of the Dogecoin Foundation, revealed the plans to establish an Dogecoin reserve.
The official announcement came on March 24, and at the time of writing, the reserve is live, starting debates among the crypto community, especially as the U.S. Strategic Bitcoin Reserve is in discussion.
Regardless of the competition, the House of Doge has purchased $1.8M worth of DOGE (10M DOGE) to develop this popular meme coin into a mainstream global payment solution. This decision will influence its liquidity and transaction efficiency, making it the best digital asset for everyday transactions.
Interestingly, with this House of Doge announcement, the DOGE price began to surge, jumping from $0.17 to $0.19. After maintaining a 5% rally in the last 24 hours, it currently trades at $0.1906 with a market capitalization of $28.33B. The biggest testament explaining the investor’s interest is the 54% surge in its trading volume, currently at $1.63B.
How is Dogecoin Reserve Different From Bitcoin Reserve?
Unlike traditional Bitcoin Reserve and the others, which use financial hedges, DOGE’s primary function is to provide liquidity and support transactions. Additionally, it will play a significant role in developing a global payment solution.
“House of Doge is laying the groundwork for a robust payments ecosystem designed to deliver liquidity and reliability,” said Michael Galloro (board-elect member of House of Doge).
He further added that this DOGE reserve will ensure that the digital assets can be used practically for daily operation. More importantly, it will address the blockchain-related delays that are seen as barriers to using digital assets in retail payments.
Interestingly, there’s also discussion around implementing loyalty programs and incentives for the merchants that accept DOGE.
Is Dogecoin Reserve Good for DOGE Price?
The formation of the DOGE Reserve could be the best thing for this meme coin. This milestone can turn its image from a highly volatile digital asset to a widely accepted currency, influencing the Dogecoin price forecasts.
With a simple announcement, the price is up significantly, and the actual events and growing adoption can boost it further. Additionally, there’s also discussion on the Dogecoin-focused ETFs, where asset managers like Grayscale and Bitwise have already filed for ETFs.
The SEC’s approval on this and the reserve’s success could push Dogecoin price to new highs at $0.8 or higher.
The post Will Dogecoin Reserve Launch Help or Hurt DOGE Price? appeared first on CoinGape.
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