Dogecoin holders watch $23B memecoin as ETF decisions near
Dogecoin (CRYPTO:DOGE) holders worldwide marked April 20 as “Dogeday,” an informal celebration tied to the memecoin’s community and coinciding with the pending decisions on Dogecoin-related exchange-traded fund (ETF) applications.
The date gained popularity within the Dogecoin community starting in 2021, aligning with International Weed Day on April 20.
Despite its origins as a joke token, Dogecoin remains the eighth-largest cryptocurrency by market capitalisation, valued at approximately $23.3 billion according to CoinMarketCap.
Dogecoin’s tokenomics include a daily inflation rate exceeding $2.16 million due to the issuance of 14.4 million new DOGE coins each day.
This inflationary supply contrasts with cryptocurrencies like Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), which have capped or limited supplies.
Anndy Lian, an author and blockchain expert, noted that Dogecoin’s inflationary model helps keep its price generally under $1, which appeals to retail investors.
“Unlike Bitcoin or Ethereum, Dogecoin’s inflationary supply — adding roughly 5 billion coins annually — keeps prices accessible, typically under $1, making it psychologically appealing for retail investors,” he said.
Lian also pointed out that Dogecoin’s meme-driven branding resonates with younger, internet-savvy investors, contributing to its ongoing popularity.
Memecoins such as Dogecoin typically lack fundamental blockchain use cases and tend to experience price movements driven largely by social media attention and retail investor enthusiasm.
In November 2024, Dogecoin’s market capitalisation surpassed that of Porsche, a milestone attributed in part to endorsements by billionaire Elon Musk on social media.
The Dogecoin community is now focused on the US Securities and Exchange Commission (SEC), which is reviewing four separate Dogecoin ETF applications.
These include filings from Bitwise, Grayscale, 21Shares, and Osprey Fund.
The SEC’s response to Grayscale’s ETF application is expected by May 21 after a delay in decision-making on several crypto ETF proposals.
Bitwise’s filing may receive a response by May 18, marking the end of the SEC’s initial 75-day review period, though a longer 240-day review could extend the decision until October 2024.
The applications from 21Shares and Osprey remain under initial review with no official deadlines announced.
The SEC’s decisions on these ETFs will likely influence Dogecoin’s market dynamics going forward.
At the time of reporting, the Dogecoin (DOGE) price was $0.1612.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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