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Dogecoin jump: could memecoins revive crypto bull run?

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Watch: Doge jump: could memecoins revive crypto bull run?

The price of dogecoin (DOGE-USD) jumped this week after the new Dogechain platform gained traction from retail investors.

The new platform enables the creation of decentralised finance (DeFi) protocols, NFT collectables, and decentralised apps (dapps) and games with the memecoin.

The new platform has not been built or endorsed by the official dogecoin founders, but that didn't stop traders from rushing to purchase dogecoin to use on the new marketplace.

The buying frenzy put dogecoin back into the cryptocurrency market cap top 10.

Read more: Crypto live prices

Tesla (TSLA) boss Elon Musk's favourite cryptocurrency jumped over 13.5% in the past seven days, standing at $0.077 at the time of writing.

The Polygon Edge-based (MATIC-USD) Dogechain has locked away nearly $5m (£4.2m) in liquidity and data from on-chain trackers shows an increasing amount of value migrating to Dogechain-based products, since its launch earlier this week.

The Dogechain platform has been dubbed a layer-2 for dogecoin has promised to give dogecoin more utility.

Dogechain is compatible with the Ethereum Virtual Machine, which means that it can run apps and games built for the Ethereum network.

BRAZIL - 2022/06/20: In this photo illustration, the stock trading graph of Shiba Inu (SHIB) seen on a smartphone screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
Shiba inu soared 19.78% in the past seven days, flipping Avalanche in market cap rankings to take 12th position. Photo: Rafael Henrique/SOPA Images/LightRocket via Getty

Shiba Inu follows Dogecoin in memecoin rally

A memecoin rally has rippled through crypto markets in the past week, signalling that risk-on behaviour has returned to crypto markets.

Shiba inu (SHIB-USD) soared 19.78% to $0.000014 in the past seven days, flipping Avalanche (AVAX-USD) in market cap rankings to take 12th position.

Read more: Crypto: What is Ethereum's Soulbound token?

The unrelenting rally of the two largest memecoin’s is a contrary move when compared to the downward trajectory of the other major cryptocurrencies.

Major blue chip cryptocurrencies have suffered heavy losses over the week, with bitcoin (BTC-USD) down 4% to $23,414 in the last seven days.

Ethereum (ETH-USD) was down 8% to trade at $1,873.

Representations of cryptocurrency Bitcoin are seen in this illustration, August 10, 2022. REUTERS/Dado Ruvic/Illustration
Major blue chip cryptocurrencies suffered heavy losses over the week, with bitcoin down 4%. Photo: Dado Ruvic/Reuters

Bitcoin adoption increases in Brazil

The largest investment bank in Latin America, BTG Pactual (BPAC11.SA), this week announced the launch of a bitcoin and cryptocurrency exchange in Brazil, an investment bank that has over $200bn in assets under its custody.

The bank’s new trading platform is called Mynt and will allow users to have direct access to bitcoin.

Andre Portilho, partner and head of digital assets at BTG, said, "Our vision is that crypto technology will do to the finance industry what the internet did to the information industry, it changed it completely".

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