Dogechain, which is based on Polygon Edge, locks up almost $5 million in liquidity and is becoming more well-known among retail crypto traders.
Developer documents say that Dogechain is built on Polygon Edge, which allows the project to start up a new blockchain network while still being fully compatible with Ethereum smart contracts and transactions.
Retail interest in Dogechain, a bridge that lets traders convert dogecoin (DOGE) to wDOGE and use tokens, non-fungible tokens (NFT), and products built on the network, has caused dogecoin prices to rise this week.
In the last 24 hours, the price of DOGE went up about 10%, even though the overall crypto market was mostly flat. Recent statistics show that this increased to 25% over the past week, and the price is now hitting a wall at $0.088.
Dogecoin’s price has gone up and down partly because people want DOGE tokens, which are used to connect to Dogechain. Dogechain, which calls itself a “layer 2 for dogecoin,” uses dogecoin as its base trading token and as payment for fees on its network.
Dogechain is also planning to give its own DC token away for free to users of the platform, according to its website. Developers said, “The dogechain team is getting ready to give away millions of $DC tokens to the Dogecoin community via airdrop.”
Some Crypto Twitter users think that the airdrop will be given to people who bridge their Dogecoin to Dogechain. This has made short-term demand for dogecoin go up even more.
Retail traders who bet on short-term price changes of dog-themed tokens, many of which have “doge” or “shib” in their names, send money to the Dogechain bridge. Most of these tokens, however, are based on speculation and don’t show a real use case.
Since the launch of Dogechain earlier this week, on-chain trackers have found that about $4.6 million worth of goods is now locked on the chain. The data shows that over 97% of that is locked up on the Dogechain-based exchange DogeSwap alone.
Dogechain developers said on Wednesday that since the network was set up earlier this week, there have been more than 480,000 unique transactions and about 58,000 native wallets.