Dogecoin continues to cement itself as the largest meme coin by market cap, displaying signs of renewed enthusiasm every so often. This week, the meme-inspired cryptocurrency added over $1 billion to its market cap, making it the 8th-largest crypto. This was a result of Dogecoin’s surge of over 10%, boosting its market cap to more than $10 billion in a matter of hours.

Dogecoin Pushes Solana To Number 9

Dogecoin has come a long way since its creation as a joke. Fueled by the hype on social media, the meme cryptocurrency has skyrocketed up the rankings to become the 8th-largest cryptocurrency by market cap. The price of Dogecoin recently crossed over the $0.070 resistance level to reach $0.076. As a result, more than $1 billion was added to its market cap, surging from $9.67 billion to $10.66 billion. 

Although its price has now dropped to $0.074 at the time of writing, Dogecoin still has a $10.35 billion market cap, pushing Solana down to the number 9 spot. On the other hand, Solana is down by 7% in a 7-day timeframe and has lost more than $1.4 billion in market cap.

What’s Pushing The Price?

A big part of Dogecoin’s past success has come mostly from social media hype and a few influential people and groups hyping it up. A major influence is billionaire Elon Musk. Ever since Musk began tweeting about the meme coin, Dogecoin has gained more attention from crypto investors and his tweets praising the crypto have led to major spikes in interest and price. 

The latest spike in the price of Dogecoin seems to have come from rumors of Tesla retaining the cryptocurrency in its payment page source code. Dogecoin is the second cryptocurrency to be accepted by the automobile manufacturer after Tesla added Bitcoin as an option back in 2021. However, Tesla has since discontinued the option to pay with Bitcoin and has deleted the option in the source code of its payment page.  

At present, Tesla has deleted “bitcoin” in the source code of its payment page, but still retains “dogecoin”. pic.twitter.com/BQrRtuTN8Z

— Wu Blockchain (@WuBlockchain) July 21, 2023

Dogecoin (DOGE) is currently trading at $0.07378, ranging between $0.065 and $0.075 for the past week. If the $0.075 resistance is broken through, we could see DOGE rise to as high as its February price of $0.096. 

Interestingly, the asset has bounced off the $0.060 support level multiple times since August 2022, making it a significant support for the meme coin. So a break below $0.060 could see DOGE fall to its lowest point in over a year.

While Dogecoin lacks the scarcity of Bitcoin or the smart contract capabilities of Ethereum, it’s won over an enthusiastic community of supporters and has become relatively stable over the years. However, Dogecoin is still a very volatile investment, and its value is largely based on social media hype rather than real-world utility.