The course of the memecoin seems to follow the hype of Elon Musk again. In addition, Flare announced that Dogecoin will now move further into the DeFi space and the coin could soon be smart contract capable.
On April 25, 2022, multiple media outlets reported that Elon Musk may be buying Twitter this week. The Dogecoin price had already reacted to the announcement of the purchase itself. Apparently Elon Musk no longer has to tweet himself to have a positive influence on the Memecoin price. However, the impact of his tweets is likely to continue to diminish.
The Dogecoin price rose at the same time as the Bitcoin price, but was able to gain significant momentum – probably also due to the news – and already rose well above the opening price or the last high (+10% in one hour!). The announcement of the DeFi upgrade could also have favored the price increase.
The memecoin, which was actually a Bitcoin parody, should soon be able to run smart contracts and thus move closer to the DeFi space. In addition to its payment function, Dogecoin could itself become a platform for other cryptocurrencies.
In addition to Litecoin, Ripple and Stellar, Flare has now also integrated Dogecoin. This makes it possible to connect chains via the LayerCake Bridging System and to implement smart contracts with the Flare Network. Dogecoin could thus become a real Web 3 coin and also offer other useful functions or Dapps with the Flare Network.
For the Tesla CEO, however, Dogecoin does not necessarily have to have a Web 3 function. In his opinion, the new business features are much more important for the development of the coin.
The founder of the exchange Robinhood Vladimir Tenev, is convinced that it is possible for Doge to replace Visa. In some tweets, he explained that Dogecoin developers just need to increase the block size. This is currently 1MB and the block time is 1 minute and enables 40 transactions per second.
The Visa network can currently process around 46,000 transactions per second. With a reduction in the block time, the memecoin could theoretically become a small competitor to Visa. Tenev suggested increasing the block size to 10GB in order for Dogecoin to become a truly global payment network. However, the Doge community needs a lot more hardware for this.
Tenev seems to share Elon Musk’s opinion. For him, increasing block size is one of the main issues developers should focus on.