Dogecoin Ecosystem Token Prices Rise 400%

Over the past week, the price of Dogechain, a token used in the Dogecoin ecosystem, has increased by 400%. Dogechain is a layer-2 blockchain with smart contract capabilities that enables users to use Dogecoin to pay network gas fees. Dogecoin cannot be used directly; instead, you must bridge your tokens in exchange for wrapped Doge (wDOGE). At any time, you can bridge back to get the equivalent in Dogecoin.

Of course, wrapped DOGE prices are the same as Dogecoin. However, the DogeChain token (DC), which is used for governance and staking, rose from a low of $0.00036 to $0.0018. With three days left before the ballot closes, a vote to burn 80% of the available supply earned practically a unanimous "yes."

A successful vote can result in a more favorable price movement for DogeChain. However, DogeChain will need to create practical decentralized apps and protocols if it wants to continue succeeding. The ecosystem is still developing at this point. Until additional information regarding the project is known, the price movement will remain erratic and be connected to news conjecture.

It's important to note that DogeChain is totally independent of both Dogecoin developers and the Dogecoin blockchain. It doesn't necessary that DogeChain will increase in value if Dogecoin does. The viability of the DC token will depend on the quality of the ecosystem, notwithstanding DogeChain's strong marketing ties to Dogecoin.

This week, DogeChain devs shared their staking strategy. Users would have to lock up their DC tokens in exchange for veDC, a new token that would allow them to stake with validators, take part in governance, and interact with outside projects.

For a period of one month to four years, users must lock away their DogeChain tokens. Although the strategy is meant to lower circulating supply and ease selling pressure, it will force investors to gamble on DogeChain's future success.