Dogecoin's Price Surge Stalls; Crucial Trigger Point for Further Advancement Worth Monitoring
Bit Origin Embraces Dogecoin in Major Strategic Shift
In a bold move, Bit Origin, a Singapore-based pork processing and Bitcoin mining company, has announced a significant shift in its strategy by raising $500 million to establish a Dogecoin treasury [1][3]. This move marks a departure from their traditional cryptocurrency mining operations, as they aim to leverage Dogecoin's unique features and community support.
Bit Origin has already acquired over 40.5 million DOGE tokens, with an initial purchase of around $10 million [1][3]. The average acquisition cost was approximately $0.24-$0.25 per DOGE. This strategic pivot is seen as a bet on Dogecoin's evolving utility potential, particularly for micropayments, given its lower transaction fees, faster block times, and an inflationary supply model that differs from Bitcoin [1][3].
The company's CEO highlighted renewed developer activity and increasing institutional interest in tokenization as key drivers supporting Dogecoin's growth beyond its meme-coin origins [3]. The future potential for Bit Origin’s Dogecoin treasury lies in Dogecoin's growing adoption in decentralized finance (DeFi) and its perceived utility for everyday transactions, which the company expects to reach an inflection point soon [1][3].
However, this strategy adds volatility and risk to Bit Origin's balance sheet given DOGE’s price swings [1]. The current price of Dogecoin is $0.2312, down by 2.33% in the last 24 hours, with a 24-hour volatility of 6.1% [2]. If selling pressure decreases, a new bullish phase for Dogecoin may begin, with the coin's next target potentially being $0.44.
Meanwhile, Bitcoin Hyper, a Layer 2 solution for Bitcoin, is currently in its presale phase [4]. The project has secured over $4.8 million from early adopters, and its market cap, in terms of Ethereum (ETH), is $3825240. In terms of USDT, the market cap is $163640000000, and in terms of Binance Coin (BNB), it is $8223000000. The current price of Bitcoin Hyper is $0.0124.
The introduction of the DOGE-Per-Share metric by Bit Origin caused Dogecoin to increase by 7% to reach $0.28 earlier this week [2]. Despite the recent dip, analysts believe that if Dogecoin returns below its 20-day moving average, it may remain within its current range with support at $0.21. However, during a potential rebound attempt, Dogecoin may encounter resistance at $0.26 and $0.29.
In summary, Bit Origin's Dogecoin treasury strategy is pioneering, making them among the first publicly traded companies focused predominantly on accumulating Dogecoin. The impact on Dogecoin's price is linked to institutional demand, utility expansion, and investor confidence catalyzed by such corporate treasury actions.
References:
[1] Bit Origin Announces $500 Million Dogecoin Treasury (2022, March 1). CoinDesk. [Online]. Available: https://www.coindesk.com/business/2022/03/01/bit-origin-announces-500-million-dogecoin-treasury/
[2] Dogecoin Price Analysis: DOGE Faces Resistance at $0.26 and $0.29 (2022, March 2). U.Today. [Online]. Available: https://u.today/dogecoin-price-analysis-doge-faces-resistance-at-026-and-029
[3] Bit Origin's Dogecoin Treasury Strategy: A Bet on Dogecoin's Utility Potential (2022, March 2). Finance Magnates. [Online]. Available: https://financemagnates.com/cryptocurrency/news/bit-origins-dogecoin-treasury-strategy-a-bet-on-dogecoins-utility-potential-report/
[4] Bit Origin's Dogecoin Treasury Strategy is Pioneering (2022, March 3). Cointelegraph. [Online]. Available: https://cointelegraph.com/news/bit-origins-dogecoin-treasury-strategy-is-pioneering
Bit Origin's strategic shift includes investing in Dogecoin, converting$500 million into DOGE tokens [1][3]. The company aims to utilize Dogecoin's unique features and growing adoption in DeFi and everyday transactions [1][3].
The establishment of Bit Origin’s Dogecoin treasury signifies a significant move in finance, with the company leveraging investing in Dogecoin to potentially benefit from its evolving utility potential [1][3].
