Dogecoin goes live on Solana as volume hits $19M

Dogecoin goes live on Solana as volume hits $19M – Will demand last?

In a recent update, Dogecoin [$DOGE] has gained access to the Solana [$SOL] ecosystem.

Thanks to the Sunrise protocol, Dogecoin, which normally existed on its own blockchain, can now be used inside the Solana ecosystem from the 7th of <a href="https://xpertsstudio.com/why-september-15-could-be-a-major-test/” title=”Why September 15 Could Be a Major Test”>September.

For context, Sunrise is a cross-chain liquidity gateway associated with Wormhole infrastructure. It is designed to bring assets from other blockchains onto Solana in a standardized form.

How is this good news for Dogecoin?

This, in turn, will now allow $DOGE users to access Solana applications without manually navigating the multi-step bridging process.

To avoid complications, Sunrise also uses a unified mint for an incoming asset. This intends to prevent several competing versions of $DOGE from fragmenting liquidity across Solana.

That said, $DOGE has historically had limited DeFi functionality because its blockchain was primarily built for payments.

Now, by becoming accessible on Solana, $DOGE can tap into the chain’s broader DeFi ecosystem. As a result, this would allow users to trade, provide liquidity, and potentially use $DOGE in other financial applications. Here, the list includes platforms such as Raydium, Jupiter, and Kamino.

Early success with a hint of complications

That said, just after three hours of going live on Solana, $DOGE reportedly generated more than $10 million of Solana trading volume. In fact, over the last 24 hours, the volume has reached $19 million.

It’s pretty obvious that making $DOGE easier to trade and use on Solana can increase accessibility, liquidity, and potentially demand. However, it’s also important to note that none of those will automatically cause $DOGE’s price to rise.

This was proven as $DOGE saw a modest drop in the past 24 hours as it traded at $0.08915 at press time. Additionally, AMBCrypto also reported that Dogecoin traders appear to be losing momentum, with selling pressure increasing and overall trading activity declining.

But with a hike of 27.2% in the past month, hope remains.

This coincided with Solana posting a strong 41% August rally. However, Robinhood Chain overtaking Solana in daily DEX volume has added to the ongoing FUD.

Impact on $DOGE’s liquidity and $SOL’s memecoin activity

Yet despite these roadblocks, this integration could become a catalyst for a new wave of $DOGE liquidity and memecoin activity on Solana. However, the real catalyst would be sustained liquidity and trading activity, rather than the initial launch-day volume alone.

This comes on the heels of $DOGE’s perpetual market remaining highly volatile, with several sharp liquidation spikes as price moved between roughly $0.08 and $0.09.

All in all, the above chart clearly shows that long liquidations have dominated several September sessions, reinforcing the risk of crowded bullish positioning. Meanwhile, t​he Solana memecoin market cap was trading at $3.69 billion at press time after a drop of 3.4% in the last 24 hours.

Final Summary

• A Dogecoin user can now access Solana applications without manually navigating the multi-step bridging process.
• This might increase accessibility and liquidity, but none of those would automatically lead to $DOGE’s price surge.

Source: cryptonews.net