Can Dogecoin’s DeFi Venture Push DOGE Price Higher?

Following a successful listing by THORchain, after a long wait by the market participants, Dogecoin can finally be purchased on a decentralized exchange (DEX).

The cross-chain liquidity network THORChain in a recent announcement unveiled that it has enabled support for Dogecoin opening doors to decentralized finance (DeFi) capabilities for the token.

The support by THORchain is set to deliver the first-ever DeFi protocol connection to the meme token blockchain network enabling users to swap their DOGE for Bitcoin, ERC-20 tokens, BSC tokens, LTC native tokens, and stablecoins.

Welcome to DeFi, $DOGE!

The native $DOGE pool is now live.

Users can now deposit, trade, and earn $DOGE on their $DOGE.

Liquidity will deepen significantly throughout the week. pic.twitter.com/nyIXsgkTHp

— THORChain #DOGEFI (@THORChain) January 17, 2022

The Dog Enters the Defi Race 

The integration allows users to enter and exit the market free of Know Your Customer (KYC) regulations thus providing more sovereignty to the asset. In addition to that, a liquidity pool established for DOGE gives the asset’s liquidity providers the ability to earn yields on their deposits from trading fees.

Similar to other liquidity providers on THORChain, depositors have impermanent loss protection based on the length of time of each deposit.

Additionally, the non-custodial offering is set to open new yield farming opportunities for bigger investors looking to obtain better harvests from their stacks through a new permissionless DOGE liquidity pool.

Further, DOGE’s DeFi venture is expected to put the memecoin in a better place both in terms of its store of value narrative and as a medium of exchange. Dogecoin, for a long time, had been a spectator of DeFi growth but this integration puts the blockchain at the forefront of the DeFi ecosystem thus promoting all-over growth. 

That said, over the last month, major market developments like Tesla accepting Dogecoin for its merch have more or less failed to push spot prices in the right direction. 

Where’s Price Headed?

Looking at Dogecoin’s price chart it could be noted that the memecoin stood at $0.1647, just above the lower support level of $0.145. 

That said, the coin’s price spiked by over 2% to reach an intraday high of $0.167 after Tesla CEO Elon Musk tweeted a meme inspired by Christopher Nolan’s film Interstellar, which seemed to have stirred the winds for Dogecoin’s price.

Nonetheless, the tech tycoon’s efforts towards pushing DOGE’s price have pretty much gone in vain over the last few months and this time too any significant rise wasn’t seen. DOGE’s DeFi venture however could aid network growth and thereby price growth in the long term.