Dogecoin Community Awaits ETF Decision Amidst 20% Market Cap Growth

Dogecoin enthusiasts around the globe are celebrating “Dogeday” on April 20, as the community eagerly anticipates the upcoming deadlines for Dogecoin-related exchange-traded fund (ETF) applications. Dogeday, an unofficial holiday within the Dogecoin community, gained popularity in 2021 during International Weed Day on April 20.

Despite its reputation as a joke token, Dogecoin remains a significant player in the cryptocurrency market, currently ranking as the eighth-largest cryptocurrency by market capitalization. Its tokenomics, however, have been a subject of criticism due to the daily issuance of 14.4 million new DOGE tokens, resulting in a daily inflation rate of over $2.16 million.

Anndy Lian, an author and intergovernmental blockchain expert, attributes Dogecoin’s staying power to a combination of community-driven enthusiasm, low entry barriers, and speculative appeal. Lian explains that Dogecoin’s inflationary supply, which adds roughly 5 billion coins annually, keeps prices accessible, typically under $1, making it psychologically appealing for retail investors. The meme-driven branding of Dogecoin further amplifies its retail appeal, resonating with younger, internet-savvy investors.

Unlike other cryptocurrencies such as Bitcoin or Ethereum, Dogecoin lacks underlying blockchain use cases and typically rallies based on social media traction and retail hype. In November 2024, Dogecoin surpassed Porsche’s market capitalization, driven by continued social media endorsements by billionaire Elon Musk.

The Dogecoin community is closely monitoring the US Securities and Exchange Commission as it evaluates several DOGE-related ETF applications. There are four Dogecoin ETF filings awaiting approval: the Bitwise Dogecoin ETF, the Grayscale Dogecoin ETF, the 21Shares Dogecoin ETF, and the Osprey Fund Dogecoin ETF. Grayscale’s ETF application is due for a response on May 21, following multiple delays by the SEC on crypto ETF filings.

Bitwise’s filing could receive a response on May 18, marking the end of the SEC’s 75-day initial review period. However, the 240-day review period could enable the regulator to delay the decision until October 2024 for both filings. The ETF applications from 21Shares and Osprey are still pending review for their initial 19b-4 filings, with no set deadline from the securities regulator.