Dogecoin Community Awaits SEC ETF Decision Amid 20% Market Cap Growth

Dogecoin holders worldwide are celebrating "Dogeday" on April 20, a day that has become an unofficial holiday for the Dogecoin community. This celebration coincides with the anticipation of upcoming decisions from the US Securities and Exchange Commission (SEC) regarding several Dogecoin-related exchange-traded fund (ETF) applications. Dogeday, which originated in 2021 during International Weed Day, has become a significant event for Dogecoin enthusiasts, highlighting the community's enthusiasm and the memecoin's enduring popularity despite its inflationary nature.

Dogecoin, often dismissed as a joke token, remains the eighth-largest cryptocurrency by market capitalization, valued at $23.3 billion. Its tokenomics, which involve issuing 14.4 million new DOGE tokens into circulation daily, result in a daily inflation rate of over $2.16 million. This inflationary model, while criticized, has contributed to Dogecoin's appeal among retail investors. According to Anndy Lian, an author and intergovernmental blockchain expert, Dogecoin's staying power is due to a combination of community-driven enthusiasm, low entry barriers, and speculative appeal. The 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 resonates with younger, internet-savvy investors, further amplifying its retail appeal.

Despite lacking underlying blockchain use cases, Dogecoin's value has been driven by social media traction and retail hype. In November 2024, Dogecoin surpassed Porsche’s market capitalization, fueled by continued social media endorsements from billionaire Elon Musk. The Dogecoin community is now eagerly awaiting the SEC's decisions on several DOGE-related ETF applications. There are four 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, while 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. The outcome of these decisions will significantly impact the future of Dogecoin and its community, as the approval of ETFs could bring new levels of legitimacy and investment to the memecoin.