Bitcoin, Dogecoin rally as Russia considers using it for oil payments

Doge rose 6% over the past 24 hours, compared with Bitcoin’s 4% gain.

Compared with DOGE, Bitcoin gained 4% over the past 24 hours.
Compared with DOGE, Bitcoin gained 4% over the past 24 hours.

Most cryptocurrencies rose on Thursday after the chairman of Russia’s Duma committee stated during a press conference that bitcoin (BTC) may be accepted as payment for the country’s oil and other resource exports.
Russia’s news sent BTC beyond $44,000, while cryptos were already tracking gains in equities early in the New York trading day. Nonetheless, traditional safe-haven commodities like gold and the US currency climbed on Thursday, indicating some nervousness among global investors.

Alternative cryptocurrencies (altcoins) continue to dominate, as indicated by a drop in bitcoin’s market value compared to the entire crypto market cap during the last two weeks.
Dogecoin (DOGE), the popular dog-themed meme token, has risen as much as 6% in the last 24 hours, compared to a 4% spike in BTC during the same period. Meanwhile, Solana’s SOL token was up 10% on Thursday, and Axie Infinity’s gaming token AXS was up 20%.

A surge in cryptocurrencies typically signifies a turnaround in the wider crypto market as investors raise their appetite for risk.

Stocks of memes surge before bitcoin

Similar to the risk-on nature of altcoins in the crypto market, meme stocks tend to outperform regular shares.
Meme stocks are popular among individual investors who share trade ideas on social media platforms. Internet memes were made in 2020 to represent periods of sky-high costs.
The figure below depicts a recent increase in the link between bitcoin and an index of meme stocks, which was produced by Lev Borodovsky, editor of The Daily Shot newsletter. Several meme stocks, like AMC Entertainment (AMC), have risen by up to 30% in the last week.

Correlation between meme stocks and bitcoins (The Daily Shot)

The DeFi system still lags

Decentralized finance (Defi) tokens, on the other hand, continue to trail huge market value cryptos.
The graph below compares CoinDesk’s Defi Index (DFX) to CoinDesk’s Large Cap Index (DLCX). The spread between DLCX and DFX has expanded in recent months, indicating that crypto investors are less willing to take risks.
Nonetheless, recent Defi token rallies may result in outperformance vs large-cap tokens, similar to what happened in mid-2021. Devi tokens, for example, such as AAVE and AMP, have risen by up to 9% in the last week, compared to a 7% growth in BTC during the same period.

Cryptocurrency roundup

  • Dogecoin reaches a one-month high as an ATM operator expands its crypto offerings: Dogecoin (DOGE) hit a one-month high on Thursday, a day after Bitcoin of America announced plans to add support for the doggy-themed cryptocurrency to its network of over 1,800 ATMs in 31 states. DOGE’s price has risen by up to 6% in the last 24 hours, reaching $0.141 at one time throughout the day, the most since February 21.
  • Diplo teams up with Nas for an NFT drop on the tokenized royalties platform Royal: Royal, a cryptocurrency music business, has signed Diplo as its first celebrity, saying Thursday that the DJ and electronic artist will release one of his new tracks on the tokenized royalties platform. According to CoinDesk’s Eli Tan, the royalties rights for the track “Don’t Forget My Love” will be contained in what the platform terms “Limited Digital Assets (LDAs),” which are effectively Polygon-based non-fungible tokens (NFTs).
  • This year, SK Square in South Korea will introduce a crypto token: SK Square, a subsidiary of SK Group, South Korea’s third-largest corporation in terms of sales, intends to introduce a cryptocurrency before the end of the year. The token will be the first of its kind to be issued by any of South Korea’s top ten corporations. According to the Korea Economic Daily, the cryptocurrency is intended to integrate virtual economies throughout the group’s companies. According to CoinDesk’s Eliza Gkritsi, it will be utilized in SK Telecom’s metaverse platform Ifland, SK Planet’s membership program, and 11ST’s e-commerce services.

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