Dogecoin falls to a level not seen since 2023

DOGE fell to a three-year low despite the approach of the launch of DogeOS, an application layer intended to accommodate DeFi, gaming and predictive markets. This divergence shows that technology alone will not be enough. Dogecoin must now convert its community into active users.

Dogecoin Crashes as Whales Hoard

While Dogecoin Labs has just seen the light of day, the crypto hit $0.0645 on November 12, a level not seen since October 2023. The token broke its old support close to $0.0694, erasing the base on which its summer recovery was based.

The decline goes beyond just the daily movement of the market. Several indicators show that DOGE remains locked in an unfavorable trend:

• The price has lost around 15% in a week;
• The drop reached 21% over one month;
• The decline since January amounts to 44.5%;
• DOGE is moving below its major exponential moving averages;
• The closest resistance is around $0.074.

The token will need to reclaim the old support zone to make a rebound more credible. Below, the $0.060 threshold could quickly attract the attention of traders,

This weakness persists despite a reported purchase of 1.8 billion DOGE, valued at around $122 million, by large wallets. The information, however, comes from a crypto commentator and does not identify the buyers or determine whether it is a sustainable accumulation.

DogeOS wants to turn holders into users

Faced with this fall, DogeOS seeks to correct Dogecoin’s main economic weakness. Millions of people hold the token, but have few means to use it other than as a means of payment, speculative asset or tipping tool.

Jordan Jefferson, general manager of DogeOS declared :

We all love Dogecoin, but there wasn’t much to do except buy it, hold it, send it to friends, and tip. But what if you could do more fun things?

DogeOS must provide a layer compatible with the Ethereum environment without directly modifying the main Dogecoin blockchain. Developers will be able to create exchange platforms, lending services, stablecoins, games or predictive markets. DOGE will be used in particular to pay fees.

The first version is completed and the audits have been carried out. Jefferson Says Mainnet Launch Is Now “very, very close”without however announcing a precise date. More than 100 developers are already working on projects, while integrations with wallets and exchange platforms remain a priority.

The public testnet has been operating since September 30. Among the announced projects are a liquidity platform, a lending protocol, a perpetual contracts exchange, a crypto-backed stablecoin and several games. Their availability will nevertheless depend on their own development schedule.

The real test will be demand, not launch

DogeOS can increase the utility of DOGE without automatically causing its price to rise. To create sustainable demand, apps will need to attract deposits, generate transactions, and convince users to hold DOGE in order to pay fees or access services.

History calls for caution. Dogechain had already attempted to bring financial applications to Dogecoin in 2022. After attracting several million dollars, today its protocols would only hold a few hundred dollars. Shibarium, associated with Shiba Inu, also holds much less capital than at its peak.

DogeOS will also have to pass a security test. In its first version, the network relies on selected validators, an authorized sequencer and a secure hardware environment. Dogecoin miners do not yet directly verify the proofs produced by this layer.

A update proposed, called OP_CHECKZKP, should allow the Dogecoin blockchain to verify these cryptographic proofs. However, it is not yet activated. Until it is, users of DogeOS applications must place additional trust in the operators of this infrastructure.

The launch of the mainnet will therefore only be the first step. The decisive indicators will be the number of active users, value deposited in applications, transaction volumes and the share of fees actually paid in DOGE. Without this adoption, DogeOS will add features without solving the problem that the Dogecoin price has just highlighted: available infrastructure only has economic value if it is used.