The price of Dogecoin has pumped 100% in the last week of October, bringing almost two-thirds of Dogecoin wallets into profit.

New data from IntoTheBlock shows that 62% of Dogecoin holders are making money at the DOGE price of $0.12. A further 5% of Dogecoin holders are currently at the money while 33% are making a loss on their DOGE portfolio.

IntoTheBlock onchain signals show a 19% hike in the number of Dogecoin wallets currently in profit. However, this signal was the only bullish indicator for Dogecoin.

Dogecoin now most overbought since April 2021

On October 29 the Dogecoin price shot up 75%. It was the highest daily gain since April last year, when Dogecoin rallied to the all-time high of $0.74. No other price pump in the intervening 18 months has beaten these 24-hour gains.

So what happened the last time Dogecoin pumped so high in such a short amount of time? 

Dogecoin immediately fell -20% in price directly after the pump in April 2021. But it wasn't the end of the DOGE rally. The token continued to receive attention as Elon Musk appeared on Saturday Night Live in May last year. Dogecoin went up a further 196% in price in the following fortnight.

But, as expected, the Dogecoin price has fallen consistently until the bear market this year. The Dogecoin price was back where it was before the pump in April 2021 – and then came news of Elon Musk's Twitter takeover.

If news remains bullish, there's a chance prices could continue to rise.

Will Twitter create a bull market for Dogecoin?

These are the main ideas for how Twitter could use Dogecoin:

1. Musk has discussed the idea of a blockchain-based Twitter before, where each post is like a transaction with a gas fee paid in DOGE
2. Musk has discussed mechanisms that fight spam and bot accounts using DOGE incentives
3. Musk has discussed allowing Twitter Blue subscriptions to be paid in DOGE

The first two ideas on this list have already been discredited by Musk himself. The final suggestion could indeed happen, as Musk has already allowed Dogecoin payments for Tesla merchandise.

But it's not clear this would keep Dogecoin prices up long term.

Watch out for Dogecoin's inflation

Most Dogecoin price pumps are based on speculation. But in actual fact Elon Musk has expressed a liking for Dogecoin's inflationary nature. Some 5 billion DOGE tokens enter supply each year, which helps to keep the price stable. 

This is in direct contrast to deflationary tokens like Bitcoin and especially hyper-deflationary tokens like EverGrow. 

EverGrow uses a number of revenue streams to automate buying tokens and sending them to a burn address. The main source at present is a 2% transaction tax, but this has been raised even higher by 100% of revenue from the LunaSky NFT marketplace going towards burning EverGrow.

In a social media context, EverGrow is about to launch a crypto-integrated app Crator which lets users set subscription tiers, put content behind paywalls and receive tips for their great content. Again, 100% of revenue will be used to buyback and burn EverGrow. The revenue of all app usage therefore trickles back down to EverGrow holders in true DeFi fashion. 

With EverGrow's impressive roadmap, experienced team and a market cap over 200 times smaller than Dogecoin, they may well offer the more attractive investment solution over the coming years. 

You can read more about EverGrow here: https://evergrowegc.com/.

The Dogecoin price might spike in the next few weeks depending on the news cycle – again, it might not, and could lose all its gains so far. A massive 62% of holders making a profit is likely to create selling pressure. 

Only 48% of Bitcoin holders are in the money right now, for example.