Amid heightened speculation in the cryptocurrency market, Dogecoin (DOGE) gained attention once more, surging over 8% on Tuesday and sparking renewed discussions about the possibility of a Dogecoin Exchange-Traded Fund (ETF) being approved.

The recent price rally has boosted investor and analyst optimism, with many attributing this to Dogecoin's practical applications and increasing adoption as key drivers for regulatory approval.

Andrew Kang, a well-known crypto venture capitalist, suggested a DOGE ETF might be likely, pointing to the potential approval of a spot Ethereum ETF.

“With significant political pressure for crypto regulation to be assigned to the CFTC, the chances for a DOGE ETF look better than ever,” Kang tweeted on Monday.

This aligns with his March comments, where he estimated the chances of a DOGE ETF approval to be over 30%, given the evolving regulatory environment and potential developments.

Elsewhere, Dogecoin investors like Vee have shown confidence in Dogecoin’s future, highlighting its longstanding presence and widespread adoption by businesses globally.

“After Bitcoin, and possibly Ethereum, venture capitalists expect a Dogecoin ETF to be approved by the SEC,” Vee tweeted. “Despite starting as a joke, Dogecoin has been in use for 11 years and is adopted by numerous large and small businesses worldwide. There are pros and cons to the potential approval of a DOGE ETF.”

Investors also share this optimism, with analyst Matthew Hyland noting a “clean inverse head and shoulders” pattern on the DOGE daily chart, suggesting that closing above the neckline could push the price to $0.24 soon.

Analyst Ali Martinez echoed this sentiment on Wednesday, stating, “History doesn’t repeat itself, but it often rhymes!” referring to a tweet from earlier this month suggesting that Dogecoin’s current price action could indicate another significant bull run similar to past cycles.

Data from IntoTheBlock shows large transaction volumes for Dogecoin increased by 31% to $1.53 billion, and daily active addresses grew by 5.4% to 57,930. Transactions over $100,000 have also risen, indicating growing interest from institutional investors.

At press time, Dogecoin was trading at $0.1668, up 1.23% in the past 24 hours. With 85% of Dogecoin holders currently in profit and total exchange inflows exceeding outflows, market sentiment remains largely bullish.