Dogecoin (CRYPTO: DOGE) is having a good time. The meme coin is up 3.56% in the last 24 hours. It is currently trading for $0.2329. It provided returns of 34.16% last week, and is up 41.76% in the last month.

Recently, the meme coin has been making headlines due to an announcement from the Securities and Exchange Commission (SEC) for its 21Shares (NYSE: 21S) Dogecoin ETF.

On Tuesday, the SEC put the 21Shares’s Dogecoin ETF proposal. While a delay is typically seen as negative, in this case, the context is positive.

The SEC has requested public feedback on the 21Shares Dogecoin ETF. It signals that the agency is seriously contemplating the ETF.

Since the current administration took office, the SEC has become significantly more lenient on crypto. It has dismissed many crypto lawsuits and shown openness to new ETF structures, like in-kind redempptions.

The decision is important for Dogecoin because ETF approval, even pending, tends to legitimize a token in the eyes of institutional investors.

If the 21Shares Dogecoin ETF is approved sometime in the coming months, it would be the first time that a meme coin is given such formal financial treatment. This may lead to even more capital flows into the asset.

On broader market performance, Dogecoin was one of the week's top performers. Additionally, crypto markets reacted positively to April's consumer price index, which was surprisingly lower than expected. A lower price index may lead to a rate cut by the Federal Reserve later this year. If this happens as the markets hope, it will be beneficial for risk-on assets such as cryptocurrency.

Adding to the optimism, Coindesk reported that the Fear & Greed Index, a popular sentiment indicator, has remained in “greed” territory for four consecutive days. It implies a strong demand from investors. While some traders have warned against short-term profit-taking due to the surging dollar and ongoing trade tensions, Dogecoin has continued to benefit from the momentum wave.

Dogecoin is demonstrating that it possesses surprising resilience and long-term staying power within the world of crypto. Its steady trading volumes, community backing, and recent price action are generating significant interest.

The coin has now achieved a market cap of over $35.09 billion. If Dogecoin ultimately gets the ETF approval and the market conditions remain favorable, it won't be wrong to say that Dogecoin could rise from the meme coin stigma, and find a stable place in institutional investment.

For now, Dogecoin is doing really well be it on speculative terms, crypto market signs, or signs of institutional adoption. Whether or not the rally will continue will depend on regulatory decisions and overall market forces, but Dogecoin is certainly back in the game.