Not only block reward reduction plays a role, here is some points I outlined elsewhere, copying to this thread:

1) Dogecoin has a strong developer Langer_hans, who is very active and recently released version 1.8 which supports auxPoW, which means other scrypt coins are starting to add to the hashrate of Doge.

2) Doge has bottomed and not going any lower (lowest was 20 satoshi), it takes only a few bitcoins to keep it afloat above that level, while Litecoin still has a lot of downside.

3) Doge community is second to Bitcoin only, and the school year just starting, the community will grow more as kids are back in school and share their passion with friends and actively involve them in (for) Dogecoin trading.

4) Dogecoin has a lot of coins, which some think looks bad, but in reality it appeals to people's self-importance, which is especially attractive to kids, and hence Doge will continue to have a large audience.

5) Doge is being added to twitch.tv as a tipping tool this week, it has a very good chance to become a tipping coin of the Internet, again due to its large coin base, which enlarges adoption by orders of magnitude. Other developers are making tipping tools that use Doge for other popular websites too.

6) Dogeparty project.