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What is Dogecoin?
DOGE is a meme-inspired cryptocurrency featuring a Shiba Inu dog image with comic sans phrases. It was created in 2013 from a fork of Litecoin's codebase by Billy Markus as a joke token with the aim of attracting mainstream attention. It gained popularity in 2014 but saw explosive growth six years later.
In mid-2020, a viral video on TikTok created a chain reaction, causing the price of DOGE to jump sharply. The low price per coin of DOGE at the time caused demand to snowball as more investors believed they could get rich if the price hit $1 – and it almost did, achieving an all-time high in mid-2021 of $0.74. Another significant catalyst for DOGE’s development is Elon Musk, a business magnate who has talked about the project publicly on his Twitter account. Just as Elon latched onto this meme coin, so too have other investors who generate and consume content in the DOGE space, invest in digital currency for use cases more than profits and those who want to diversify in the crypto market.
Similar to BTC and LTC, Dogecoin operates under a proof-of-work consensus mechanism. The system is decentralized, meaning that no central authority controls it. Instead, Dogecoin is run by thousands of computers distributed around the world and supported by a technology known as a blockchain — a decentralized, distributed ledger that records the provenance of a digital asset.
At the same time, Dogecoin can be used to complete a retail transaction online, as Elon Musk and others have promised to accept this token in-person and online. The crypto space is expanding, and now you have the option to do your own research and come to a conclusion based on what you find at Benzinga.
Will DOGE Go Up?
Dubbed the people’s currency, Dogecoin made more headlines than nearly any other cryptocurrency investment during the 2021 bull market. Its price skyrocketed from 2 cents in 2020 to $0.69 at its peak in May of 2021. Early investors made over 10x in a matter of months, but those who got in during the market mania have lost the majority of their investment.
As of the beginning of 2024, DOGE is down around 90% from its all-time highs. With little innovation stemming from the project, investors may wonder, will Dogecoin go up, or is the meme token destined for failure? Could DOGE reach back up to its highest price? It’s possible, but the circulation of the token may have to increase beyond belief to make that possible.
Will DOGE Go Past All-Time Highs?
For Dogecoin to surpass its all-time highs, its market cap would need to reach nearly $100 billion. This valuation would make Dogecoin more valuable than most Fortune 500 companies, including Airbnb, PayPal and BMW. DOGE has survived past bear markets and is one of the oldest coins still being actively traded. Given its long history, Dogecoin may be here to stay. At the same time, market sentiment could shift at any time.
To answer whether or not Dogecoin will reach new all-time highs, you may want to ask why Dogecoin is valuable in the first place. A cryptocurrency token based on a meme, offering little real utility, probably shouldn’t be worth billions of dollars – so why is it?
DOGE is valuable because of the passionate community that supports it. Trading since 2013, the token has accrued a community of investors including Elon Musk, Gene Simmons and Snoop Dogg. Many of these investors voice their support on social media, onboarding new users to try out DOGE. As of January, 4 million people have invested in Dogecoin.
Why Is It Going Down in Price?
Dogecoin has been decreasing in price for several years. The drop doesn’t come as a surprise because all cryptocurrencies have been in a bear market for some time now due to the collapse of Terra and FTX. Ever since the Fed began raising interest rates, the market has shifted to be risk-off, curbing most investors’ appetite to buy into the crypto markets.
Generally, altcoins are more volatile than established cryptocurrencies like BTC and Ethereum. While this status may be lucrative in a bull market, most altcoins have dropped over 90% from their peaks during the bear market. At the same time, speculating on altcoins or popular cryptocurrencies can be profitable if you take brief positions and research the crypto world well.
Dogecoin’s price has been impacted by the type of investor it attracts. DOGE holders are often more casual investors than those investing in tokens with good fundamentals or innovative use cases. Consequently, fewer Dogecoin investors hang around during a bear market, as many are primarily concerned with the token’s price. When DOGE price action cooled, many casual investors began to seek out the next hot investment, leaving the crypto sector.
Market Position
Dogecoin’s growth is largely predicated on market sentiment. During extremely fearful times, DOGE underperforms; however, during euphoric times, Dogecoin has the potential to explode in popularity.
When analyzing Dogecoin’s market position it's important to distinguish between market capitalization and price. DOGE’s low price can be deceiving to new investors, causing them to inaccurately gauge Dogecoin’s price potential. Market capitalization is calculated by multiplying the total circulating supply of coins by the current market price of a single coin. It measures the total value of a cryptocurrency on the open market and can be useful for determining growth potential.
Generally, if DOGE were to reach $1 investors would experience a return of over 10x. Under the right market conditions, this price is definitely achievable; however, it assumes that Dogecoin still remains relevant in the next bull run. However, If DOGE’s price were to reach $10, Dogecoin would need to reach a whopping market value north of $1.3 trillion. This value is more than the current market cap of the entire cryptocurrency industry. As a result, when making realistic price predictions, it’s paramount to take into account market capitalization.
Bullish Long-Term Price Prediction
Walker Holmes, the co-founder of MetaTope — a non-fungible token (NFT) project — is bullish on DOGE with the foresight that Elon Musk sticks with the project and continues to endorse it. While Holmes did not provide a price prediction, he justified his stance by the fact that Doge has a great community and “has the ability to attract a culture of content creators and creatives.” Musk's purchase of Twitter, a vital artery of communication for the cryptocurrency work, could be massive if he continues to support it.
Holmes’ prediction is further supported by other experts in the space, such as Gavin Smith – general partner of crypto hedge fund Panxora. Like Holmes, Smith explains Dogecoin’s persistence by pointing to the project’s large and loyal community.
Kevin He’s Bearish Long-Term Price Prediction
Kevin He, chief operating officer at fintech firm CloudTech Group commented that the birth of Dogecoin was originally a joke, and added: “We believe that cryptocurrencies like Dogecoin, which are completely useless and the value is purely supported by the community, will not gain value in the future.”
Changelly’s Bullish Long-Term Price Prediction
Changelly is a useful tool that can be used to try to predict the future prices of Dogecoin and many other digital assets. It offers a wide range of forecast data that it derives through artificial intelligence and market research. Overall, Changelly suggests that DOGE’s price should increase over the next few years, although not without risk.
Moreover, it is important to note that historical performance does not predict future performance. Prediction tools can be useful; however, they are by no means accurate, especially for longer-term predictions. For a more thorough prediction, it is important to consider both historical price performance and the macroeconomic backdrop, among other factors.
2024 Price Prediction
Changelly has an optimistic outlook on Dogecoin in 2024. The minimum DOGE price is predicted to be $0.13 in 2024, while its maximum price can reach $0.16. The trade price will typically be about $0.13. From current prices, this would be over a 40% return on investment (ROI).
Can It Still Hit $1 In 2024?
While the cryptocurrency market is famous for moving quickly in both directions, it's unlikely that Dogecoin will hit $1 in 2024. The market remains risk-off, and the amount of capital needed to bring DOGE to $1 is in the tens of billions.
A more realistic timeline for Dogecoin to reach $1 would be during another cryptocurrency bull market. For DOGE to hit $1, the broader crypto market would likely need to see trillions of dollars flow into it. Bitcoin’s next halving is scheduled for mid-2024, and historically, BTC halvings have preceded cryptocurrency bull markets. If a bull market follows the 2024 halving, then a market cycle peak may be in order around 2025.
2025 Price Prediction
Changelly envisions a bright future for Dogecoin in 2025, with a predicted minimum price of $0.27 and a possible high of $0.33. The expected trading price hovers around $0.28, offering a handsome 200% ROI based on current prices.
2030 Price Prediction
While 2030 may seem far away, Changelly still has provided price predictions for Dogecoin. Note, it is important to take this prediction with a grain of salt given how far it is in the future. This prediction rests on the assumption that both the crypto market and Dogecoin will maintain their significance.
Changelly predicts DOGE will be traded for at least $1.85, with a possible maximum of $2.21. As a result, on average, you could expect the DOGE price to be around $1.90 in 2030. This would yield a colossal return of 2000% if it were to occur.
Where to Buy Crypto
Dogecoin can be traded on major exchanges such as eToro, WeBull, Uphold and Gemini. Many of these platforms allow you to purchase Dogecoin using your credit card, through swapping features or through different trading pairs such as DOGE/USDT.
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