It was on May 7, 2021, that Dogecoin prices reached an all-time high of $0.702987. Considering the fact that it was trading for $0.007195 on January 1, 2021, the cryptocurrency has seen an insane price rise of 9,670% in the last four months.
There is no question about the fact that Dogecoin is in the throes of a speculative price bubble. If you trace its journey, at least in the last few months, the rise of Dogecoin looks fairly similar to a massive practical joke that is wreaking havoc across the crypto-investment space.
It was Elon Musk who said,
Dogecoin was invented as a joke, essentially to make fun of cryptocurrency.
According to Musk’s posts on Clubhouse,
But fate loves irony. The most entertaining outcome and the most ironic outcome would be that dogecoin becomes the currency of the Earth in the future.
The world is now buzzing with cutthroat developments in the cryptocurrency space. The prices of Dogecoin, along with Bitcoin and Ethereum, have been soaring.
Is this part of the “Musk Effect”?
Or does it speak of a deeper revolution?
Read on to find out.
Dogecoin is a cryptocurrency named after the ‘Dog Meme’ introduced on December 6, 2013. The dogecoin represents the face of the Shiba Inu dog that is also its logo.
This currently viral cryptocurrency was invented by IBM software engineers Jackson Palmer and Billy Markus with an aim to develop a payment system that is fun, instant, and free from traditional banking fees. In very little time, dogecoin created its own online community. As of May 8, 2021, its market capitalization stands at US $69.964 billion.
Since it emerged from a joke, people also refer it to as the “joke” currency. This cryptocurrency market quickly transformed into a thriving community and is still a popular digital currency altcoin. It is witnessing regular use as a transfer of value.
As it has fast speeds and low fees, it is often employed to transfer money from a cryptocurrency exchange to another. As if this popularity wasn’t enough, Elon Musk has been constantly tweeting about the dogecoin for the last few days. Not to mention, but this is one of the reasons why people nowadays are more inclined to this digital altcoin.
Now that Dogecoin has been around for a long haul, it has created a place in the crypto space for the long term. Nevertheless, Dogecoin price predictions are rare and hence, when we compare it to other crypto assets such as Bitcoin, Litecoin, EOS, and Ripple, it is relatively low.
Dogecoin uses a Scrypt algorithm and is a derivative of Luckycoin which cleft from Litecoin. 1US Dollar = 1.544822 Dogecoin (DOGE)
One can find various online exchanges offering DOGE/LTC and DOGE/BTC trading.
Dogecoin is primarily used for tipping internet users to provide noteworthy and interesting content. Recently, it was just a matter of a TikTok trend where people tried to pump and dump the Dogecoin price.
Its other uses are in the poker and pornography industries. Besides, a few people also used it to try to sell a house.
In exchange for DOGE, one can trade physical and tangible items on online communities such as Reddit and Twitter. These are platforms where people frequently share currency-related info.
If you compare the price chart of Dogecoin with other altcoins existing before 2017, you will witness a dramatic price hike in 2017 when the cryptocurrency bubble inflated and Bitcoin surged to $20,000.
Since it trails the entire cryptocurrency market, it’s obvious to expect Dogecoin growth to continue alongside the Bitcoin and rest of the market.
To provide you with better insight, we have presented a more direct Dogecoin price prediction employing technical analysis for years from 2020 to 2025. Predicting price beyond 2025 is too difficult and are just complete speculation.
Dogecoin is almost going to be a decade old now and hence, it won’t be wrong if we say it’s one of the oldest crypto altcoins. However, the asset fell into a long-term downtrend when the dogecoin hit an all-time high of $0.018773 in early 2018.
That was the time when the future outlook appeared extremely bullish.
In 2019, things seemed to be taking a U-turn. Various other top cryptocurrencies began to see a resurgence and Dogecoin slithered away from the spotlight.
The trend reversed again in 2020. Dogecoin got a powerful hike due to TikTok users trying to pump and dump the coin on Robinhood. The platform encouraged its users to buy Dogecoin hoping it will reach the projected value of $1 per Doge token.
But due to the market capitalization of the altcoin, potential estimated growth in Dogecoin price like that isn’t possible. However, this doesn’t mean that dogecoin value doesn’t exist. We can say that it’s just a maximum any asset can spike based on its market cap, irrespective of the future price target of Dogecoin or what speculation predicts.
According to Nithin Kamath,
I can’t really make any sense of what is happening with Dogecoin. With no checks in place, the risks of some of the currencies like Dogecoin being a pump and dump scheme is quite high.
Since the supply and Dogecoin future distribution is limitless, most of Dogecoin price targets are low. But it doesn’t mean that one cannot predict Dogecoin long term price. The fact is that the dogecoin trend hasn’t always been encouraging, leaving it up in the air.
In fact, Elon Musk himself has warned cryptocurrency enthusiasts to keep their wits about them.
Cryptocurrency is promising but please invest with caution.
Now, let’s find out the price prediction of dogecoin for different years.
According to FX Street, “Dogecoin has entered a phase of bullish consolidation after recording fresh all-time highs at $0.7558 on Friday.”
In 2021 and 2022, Dogecoin is expected to break its downtrend line and create another dramatic rise of identical amounts. With the measure rule, experts are forecasting that the price per DOGE may reach $0.80.
Following the current trends, we can say that the day isn’t far when dogecoin will amount to 1 USD.
There is no question of the fact that Elon Musk has been openly supporting Dogecoin. Consider his tweets below on the subject.
But the question arises- is this the only reason why dogecoin price went up high?
No. This isn’t the sole reason, there are a few more.
The army of amateur traders is another biggest reason why shares of Dogecoin skyrocketed. They targeted the games retailer which caused professional hedge funds who’d shorted it to lose billions.
However, the surge in DOGE resulted in making some serious cash for amateur traders. They bet that the stocks would drop in value so they can make a profit when they return them back to the company they borrowed from.
The amateur traders depend on the failing company, thereby creating a risky way of raising cash for themselves.
Well, it varies from individual to individual. You need to keep yourself updated about all the risks involved in the cryptocurrency market and must act accordingly. This will help you avoid any pitfalls in case you wish to invest.
Dogecoin can be speculated to rise in value at a reasonable price. But one can’t say that it can be anywhere near the same prices as Litecoin, EOS, Ripple, Ethereum, and Bitcoin. Because of this, it’s a little difficult to say that investing in a Dogecoin would be a good investment when there are so many better choices available.
However, nobody can be 100% sure of the future forecasts as the market is full of volatility. There are chances that it can boom, on the other hand, there are several risks associated.
So, to ensure you don’t get in the clutch of any mishap, stay updated with the current stock market news.
Follow FinnovationZ Convey on Instagram where we try our best to enlighten you with every day updates and changes in the stock market world. Don’t forget to subscribe to us on YouTube, we create amazing content on IPO, case studies of companies, etc.
Also, subscribe to our weekly newsletter so that you don’t miss any of our blog updates of the week.
If you are a budding trader or stock market investor, then we recommend you must explore our complete stock market course on our website. We assure you it will help you master the best trading and investing techniques in the end.
Until then, happy investing!