From humble beginnings as a meme to all-time highs and a celebrity fan club, Dogecoin hasn’t done too badly.
The coin exploded in popularity over the course of the last few years. Now many more investors are now wondering whether the cryptocurrency could be a great investment for them, both short and long-term.
We’ll be looking at the latest dogecoin news, including price and predictions, to help you decide.
Dogecoin was created by software engineers Billy Markus and Jackson Palmer in 2013 as a joke. Yes, you read that right.
The engineers were disenfranchised with the entire cryptocurrency market and set out to prove that anyone could make a cryptocurrency with Dogecoin. They took the beloved Shiba doge meme and Dogecoin was born. It is based on Litecoin.
The internet found this hysterical and began heavily investing in the currency, with more than a million visitors to the site in the first 30 days. Dogecoin’s price jumped from $0.00026 in value to $0.00095 in a month.
Since then, the coin has developed an almost cult-like following. The dedicated dogecoin subreddit has more than 2.1 million subscribers discussing their portfolios and, of course, sharing memes.
At the time of writing, Dogecoin price is $0.1923, with a $1,087,329,152 trading volume and a 22.81 billion market cap.
Dogecoin Historical Performance
Every wise cryptocurrency investor knows that historical performance is not an indicator of future performance. However, knowing where doge has been over the last year helps answer the ever-pressing question: will dogecoin ever hit $1?
Like all cryptocurrencies, Dogecoin has its fair share of ups and downs. Only three days after its original all-time high mentioned above, the coin crashed by 80%.
By 2014, Dogecoin surpassed the trading volume of Bitcoin and all other cryptocurrencies combined, although it was only a temporary phase.
In more recent times, there was another spike in price in 2020 thanks to a TikTok trend trying to get Dogecoin to $1.
But 2021 revealed itself as the most exciting year for Dogecoin yet. In January, Dogecoin price shot up by more than 800% in 24 hours hitting $0.07. This was due to a huge amount of interest sparked by Reddit users involved in the GameStop short squeeze.
By February, celebrities jumped on the bandwagon and the coin hit $0.08. Notable fans include Elon Musk, Snoop Dog, and Jake Paul.
The entire cryptocurrency market experienced a surge throughout April 2021. But all good things must come to an end and the bubble burst on May 8th. Dogecoin value plummeted by 43.6% to $0.401, losing $35 billion respectively.
Current Dogecoin News and Predictions
As with all cryptocurrencies, the future of Dogecoin depends on who you ask.
Michael Burry, famed for his prediction of the 2008 financial crash, predicts “the mother of all crashes” for cryptocurrency. Dogecoin is no exception to this prediction. The investor believes the entire market lives in a speculative bubble, one that will burst in the near future.
Elon Musk’s relationship with cryptocurrency is a little more complicated. Though he is a vocal supporter of cryptocurrency, his influence causes huge waves in the market. For example, the most recent Dogecoin crash coincided with Musk’s appearance on Saturday Night Live which featured a skit on Dogecoin.
The entrepreneur has high hopes for the coin’s future though. The day after the crash he announced a rideshare mission to the Moon, funded entirely by Dogecoin.
Other investors agree that he’s right to have high hopes. Dogecoin has immense potential compared to other competitors. For starters, unlike many cryptocurrencies, you don’t need much previous knowledge to invest thanks to how user-friendly it is.
This means the power is in the hands of people, which is apparent by the huge communities of small investors the currency has built.
One of the key benefits that separates Dogecoin from the crowd is that it is inflating, rather than deflating. For example, Bitcoin has a hard supply cap due to how formulated it is. There is a limit to how many bitcoins can exist, capped at 21 million.
For Dogecoin though, there is no limit. There are more than 129 million doge tokens in existence now, but there is no limit to how many can be mined in the future.
Short vs. Long-Term Investments
As highlighted above, the cryptocurrency market is volatile right now, to say the least. This means predicting a short-term investment is almost impossible.
The untethered nature of blockchain allows for huge price fluctuations affected by a variety of external factors. Something as simple as Elon Musk tweeting that he sold his investment in the currency could cause a huge crash.
This means for short-term investments, the risks are high. For some, like the community on Reddit, this seems to be part of the joy of the coin.
For long-term investments though, Dogecoin represents a significant potential opportunity. It has weathered and even thrived in all kinds of economic circumstances and held its own as one of the leading cryptocurrencies.
Additionally, the sheer volume of the currency means that it has the potential to be used as a practical currency rather than an asset.
All this to say, by the end of the year, it’s entirely possible Dogecoin will hit $1. By 2025, some analysts state the price could realistically hit around $1.96 on the high end. For fans of the coin, the moon is the goal and Dogecoin may well get there.
More Cryptocurrency News
Like all cryptocurrencies, dogecoin exists in a volatile space. For those who can handle the stress, the coin presents both a significant opportunity and risk. Investors should stay ahead of the curve by keeping up to date with the latest Dogecoin news and predictions.
You can find more cryptocurrency and business news on our blog, so be sure to check it out.