After its success in 2021, Dogecoin ($DOGE) quickly became a staple in the cryptocurrency market. It is now almost synonymous with the word memecoin after kickstarting that subsector of the industry.
Known for its volatility, DOGE’s rise to popularity came after endorsements from Elon Musk, CEO of Tesla and SpaceX. But it has struggled to hold onto most of these gains and is currently down 89% from its all-time high.
While DOGE price predictions are mixed, some still expect new price records are possible.
What is Dogecoin?
Dogecoin was initially created as a joke in 2013, when it forked from the Litecoin ecosystem. However, it has since evolved into a significant player in the cryptocurrency market. This digital currency, symbolised by the Shiba Inu dog from the ‘Doge’ meme, was developed by software engineers Billy Markus and Jackson Palmer.
Unlike Bitcoin, which was designed with a cap to limit the number of coins in circulation, Dogecoin has an unlimited supply, making it an inflationary coin. This characteristic sets it apart from other cryptocurrencies, which are often deflationary.
As DOGE forked from Litecoin ($LTC), it uses a proof-of-work model where participants known as miners verifying transactions and adding them to the blockchain. In return, miners earn additional Dogecoin, which they can hold or sell on the open market.
However, there were rumours in 2021 that it could switch to a proof-of-stake model. But this is yet to actualise two years later.
Dogecoin’s influence on the crypto market
The influence of Dogecoin extends beyond its technical aspects as it has significantly impacted the broader cryptocurrency market.
A key figure in this narrative is Musk. His interest in Dogecoin, often expressed through his tweets, has played a substantial role in the cryptocurrency’s popularity and value fluctuations. His statements have been known to cause significant market movements.
Dogecoin’s rise, fuelled partly by Musk’s attention, has also shaped the memecoin industry. Memecoins, typically created as jokes or with whimsical themes, have gained serious attention from investors and traders, riding on the coattails of Dogecoin’s success. This phenomenon has led to a surge in the creation and trading of other memecoins, each vying for a spot in his volatile market.
DOGE utility
Beyond its role as a digital asset for investment, Dogecoin has found a unique place in the world of online communities. It is widely used as a tipping system on platforms like Reddit and Twitter, where users reward each other for creating or sharing content that they find valuable or entertaining.
It can also be used as a payment method. Its website said: “Over the years, it became possible to use Dogecoin and spend it in online stores.”
It added: “The past 2 years have seen an explosion in adoption, with Dogecoin payment integrations provided by third parties like BitPay and Coinbase and several providers providing prepaid cards supporting Dogecoin as a funding source.”
Dogecoin price history
Despite launching at the end of 2013 around the $0.00029 mark, DOGE’s popularity came eight years later at the beginning of 2021. In addition to the bull market at the time, DOGE stood out from the wider crypto industry.
It was seeing attention from Reddit users as Wall Street Bets started to take off. Musk also posted several tweets about Dogecoin, further fuelling its popularity. His tweets, such as “Dogecoin is the people’s crypto,” played a significant role in driving up the price.
Afterwards, DOGE surged to a high of $0.07, breaking its previous price record.
Dogecoin hit another new price record a few months later, reaching around the $0.40 level in April. This surge has been attributed to social media hype and celebrity endorsements, including continued support from Elon Musk.
It continued to soar, especially ahead of Musk’s appearance on Saturday Night Live (SNL) where he was anticipated to praise the memecoin.
DOGE climbed to its all-time high of $0.73 on 8 May and has yet to reach that level again. It soon after crashed as Musk joked about the memecoin on SNL. It corrected back to the $0.40 mark by the end of the month.
Despite a few peaks with the wider market, DOGE has been on a downward trajectory since this price record. It closed 2021 below $0.20 and fell to $0.06 with the crypto crash of summer 2022
To date, DOGE has roughly stayed around this level since this crash. It did see some momentum at the end of 2022, which coincided with the completion of Musk’s takeover of Twitter. The now-Twitter owner even replaced the bird logo with a picture of Doge. This has since changed after the rebrand to X.
But 2023 has been fairly uneventful for the memecoin’s price. At the time of writing, it was trading at $0.082, up 9% in the past day, and 7.6% in the previous week.
Dogecoin price prediction
There were some mixed DOGE price predictions, both in the short and long term.
FX Street was bullish, stating the memecoin “is coiling up for a move to the $0.100 target, approximately 30% above current levels”. The publication highlighted $0.076 and $0.080 as a key supply barrier. Its Dogecoin price prediction for 2023 said a break above the $0.078 level “would confirm the continuation of the intermediate trend, side-stepping the bearish energy.”
CoinCodex said sentiment around the crypto was also bullish. Its DOGE crypto price prediction said only seven out of 29 indicators signalled sell. The site anticipated a climb to $0.077 in five days time, but falling to $0.064 in a month.
Meanwhile, DigitalCoinPrice offered a optimistic long-term DOGE forecast. It anticipated the memecoin to average out at $0.15 this year. The site’s Dogecoin price prediction for 2024 gave a maximum price of $0.21. This figure was anticipated to reach $0.28 in 2025 and a new all-time high of $0.84 was projected in its Dogecoin price prediction for 2030.
Gov Capital similarly anticipated steady gains. Its DOGE token price prediction said it would climb to $0.20 in a year and rocket to $0.79 in five years’ time.
WalletInvestor gave a bearish outlook with its DOGE price prediction, stating that it was a “bad” investment. It anticipated the memecoin to fall to $0.007 in a year. The site’s Dogecoin price prediction for 2025 expected it to be a maximum of $0.022 at the beginning of the year.
FAQs
Should I invest in Dogecoin?
It depends. DOGE price predictions are mixed, with the likes of DigitalCoinPrice extremely bullish over its long-term bullish, while WalletInvestor said there is currently “bearish” sentiment.
The cryptocurrency market is known for its volatility and you should never invest more than you can afford to lose.
Is Dogecoin a good investment?
Dogecoin was founded in 2013 as a joke and has since become a staple of the crypto market. While DOGE saw success with the bull market in 2021, it has proved vulnerable to the recent crypto winter. Investors should be cautious and always conduct thorough due diligence.
Disclaimer: The information provided in this article is for informational and educational purposes only and should not be construed as financial advice. CoinNews and its authors are not financial advisors or experts. We recommend that you consult a professional financial advisor or conduct thorough research before making any investment decisions. Cryptocurrency investments carry a high degree of risk, and you should only invest an amount you are willing to lose. The opinions expressed in this article are those of the author and do not necessarily reflect the views of CoinNews or its affiliates.
