As cryptocurrencies were beginning to become more popular, it became easier for developers to launch their own cryptocurrencies. Usually, cryptocurrencies offer something new to the cryptocurrency market by distinguishing themselves with better or new services. It reached the point where some developers thought that they should make a ‘joke’ cryptocurrency so that people would take it less seriously. This was the case with Dogecoin, a meme-influenced cryptocurrency.
Even though Dogecoin started as a joke cryptocurrency it has risen in the ranks as one of the best cryptocurrencies of all time. With its market cap competing with the likes of BNB, ADA, or XRP, Dogecoin has become an incredible investment in 2021. In this article, we are going to focus on what makes Dogecoin so unique, as well as what its future may hold. Let’s begin with the fundamental features of Dogecoin.
Fundamental Analysis of Dogecoin
The name Dogecoin originates from an internet meme that was named ‘Doge’. This meme involved a Shiba Inu dog and is one of the most popular memes of the internet era. So the Dogecoin icon is also a picture of that Shiba Inu dog. It was created by Billy Marcus and Jackson Palmer in 2013.
Initially, Dogecoin did not have a wide audience as cryptocurrencies were not that popular as well. However, 2020-2021 has seen Dogecoin become one of the biggest cryptocurrencies in the world. A big role in this popularity played the likes of Elon Musk, the Tesla CEO, who single-handedly managed to become one of the biggest factors of the Dogecoin price.
Dogecoin resembles a lot of Bitcoin’s features; this is why the developers targeted the same audience as Bitcoin. It uses Proof-of-Work (PoW) consensus mechanism. To verify transactions, nodes need to compete with each other on which one solves a mathematical problem faster. The more powerful the processing power of the node, the higher the probability of successfully verifying a transaction. With each verification, a node is rewarded with additional DOGE tokens as compensation for the energy costs.
The block time for mining DOGE is 1 minute. It is planned to remain the same as there is no limit in the total supply of Dogecoin. To mine DOGE, you can use mining rigs and mine by yourself, join a mining pool, or simply use cloud mining sites for additional fees.
Dogecoin was perceived to have no utility besides transactions as it was simply made out of a joke. However, DOGE tokens are primarily used for community interaction. Users use them to fund various charitable organizations or other sorts of fundings.
To illustrate, the Dogecoin community raised funds for the Jamaican Bobsled Team to be able to afford the Sochi Winter Olympics. $36,000 was raised in just one day. Another fundraises was for building a well in Kenya. More than $30,000 was raised from the Dogecoin community.
Additionally, the Dogecoin community raised around $55,000 to sponsor a NASCAR racer. All these community interactions made Dogecoin a rather serious cryptocurrency, even though its background was an internet meme. In terms of tokenomics, Dogecoin does not have a limited supply. The circulating supply of Dogecoin is around 130 Billion DOGE.
Today, a lot of cryptocurrencies support Dogecoin. You can use several exchanges such as Binance, Coinbase, Bithumb, Huobi, etc. You must also store your DOGE tokens in a safe crypto wallet if you do not want your assets to be stolen. The best hot wallets that support Dogecoin are Binance, Kraken, Dogecoin Core, MultiDoge, etc. As for cold wallets, the best options are Ledger and Trezor.
Dogecoin Price Prediction 2021
If the media keeps promoting Dogecoin in the same way as they have in the past months, Dogecoin’s increase is inevitable. If people buy the current dip, and Bitcoin makes a comeback in the same way as it was projected in the previous bullish runs, the Dogecoin price can reach new highs.
It is predicted that the price of Dogecoin can exceed its highest of all time and also exceed the $1 milestone.
Dogecoin Price Prediction 2022
Dogecoin is likely to grow its community in the next 12 months. It is quite an achievement when you hear people talk about Dogecoin even though they do not know what cryptocurrencies are exactly. This suggests that Dogecoin can only keep increasing in terms of price. Moreover, the likes of Elon Musk plan to make Dogecoin an asset of the future, with plans to integrate it into his business agenda.
If the bullish run of Dogecoin continues in the next 12 months, it would be no surprise to see Dogecoin range from $2 to $5 in 2022.
Price Prediction For The Next 5 Years
Elon Musk has said on social media that he plans to send literal Dogecoin to the moon. With his SpaceX program, he plans to launch the Doge-1 satellite and fund the project using Dogecoin.
SpaceX launching satellite Doge-1 to the moon next year
– Mission paid for in Doge
– 1st crypto in space
– 1st meme in space
To the mooooonnn!!https://t.co/xXfjGZVeUW
— Elon Musk (@elonmusk) May 9, 2021
As an investor who has managed to change the price of Dogecoin simply with his tweets, a plan like this is likely to make Dogecoin an even bigger cryptocurrency.
Moreover, the Dogecoin team is looking to add new features to the Dogecoin blockchain in the future. As cryptocurrencies rise, the value of fiat currencies can also decrease as they are slowly replaced. A decrease in the USD means that the value of Dogecoin may further increase.
Due to these factors, Dogecoin may surpass $10 in the next 5 years.
Dogecoin Market Prediction
Wallet Investor predicts steady increases in the price of Dogecoin. They predict that Dogecoin can exceed $1 in the long run.
The Bitcoin Express
YouTuber The BTC Express predicts that there is a possibility of Dogecoin reaching $1 soon, depending on the market cap of other competing cryptocurrencies. A $1 price would mean that Dogecoin would exceed $100 Billion in market capitalization, placing it in competition with Ethereum.
This YouTuber also expresses the possibility of Dogecoin reaching $10 in the long run. This may only be achievable if institutional investors shift their focus from BTC or ETH to DOGE. Even so, it may be possible if a market cap of $1 Trillion becomes fairly normal for a cryptocurrency in the long run. That can be achieved if the USD loses more value or if the popularity of cryptocurrencies keeps increasing at the current rate. The latter is more likely to happen.
Our Dogecoin Prediction
We at CryptoAcademy predict that Dogecoin can go from $1.5 to $2 in 2021. This is based on the recent Twitter activity of Elon Musk, Dogecoin’s future plans, increase in popularity of cryptocurrencies in general, and another projected bullish run of Bitcoin.
As for the long-term price of DOGE, the price can go further than $10 in the next 5 years. If the Doge-1 satellite is successful, the satellite might not be the only thing that may go to the moon (but also the price of DOGE). Moreover, the BTC halving in 2024 might cause another bullish market in 2025.
Historic Market Sentiments
Dogecoin is launched in December of 2013 at a price of around $0.0002. The price went as high as $0.001 in the next few days, which then dipped again to the starting price.
The start of 2014 looked very promising for Dogecoin. The price was around $0.0018 in the first two months of that year, which was considered good since Dogecoin was just launched. However, despite the promising start of the year, Dogecoin had a bearish run, where the price went as low as $0.0001 for the rest of 2014. Some of the factors of this price decline might have been the launch of new cryptocurrencies such as NEO, Stellar, Monero, etc.
2015 saw Jackson Palmer, Dogecoin’s co-founder, leave the team for reasons that are still not very clear, even though he explained that he wanted to focus on other blockchain-based projects. While many had expected that this would further lower the price of Dogecoin, its price remained fairly consistent. The price ranged from $0.0001 to $0.0002 for the majority of 2015.
In 2016, the price was a little more volatile than the year before. In late January, the price went as high as $0.00045, but it then dipped again. In the following months, the price ranged from $0.0002 to $0.0003.
In the first quarter of 2017, the price was about the same as in 2016. By the end of April, the price started a bullish run, reaching as high as $0.0038. By the end of 2017, the price of Dogecoin went as high as $0.009.
Continuing the bullish run that started in 2017, Dogecoin kept increasing and reached a record of $0.017 in 2018. This marked an 8400% increase in one year. A bearish run followed after that, where the price of DOGE ranged from $0.002 to $0.006
2019 was another year where the price of Dogecoin was consistent throughout the year. The price ranged from $0.002 to $0.004 during this period.
Continuing that average price of 2019, 2020 saw another stability in the price of Dogecoin, as the price ranged from $0.002 to $0.004 once again
Within the first two days of 2021, the price of DOGE increased to $0.01. By February of this year, the price had gone as high as $0.08. The price averaged $0.05 in March. In April, Dogecoin started its most successful run yet, reaching as high as $0.30 within 10 days. But this was not the end of the run, as Dogecoin reached its highest of all time in May at $0.73. Compared to the price of DOGE on January 1st, this was a 14500% increase. To put that into perspective, if you would have invested $100 on January 1 of 2021, you would have had a profit of $14,500 in May. The price has dipped again to around $0.30.
It is worth noting that a huge impact on the price of DOGE is Elon Musk and his social media activity regarding Dogecoin.
With this price and a circulating supply of around 130 Billion DOGE, the market cap of Dogecoin is around $40 Billion. This market cap ranks Dogecoin at number 6 in the crypto market.
Is Dogecoin a good investment?
Judging by the forecasts by various experts that predict that the price of DOGE can increase in the future, Dogecoin is a very good investment. Even though it started as a meme, Dogecoin has become a must-have investment for so many traders.
Can DOGE price ever reach $1?
DOGE can easily reach $1 since its community is increasing, and a lot of future plans suggest that its demand may increase.
How to buy Dogecoin?
To buy Dogecoin, you can use various cryptocurrency exchanges such as Binance, Coinbase, Bithumb, Huobi, etc.
Is Dogecoin worth buying in 2021?
While many might view the current dip in the price of DOGE as something alarming to its future price, this may only suggest that you should buy even more DOGE. If you do not invest in DOGE as its price has dropped a little, you may miss out on huge price increases in the future. Dogecoin has managed to overcome a lot of challenges in the past when it came to price depreciation or unprecedented situations such as Jackson Palmer leaving the team. It is safe to say that Dogecoin might be worth buying in 2021 as well.
Can DOGE price increase?
Yes, the price of DOGE can increase in the future. Even though Dogecoin has inflationary features because of the unlimited supply, the demand for DOGE is likely to increase as it is beginning to be implemented in various countries and companies worldwide. Moreover, whale investors such as Elon Musk are huge supporters of this community-based cryptocurrency.