$Doge's Institutionalization and Future Opportunities

It has always been regarded by the market as the leader of meme coins. At the end of 2024, its price soared due to the Trump and Musk effect

Author: b12ny

It has always been regarded by the market as the leader of meme coins. At the end of 2024, its price soared due to the Trump and Musk effect during the US election, but then entered a sharp correction and the decline once exceeded 60%. This is consistent with the overall decline of the meme coin sector, indicating that its short-term momentum is dominated by market sentiment.

In terms of institutional layout, Grayscale launched the Dogecoin Trust Fund (management fee of 2.5%) in January 2025. The trust is limited to qualified investors. Although the scale is still small (nearly US$2 million AUM), its significance goes beyond the number itself. It represents that $Doge has officially entered the range of institutional investable assets. It is also regarded as a key step in Dogecoin's transformation from meme-oriented to institutional investment.

The ETF is promoted by Bitwise, and if the $Doge ETF application submitted to the SEC is approved, it may further expand its market liquidity. However, there are no approved cases yet, and future development still needs to observe changes in the regulatory environment.

$Doge has the potential for short-term speculative value and long-term application scenarios, and its price has been highly correlated with Musk in the long run. X is actively exploring the integration of the payment system. If $Doge is included in the X payment system, this will be the biggest market catalyst since 2021.

The future development direction will depend on three key variables: payment applications, institutional investment and chip movements.

Currently, $Doge is still a speculative asset driven by the community. If X or Tesla expands its payment application, it may bring new market demand. In addition, the progress of ETF applications and regulatory policies will also affect the inflow of institutional funds and further change the market structure of DOGE. This article will evaluate the current positioning and future potential opportunities of $Doge through historical review, narrative economics and in-depth analysis of chip structure.

Historical Overview

$Doge was created in 2013 by Billy Markus and Jackson Palmer to satirize the bubble in the cryptocurrency market, but it unexpectedly developed into the world's largest meme coin by market value. The historical development of $Doge can be divided into several major stages:

2013 - 2017: Community Driven and Charitable Culture

2018 - 2020: Low liquidity and market marginalization

2021-2022: Elon Musk and the memecoin wave

2023 - 2025: Institutional capital entry and payment process

Narrative Economy

The market value of $Doge is mainly driven by narratives. These narratives determine the future development and liquidity sources of $Doge, and also affect the capital rotation patterns of institutions and retail investors. The following are the narratives that currently affect the market:

Memecoin faucet and POW mechanism

Since the birth of $Doge, it was mainly promoted by the Reddit community to become an online reward function. Since the last round of bull market, it has become the leader of the meme coin with the largest market value because of Musk. Although it is mainly affected by the overall market trend, it has long been correlated with other meme coins and catalyzed the birth of other meme coins.

For example, $Shib and $Floki were born in 2021, and $Babydoge was the most popular at the time. It is worth mentioning that compared with other compatible/existing "meme tokens" on the public chain, $Doge is the POW "meme coin" with the largest market value (second only to $BTC), and the third is $LTC.

In the last round, we often heard the phrase "Bitcoin gold, Litecoin silver, Doge copper" because their technical architectures are all POW and their codes are similar. The biggest difference between $Doge and them comes from the inflation mechanism, with a fixed increase of 5 billion pieces per year. The other two have a maximum supply cap. The table below compares the information and mechanisms of the three:

In early 2014, when the computing power of $Ltc was as high as 600GH/s, $Doge was less than 40GH/s, which resulted in a low cost of network attack on DOGE. It was attacked by mining pools and Dogecoin Wallet was hacked, and the price quickly collapsed by 95.26%. In order to enhance security, LTC founder Charles Lee suggested that the $Doge community conduct joint mining (AuxPoW) with $Ltc. This suggestion caused heated debate, and finally the community chose to bind with $Ltc.

Through shared computing power, the computing power of $Doge's entire network continues to grow, which increases the cost of hackers attacking DOGE and ensures the security of the chain. In addition, the