Dogecoin (DOGE) Price Prediction: Will DOGE Coin Reach $1?

Dogecoin (DOGE) was founded in 2013 by two friends who thought the cryptocurrency industry was taking itself too seriously.

Dogecoin (CRYPTO: DOGE) was founded in 2013 by two friends who were thinking the cryptocurrency trade was taking itself too severely. Impressed by the “Doge” meme that was spreading throughout the net on the time, they launched Dogecoin as a joke (in their personal phrases).

Little did they know it would turn into one particular of the most-valuable cryptocurrencies on Earth in 2021, clocking in at a peak valuation of around $90 billion. But it spiraled from there and misplaced extra than 90% of its worth by mid-2022. Sadly, Dogecoin has nearly no actual-world utility, and speculative sprees by no means final. So it merely couldn’t sustain its momentum.

But after spending all of 2023 and most of 2024 licking its wounds, Dogecoin discovered its footing once again when Donald Trump gained the latest presidential election in November, after campaigning on a collection of pro-crypto insurance policies. Furthermore, his marketing campaign was boosted by Elon Musk, a longtime supporter of Dogecoin.

In truth, the meme token finished 2024 with a gain of 251%, beating other prime cryptocurrencies like Bitcoin, Ethereum, and XRP:

Dogecoin Price information by YCharts

Dogecoin’s latest rally appears to have stalled for now, and its present-day value of $0.17 per token remains seventy six% under its 2021 peak. But with a crypto-friendly administration now in the White Home, may very well be this the ultimate time to purchase Dogecoin earlier than it's thinking soars to $1?

The Musk-Trump impact

On the marketing campaign path, President Trump pledged to make America the crypto capital of the world. Since taking workplace, he has signed an government order to establish a strategic Bitcoin reserve within the authorities, in addition to a digital asset stockpile that may eventually maintain cryptocurrencies other than Bitcoin.

Plus, the performing head of the Securities and Trade Fee, who Trump appointed, has already begun pausing the company’s lively lawsuits in opposition to crypto giants like Binance and Coinbase. This is a step towards creating a a lot friendlier regulatory setting for the crypto trade, arming it with the freedom to presumably create new use instances to drive value for traders.

But Dogecoin traders obtained their very personal special shock when President Trump established an exterior company to assist decrease wasteful spending within the authorities, and appointed Elon Musk to run it. It’s known as the Ministry of Authorities Effectivity, or DOGE for brief, which is a wink at the cryptocurrency Musk as soon as known as his favourite: Dogecoin.

Musk has promoted Dogecoin usually since 2019 by sharing memes and interacting with different enthusiasts on social media. He even participated in a Dogecoin-themed skit on Saturday Night Live on May 8, 2021, which occurred to mark the token’s peak value of $0.73. Merely put, traders realised Musk didn’t have any concrete plans to assist his banter, so they rushed for the exit — driving the 90% decline by way of 2022 that I talked about earlier.

Last 12 months's rally in Dogecoin appears to be pushed by the concept Musk's involvement in DOGE may create value for the meme token, but there has been no indication it will have any utility within the company in any respect.

Dogecoin's elementary points haven't vanished

Dogecoin has two core problems: a lack of adoption, and practically limitless provide. In accordance with Cryptwerk, simply 2,061 companies around the world are keen to settle for the token as cost for items and providers, and lots of of them are obscure suppliers of web and crypto providers, and even on-line playing web sites.

If customers can't spend Dogecoin at their favourite shops, then they've no purpose to personal it. With out that adoption, the token will swing in value purely at the whims of speculative traders, making it nearly not possible to sustain upward momentum over the lengthy time period.

On the provides entrance, there are 148.5 billion Dogecoin tokens in circulation. That determine will develop in perpetuity — whereas there's a cap on how many new tokens may be "mined" every year, there's no finish date, so provide is definitely uncapped in actuality. Since traders are steadily diluted as extra time passes, it turns into extraordinarily troublesome for Dogecoin to keep up value. In any case, I can't assume of an asset with an infinite provide that generates regular returns.

Even Bitcoin has a capped provide of 21 million coins, and that scarcity is a key reason traders contemplate it a legitimate retailer of value.

This may very well be 2022 all over again

Dogecoin's latest rally fizzled out in December at $0