The latest price increase is likely to be short-lived.
The cryptocurrency market is back in investors' good graces. And some of the most speculative tokens are seeing huge gains.
Dogecoin (DOGE 2.30%), for example, is up 100% this year (as of April 5). Could this be the start of a massive bull run that sees the dog-inspired crypto eventually reach the coveted $1 mark?
Riding the hype wave
Investors are rushing in to buy Dogecoin, demonstrating once again how major hype cycles can push up the price in no time. There might be a potential catalyst on the horizon this time, though.
There are rumors that advertisers could use DOGE to pay for ads on X, previously known as Twitter. I applaud the possibility of Dogecoin being used as a payment mechanism, mainly because it can drive greater actual utility of the digital asset, but I'm not sure how many users would really do this. In the past, we've seen Tesla allow merchandise purchases to be made with DOGE. Even the Dallas Mavericks allow ticket and merchandise sales to be completed with Dogecoin.
However, I view this as simply a marketing tactic for companies to boost interest in their own products by riding the typically short-term burst of Dogecoin's price. It doesn't really move the needle from a fundamental perspective.
Like the vast majority of cryptocurrencies, Dogecoin has proven to be a method for financial speculation. Perhaps the recent price run-up is also partly driven by the anticipation of futures products for Dogecoin being launched on Coinbase, a popular crypto brokerage and exchange operator. In theory, this could add more liquidity because it would make it easier for individuals and institutions to bet on Dogecoin's price movements.
A cryptocurrency to avoid
Looking at Dogecoin's history, it's clear that this token has been characterized by nothing more than periods of exuberance and pessimism. Therefore, only people who believe that they can correctly time the market and predict when upswings will occur should look at Dogecoin. To be clear, this isn't investing; this is trading. And there are very few people that can do this successfully, so it's best to avoid this activity altogether.
With that being said, the only reason most people should even consider buying Dogecoin is if they believe that 10 years from now, it will gain much broader adoption and utility. I'm not so optimistic about this outcome.
If a certain blockchain network has a strong developer community working to advance it, then it raises the chances of long-term success. New upgrades and features could be introduced over time. According to a report by Electric Capital, Dogecoin had 19 active developers working on it in December 2023, ranking 90th out of the top 100 blockchains. This doesn't bode well for its future.
Losing interest
Dogecoin's all-time high was set in May 2021, when it reached nearly $0.74 per token. This was during a phenomenal bull market for the cryptocurrency industry. The stock market was also rising rapidly at the same time.
The overall crypto market is approaching its all-time high again, but Dogecoin remains 76% off its peak price. Its price rose by just 32% in 2023, when the industry roughly tripled in value. I think it is a clear sign that the market is losing interest in Dogecoin, despite its most recent run.
Let's just assume that Dogecoin can reach $1 per token one day. Hitting that target means its price would soar 460% from today's level. Given its current outstanding token supply of 144 billion, this also implies a theoretical market cap of $144 billion.
While Dogecoin's strongest bulls want this outcome to happen, it's hard to believe that an otherwise worthless digital asset could reach such an astronomical valuation. Investors should stay away from Dogecoin. Hitting the $1 mark is probably never going to happen. There's also a high probability the price will eventually go to zero.
Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Coinbase Global and Tesla. The Motley Fool has a disclosure policy.
FAQs
While Dogecoin's strongest bulls want this outcome to happen, it's hard to believe that an otherwise worthless digital asset could reach such an astronomical valuation. Investors should stay away from Dogecoin. Hitting the $1 mark is probably never going to happen.
Is it possible for DOGE to hit $1? ›
For Dogecoin's price to skyrocket, demand would need to outpace rising supply. That's a tall task. In my view, then, there are no fundamental reasons to be long-term bullish about Dogecoin. In fact, it's very unlikely the token will rise 600% to reach $1 by 2030.
Could Dogecoin skyrocket? ›
Dogecoin is currently 73% down from its previous all-time high. If this pattern were to repeat, Dogecoin price would reach a new all-time high in April 2025. However, technical analysis is difficult to apply to memecoins as their value is speculative.
Will Dogecoin make millionaires? ›
Holding 10,000 Dogecoin Could Make You A Millionaire, Predicts Crypto Analyst. Since 2021, Dogecoin (DOGE) has consistently been one of the largest cryptocurrencies in the market. The token has attracted tens of billions in investment and is up more than 27,000% since its launch.
What is the highest price Dogecoin can reach? ›
There are analysts who believe that Dogecoin has massive long-term potential for growth and adoption. CoinMarketCap analysts expect Dogecoin to remain a major player in the cryptocurrency market for years to come and foresee that its price could reach up to $4,423 by 2050.
Can Dogecoin reach $10 dollars? ›
During that period, Dogecoin's price surged by a staggering 28,770%. Martinez's analysis indicates that a potential breakout from the descending triangle pattern could catalyze another bull run for DOGE. Based on the chart shared by Martinez, he suggests that DOGE could potentially approach the $10 mark at some point.
Which coin will reach $1 in 2024? ›
While there are many promising options in the crypto world for 2024, one stands out as a potential game-changer: $PIKA. In the era of GameFi, where billion-dollar tokens reign supreme and GameFi projects are locking in billions, $PIKA emerges as a frontrunner.
What is Dogecoin predicted to be high? ›
CoinMarketCap predicts that Dogecoin might rise in 2025, with the highest price around $0.2053 and the lowest around $0.1819. CoinJournal predicts that the price in 2025 will reach $1.18.
Which crypto will explode in 2024? ›
Dogeverse (DOGEVERSE) – A multi-chain Doge token expected to boom in 2024. Sealana ($SEAL) – Meme token with an engaging story and a fixed presale price. WienerAI (WAI) – A prime meme coin contender for explosive growth in 2024.
Why is Dogecoin not a good investment? ›
The meme coin still lacks fundamentals and has little utility beyond pure speculation. With its unlimited supply, Dogecoin will struggle to maintain value in the long term.
Bitcoin has made many millionaires already, and you could be one, too. Over the course of its 15-year history, Bitcoin (CRYPTO: BTC) has made plenty of millionaires.
Does Amazon accept Dogecoin? ›
Does amazon accept dogecoin? While you can't make a direct purchase with Dogecoin on Amazon, you can turn your existing currency into a gift card. Amazon does accept gift cards, and through Coinsbee, you can pay for these digital cards with Dogecoin. This is the fastest workaround for buying things with crypto.
What happens if DOGE gets to $1? ›
If DOGE hits a price of $1, it would translate to a growth of over 1000%. To have one million dollars worth of DOGE at $1, you would need 1 million tokens. The price of 1 million tokens right now is about $95,000.
Can DOGE reach $100 dollars? ›
There's a high probability that Dogecoin will reach $1 per coin. $10 per Dogecoin is also likely within this decade. However, it's impossible that Dogecoin will ever get to $100 per coin. Unlike other cryptocurrencies, Dogecoin doesn't have a cap.
Will Dogecoin reach $5? ›
Market watcher and crypto trader CryptoPatel has given an extremely bullish prediction for Dogecoin, saying it could reach as high as $5. According to the prediction, current patterns in DOGE are signaling a potential 6,000% surge from its current price, something we have never seen from the leading dog-coin.
Will DOGE touch $100? ›
Moreover, the analyst suggests that Dogecoin could potentially peak around October 2024, with other cryptocurrencies following suit. If the value of the U.S. dollar plummets, this could fuel even greater growth for Dogecoin, potentially driving its price above $100.
Can DOGE reach $20? ›
Dogecoin Future Predictions: Analysts predict Dogecoin could hit $0.9 in 2024, $3+ in 2026, and potentially $1.35 by 2025, with long-term forecasts ranging up to $19.4 by 2050 under favourable conditions.
Can shiba reach 1 cent? ›
It would be extremely difficult for Shiba Inu to reach 1 cent. Even during SHIB's all-time high in October 2021, when the token was trading at $0.0000881, SHIB would have needed to increase in price by 113x to hit $0.01.
