Dogecoin belongs to that category of altcoins that are called “meme coins.” When it was launched in 2013, it was perceived just like it was supposed to be: a meme, a joke, and nothing serious. Meme coins have evolved into their own distinct category in the cryptocurrency world, sometimes being even more profitable for investors (usually in the short term) than projects with ideas or real-world applications. In the meantime, Dogecoin continues to rank among the top 10 cryptocurrencies by market capitalization. So, let’s find out how the dog became so popular and what its investment prospects are!
What is Dogecoin?
Dogecoin (DOGE) is a decentralized, open-source cryptocurrency that was created as a lighthearted alternative to traditional cryptocurrencies like Bitcoin by Adobe software engineer Jackson Palmer and IBM software engineer Billy Markus
Palmer was an early supporter of crypto and a blockchain enthusiast. He witnessed how more and more investors were talking about Bitcoin, and so he decided to find a way to make fun of the hype surrounding the then–emerging technology.
On December 6th, 2013, Palmer and Markus officially launched their own digital currency as a parody of the Doge meme they had seen on social media. Using Dogecoin, they intended to demonstrate the absurdity of risking large sums of money on unstable ventures.
In contrast to Bitcoin, which was designed to be scarce, Dogecoin was made intentionally abundant, has 10,000 new coins mined every minute, and has no maximum supply.
Dogecoin utilizes a proof-of-work consensus mechanism since it was originally forked from Litecoin and then refactored to Bitcoin. Dogecoin’s target block time is 1 minute, as opposed to Litecoin’s 2.5 minutes and Bitcoin’s 10 minutes.
Dogecoin was the very first meme coin in the crypto space. So before we move on, let’s try to understand what a meme coin is.
Meme coins are a type of altcoin that is primarily driven by the community and/or hype and not much else. Meme coins pop up on the crypto market by the dozens every single day, most commonly have zero functionality, and do not have anything to offer to serious investors. The majority of them perish on the same day they were born. Even those who manage to survive their 15 minutes of fame and continue to exist are usually driven solely by their community and the hype.
For the majority of its existence, Dogecoin was also simply perceived as a funny “memecoin,” beloved by its relatively small community, with zero attention from serious investors and thus a relatively low value. However, that situation drastically changed in 2021, when Dogecoin became one of the ten biggest cryptocurrencies by market cap. So how did that happen?
How did Dogecoin become so popular?
Dogecoin broke into top 10 cryptocurrencies by market cap in May 2021, and the history of its climb is quite fascinating.
It all started on January 28th, when Dogecoin went up over 800% in 24 hours, attaining a price of $0.07, due to a price pump from Reddit group called “SatoshiStreetBets” that decided to make it the crypto equivalent of GameStop – an American video game retailer that experienced a short squeeze of the stock due to actions of another Reddit group just a few days before Dogecoin’s rally.
The hype didn’t die out, and in February Dogecoin hit a new high price of $0.08 following Twitter encouragement from Elon Musk.
In March 2021, owner Mark Cuban of the Dallas Mavericks announced that Dogecoin would be accepted for purchasing merchandise and tickets. Within two days, Cuban declared his team to be the top Dogecoin merchant, having completed 20,000 transactions.
On April 14, Coinbase announced that they’ve decided to list Dogecoin on their exchange, and that decision led to Dogecoin’s price first reaching $0.10 and then hitting an all time high of $0.45 on April 16, which was equal to a 400% surge.
On May 4, 2021, the value of Dogecoin managed to surpass the symbolic price level of $0.50, which in general was equal to a 20,000% increase in one year.
Elon Musk is one of the main reasons why Dogecoin got so much attention and why it was able to skyrocket. His tweets about the crypto space and certain cryptocurrencies have become memes in themselves. Celebrities have always had the ability to manipulate and mobilize their fan bases, but Elon Musk took this ability to a whole new level. His tweets about crypto, and especially Dogecoin, made a strong impact on the price.
Dogecoin DOGE price forecast 2023-2025
At the time of this writing (01.03.23), DOGE’s price is equal to $0.0818 per coin.
According to the Coin Price Forecast, the price of DOGE will be $0.1016 by the mid 2023 and by the second half of the year, we might witness it losing its position and drop down to $0.0910 per coin.
By the mid 2024, DOGE is expected to grow back and cost $0.1183, however, by the end of 2024, it can lose its price again to $0.1071.
By the mid 2025, DOGE will grow in price and thus DOGE may cost $0.1126 and $0.1232 by the end of 2025.
Wallet Investor, in their turn, are less bullish on DOGE’s future price. The average price of DOGE is expected to be $0.0750 by the mid 2023. After that it is expected that DOGE will slowly lose its position, and by the end of the year it is expected to cost $0.0127 per coin.
Wallet Investor’s experts believe that in 2024, DOGE will continue to lose its strength and by mid 2024 it is expected that its average price will be $0.0045 per token, and continue to fluctuate throughout the year. By the end of 2024, DOGE might grow up a bit and cost around $0.0050.
The first half of 2025 will not be different from the whole year of 2024, and by the mid year, DOGE might cost around $0.0043 per token. Further in the year, DOGE will experience some minor ups and downs, and by the end of 2025 it will strengthen its position up to $0.0040 per coin.
Digital Coin Price is much more optimistic regarding DOGE’s future price than Wallet Investor. In 2023, DOGE’s average price might hit the $0.15 level.
The next year DOGE’s price might gain more value and its average price is expected to be at the level of $0.19. In 2025, we might witness DOGE strengthen its position and its price might reach $0.28 per coin.
According to the forecast provided by the Economy Forecast Agency (EFA), Dogecoin’s DOGE is expected to face a long-term bear trend since the forecast is not that optimistic. EFA anticipates that the price of DOGE will be $0.051 per coin by the mid 2023.
Throughout 2023, the price is expected to fluctuate and by the end of the year we might witness its price to be $0.046.
In 2024, the situation might even worsen for DOGE: the price is expected to reach $0.020 per coin by the mid 2024 and $0.017 by the end of the year.
DOGE is expected to start 2025 with a price of $0.014, grow back up to $0.026 by mid year, and by the end of 2025, we might see DOGE go up to the $0.033 level.
Dogecoin DOGE price forecast 2030
As always, it is hard to make such a long-term prediction, especially when we are talking about crypto. Nevertheless, some of the experts go that far and still try to predict the DOGE price for such a long term.
For instance, Coin Price Forecasts predicts DOGE’s price to be $0.1860 by mid 2030 and $0.1965 by the end of the year.
According to the forecast from Digital Coin Price, Dogecoin DOGE’s by the beginning of 2030 will cost $0.82 per coin.
The forecast provided by Tech News Leader is perhaps the most bullish one. The year 2030 can end with an average price of $1.64 with a minimum price of $1.60 and the maximum price of $1.90.
The forecast from Price Prediction is also bullish regarding Dogecoin’s future price. According to them, the Dogecoin price can reach a maximum level of $1.72 with the average price of $1.44 throughout 2030.
Final thoughts
Back in 2013, Bill Marcus and Jackson Palmer managed to combine two popular themes in online circles: the interest in Bitcoin and a meme featuring a Shiba Inu dog. Even despite the fact that it was started as a joke, Dogecoin performed a true miracle and proved that anything is possible in the crypto space.
Dogecoin has come a long way from being a worthless meme coin to being one of the top 10 cryptocurrencies by market capitalization, and with constant support from its community, celebrities, and Elon Musk on board, it looks like Dogecoin’s future is bright.
Moreover, Dogecoin is one of the oldest altcoins in the crypto market, and if you are looking to diversify your portfolio, DOGE might be the one cryptocurrency worth looking at.
FAQ
What is Dogecoin?
Dogecoin (DOGE) is a decentralized, open-source cryptocurrency that was created as a lighthearted alternative to traditional cryptocurrencies like Bitcoin by Adobe software engineer Jackson Palmer and IBM software engineer Billy Markus
Can Dogecoin reach $1?
According to the forecast from Price Prediction, the Dogecoin price can reach a maximum level of $1.72 with the average price of $1.44 throughout 2030.