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Dogecoin (DOGE) is one of the oldest meme coins in the market. DOGE was created in 2013 to critique the high number of new cryptocurrencies entering the market. However, it developed a strong community that has seen it survive over the years as one of the largest cryptos by market capitalization.
However, Dogecoin went truly mainstream in 2020 after Elon Musk started hyping it up via Twitter. This hype triggered a Dogecoin rally that saw it gain by over 10,000% in the 2020/21 bull cycle.
Let's now look at Dogecoin's prospects and predict if it is still a buy now.
Meme coins have gained in popularity since 2020 after Elon Musk started hyping up Dogecoin. Since then, many meme coins have come up, and investors expect 100 to 1000x gains from them.
In such an increasingly saturated market, the big players are likely to be the ones that survive and thrive. This easily makes Dogecoin one of the cryptocurrencies likely to benefit the most as meme coins gain traction.
Since hype is part of the factors that drive up cryptocurrency prices, Dogecoin could benefit from a cryptocurrency bull rally in 2023. Many new investors view meme coins as a pathway to wealth, and Dogecoin has an advantage as the king of meme coins.
Elon Musk has become one of the most important figures in crypto. Even Bitcoin seems to respond to what he says, as was evident in its price drop in May 2021 when he questioned its energy efficiency.
However, the power of Elon Musk in the crypto market has most been felt by Dogecoin. The hype saw it outperform most cryptocurrencies in 2021 and rally by over 12,000%.
Elon continues to be heavily involved with Dogecoin. In 2021, he nicknamed himself the Dogecoin Father and even reignited developer interest in Dogecoin. However, his biggest sign that he supports Dogecoin was the move to make some of Tesla's merchandise purchasable in Dogecoin.
He has also been pushing other companies, especially McDonald's, to accept Dogecoin payments. As more companies hid his call and started accepting Dogecoin for payments, the price could rally, especially if the broader market turns bullish again.
Cryptocurrencies with large and active communities tend to be safer bets than those with small communities. That's because the cryptocurrency market is pretty crowded, with over 6000 cryptos and new ones coming up daily. In essence, the more visible it is, the higher the odds of drawing in new investors and driving up the price.
Dogecoin happens to have one of the largest communities in crypto. The Dogecoin community on Reddit has more than 2 million subscribers, and they are active. This makes Dogecoin one of the most visible cryptocurrencies to new investors, a factor that could help drive up the price, not just in 2023 but for many years to come.
Dogecoin is listed on most of the major exchanges, including Binance and eToro. This makes it pretty visible, especially to new investors. This is a big deal because it means Dogecoin volumes are always high regardless of the market's direction at any given time. This is also advantageous because it is easy for new investors to buy DOGE in bull markets. This could add to the FOMO as bulls regain control of the market in 2023 and future bull cycles.
Meme coins usually tend to be heavily centralized, with teams of backers pumping prices. The downside of this is that many scams in the market are taking advantage of naive investors looking to get rich quickly out of meme coins.
Dogecoin is one of the meme coins that have an element of security. Dogecoin's security stems from its decentralization. It runs on a Proof-of-Work algorithm and is easy to mine even with a PC. This means that no single person or entity controls the Dogecoin network. This factor can lead to an increase in Dogecoin adoption and its price, not just in 2023 but for years to come.
So, Is Dogecoin A Good Investment?
Dogecoin certainly has a lot of pros that many other cryptocurrencies do not have. The fact that it is faster than both Litecoin and Bitcoin and is getting adopted as such, means that there is a lot of room for growth in Dogecoin and that usually translates very well to the price of DOGE making it a good coin to invest in.
Being adopted by a brand like CovCare is a huge announcement to how far the meme-inspired currency has come. This is because CovCare in February 2021 surpassed 100,000 placed orders.
As the second phase of the pandemic rages on with social distancing protocols at its core, several individuals may have to jump at the opportunity of using the cryptocurrency to purchase personal protective equipment (PPE).
CovCare views the adoption of DOGE from a strategic standpoint. According to the medical supply company "This is a chance to apply radical changes to how the healthcare industry operates".
As a result of the number of people who need PPEs coupled with the buzz around the coin, there is going to be a huge spike in the number of people using DOGE to pay for supplies and help protect thousands of citizens from contracting the virus.
Additionally, dogecoin is accepted by over 1000 companies across industries such as crypto, business, gambling, internet and hospitality.
Popular among these companies are global leader for cryptocurrency payment processing (Coin Payments), clothing and fashion company (Park and Finch), communications company (ScrybaSms), online games platform (Playhub Casino), trading and investment services company (Quantum Investment Limited) and online security network (WPSec).
Others include travel, leisure and hospitality websites (Trippki, Greitai, Clube Turismo) and sportswear uniform and accessory companies (Xtreme Spirit & Partner Brands).
This comes with a high usage rate of the coin and this takes into effect the laws of demand and supply. The more demand for a product to be used as an option of payment, the higher the price of that particular asset, and in this case, DOGE.
Dogecoin is a fun cryptocurrency that has made its way into decentralized finance through its stablecoin ($DOGEO) on Ethereum, sports (partnership with Dallas Mavericks) and has been adopted as one of the options for one of the leading companies in terms of medical supplies (CovCare).
It is worth investing in DOGE because it is cheap and will thrive on its usage as well as its fans to move its value in the long term.
According to CoinPedia, the Dogecoin price will compete with other peer cryptocurrencies in 2022. Analysts at CoinPedia believe that "The DOGE coin may even go up in terms of ranking and hit the highest level at $1 by the end of 2023".
The DOGE digital asset may begin 2022 with a trading price of $0.17 and if it manages to attract the attention of marketers and it's adopted by more well-established institutions, could reach up to $1. With support from all the major influencers, Dogecoin may hit $0.50 by the end of that year.
With certain developments and collaborations such as Ren and Open DAO in decentralized finance projects, CoinPedia feels DOGE may reach $4.123 and a high of $7.833. Facing several market turbulences and resistance, the coin may end 2025 with a trading price of $5.497.
One of the eminent bloggers on Steemit, Zakaria M., has opined through his blogs that dogecoin will be worth the price of range of $1 to $10 in 5 years time.
Dogecoin may reach $15 with major integrations and partnerships and has a great potential of outperforming other cryptocurrencies in the market by 2030, is the prediction of Coin Switch.
Even after rising by over 12,000% in 2021, Dogecoin is not expensive. It has the full backing of Elon Musk, a factor that has helped drive up the price in the past. At the same time, Dogecoin has one of the largest communities of all meme coins, a factor that can help drive FOMO in the next Bull Run. Simply put, Dogecoin is a cryptocurrency to buy right now.
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Disclaimer: Analytics Insight does not provide financial advice or guidance. Also note that the cryptocurrencies mentioned/listed on the website could potentially be scams, i.e. designed to induce you to invest financial resources that may be lost forever and not be recoverable once investments are made. You are responsible for conducting your own research (DYOR) before making any investments. Read more here.
