Key Takeaways
- Throughout 2024, the price of Dogecoin increased by 250%, which outperformed many other popular cryptocurrencies, including XRP, Bitcoin, and Ethereum.
- If Dogecoin can achieve similar growth in 2024, it will be possible to reach $1 in 2025.
- This broader market strength has positively impacted Dogecoin, as investors look for high-potential assets during bullish cycles.
- Dogecoin's lack of intrinsic value and utility makes it a high-risk investment.
Introduction
Dogecoin is up 250% in 2024, outperforming Bitcoin and Ethereum. Driven by optimistic expectations of a loosening of the regulatory environment for cryptocurrencies, Dogecoin appears to have high return potential. So, will Dogecoin reach $1?
I have extensive experience in cryptocurrency research and trading. Dogecoin is one of several cryptocurrencies that I have been following for the past few years, and I have been researching and thinking about the future investment potential of Dogecoin. In this article, I will evaluate the investment potential of Dogecoin and try to tell you whether you should buy Dogecoin.
Who Made Dogecoin?
Dogecoin was created by Billy Markus and Jackson Palmer in late 2013. Billy and Jackson thought that cryptocurrencies lacked fun, so they created Dogecoin based on the famous Doge meme.
After the launch of Dogecoin, it immediately attracted widespread attention and popularity. Two weeks after its launch, Dogecoin's daily trading volume surprisingly exceeded Bitcoin. Within the first month after its launch, the Dogecoin website had more than one million unique visitors.
Because Dogecoin is more fun than other cryptocurrencies, it has gained huge popularity on sites such as Reddit. On Reddit, people use Dogecoin as a tipping currency to reward their favorite creators and developers. Dogecoin can now also be traded against fiat currencies and other cryptocurrencies on major cryptocurrency exchanges such as Binance and retail investment platforms such as Robinhood and eToro.
Dogecoin is now the seventh largest cryptocurrency in the world by market capitalization and the number one meme cryptocurrency. This shows that traders and institutions are still interested in Dogecoin.
Dogecoin's price action
For most of the time since its launch, Dogecoin has been priced below $0.1, which is too cheap compared to other cryptos. However, in 2021, Dogecoin's price suddenly rose sharply, reaching a peak of nearly $0.70.
The surge of Dogecoin was due to the remarks of billionaire Elon Musk. At that time, Musk mentioned Dogecoin many times on X (Twitter) and called it "the people's crypto", which led to a frenzy of hype. Later, the subsequent decline of Dogecoin was also related to Musk's remarks. He publicly stated that Dogecoin is a "scam."
In 2022, a bear market in cryptocurrencies due to rising interest rates and economic uncertainty caused Dogecoin prices to fall sharply. In 2023, and for most of 2024, although the price of Dogecoin fluctuated several times, it was basically below $0.2.
Will Dogecoin reach $1?
In November 2024, Dogecoin had a big spike, rising 170% in a single month (from $0.16 to $0.43), hitting a more than two-year high. Dogecoin’s rise is mainly due to optimistic expectations of a cryptocurrency-friendly regulatory environment under Donald Trump’s administration.
Throughout 2024, the price of Dogecoin increased by 250%, which outperformed many other popular cryptocurrencies, including XRP (235%), Bitcoin (120%), and Ethereum (47%).
Since Dogecoin did so well in 2024, is it possible that it could reach $1 by 2025?
According to Coingecko, there are about 147 billion dogecoins in circulation as of January 2024, with a market value of about $54 billion. Assuming the current supply is kept constant, if Dogecoin is to reach $1, its market cap must climb to about $147 billion, or a 172% increase from $54 billion.
Given that the price of Dogecoin increased by about 250% in 2024, achieving 172% growth in 2025 doesn't look too difficult. Of course, increased supply will make it harder to achieve. Although difficult, if Dogecoin can achieve similar growth in 2024, it will be possible to reach $1 in 2025.
If you want to know the price forecast for Dogecoin from 2025 to 2030, click here for more details.
Will Dogecoin keep going up?
As the impact of the pro-cryptocurrency Trump administration's victory gradually faded, the price of Dogecoin has been consolidating between $0.3 and $0.4 in recent times. The rise in the price of dogecoin also needs more good news to stimulate it.
Here are a few factors that could cause market sentiment for Dogecoin to turn bullish.
Adoption
The fast transaction speed and low cost compared to Bitcoin or Ethereum make Dogecoin suitable for small transactions. Now, Dogecoin is often circulated as tip currency on social media platforms like Reddit and Twitter. Some online retailers and platforms, such as Robinhood, also accept Dogecoin as a payment method for their services.
If more companies incorporate Dogecoin into their payment systems in 2025, Dogecoin's integration with potential payment systems, such as Elon Musk's X platform, will push its price up.
Speculative interest
Due to the nature of the meme coin and Musk's celebrity status, Dogecoin has been one of the favorite cryptocurrencies among speculative investors.
If there is evidence of increased interest from large holders of Dogecoin, known as "whales," it could push up the price of Dogecoin in the short term.
Broader Market Trends
If there is a general bullish sentiment across the crypto market and attracts more investors to join, that will have a positive impact on Dogecoin. Because investors like to look for high-potential assets during bullish cycles, Dogecoin's low price and high growth track record make it an attractive option.
Regulatory positivity is an important factor driving bullish sentiment in the crypto market. If the Trump administration sends a clear signal that they will ease regulatory pressure on cryptocurrencies in the next few years of their term, then all cryptocurrencies could see significant growth.
Should I buy Dogecoin?
As of the end of 2024, Dogecoin is trading at around 0.31, well below its all-time high. This makes it look like an investment option with high return potential. But before you choose to buy Dogecoin, you also need to understand its risks.
Until today, Dogecoin still lacks significant utility. According to Cryptwerk, only about 2,500 companies around the world are willing to accept Dogecoin, most of which are unknown Internet service providers.
Unlike Bitcoin, which has a mining cap, Dogecoin's supply is unlimited, so Dogecoin lacks storage value. At the same time, Dogecoin is also an inflationary cryptocurrency because its supply will increase at a rate of about 5 billion coins per year.
Intellectia believes that Dogecoin may see a short-term price increase driven by a rising speculative interest or an overall market rebound. However, low adoption and inflation make it a high-risk investment. Intellectia recommends that if you choose to invest in Dogecoin, you can reduce the overall risk by adding some lower-risk assets to your portfolio.
Intellectia also provides technical analysis of Dogecoin based on real-time data. Please click here to view.
Conclusion
As a fun meme coin, Dogecoin has seen phenomenal growth in 2024. If Dogecoin continues to grow at the same rate in 2025, then reaching $1 is possible. But we should also learn from the big swings in 2021 that Dogecoin can become worthless in a short period when speculative interest wanes.
Overall, Dogecoin remains an attractive option for those who seek high returns and can tolerate high risk. But I suggest you use some AI tools like Intellectia to monitor changes in Dogecoin in real time and make smart investment decisions.
Frequently Asked Questions
What is Dogecoin used for？
Dogecoin is mainly used as tip currency on some social media platforms such as Reddit and X. Many users use Dogecoin to reward creators and developers who write good stuff on these sites. In addition, several businesses (mostly online service providers) also accept Dogecoin.
How many Dogecoin does Elon Musk have?
Elon Musk has not disclosed how many Dogecoins he owns. But there are rumors that Musk is the mysterious Dogecoin "Whale" who owns more than 36 billion Dogecoins, roughly a quarter of the total Dogecoins in circulation.
Where can you buy Dogecoin?
Dogecoin can be bought and sold on major cryptocurrency exchanges around the world. Among them, the exchanges with large volumes of dogecoin include Binance, OKX, and Coinbase Exchange.
