Dogecoin was one of the crypto success stories of 2020-21, seeing unprecedented price growth in the first few weeks of the year and finding it back amongst the top ten biggest cryptocurrencies by market cap - seemingly against all expectations.
Most of its success came as a result of community-driven price runs combined with the occasionally timely comment from Tesla CEO Elon Musk. Together, these factors have pushed Dogecoin back into the limelight and seem to have built a certain degree of momentum that doesn’t look like it will fade away any time soon.
Everyone knows that Dogecoin was originally started as a parody of the cryptocurrency market, but is it time for investors to start taking DOGE more seriously - and does it have a future as a legitimate means for value exchange amongst so much competition?
In the following article, we’ll look at 5 Reasons Why Dogecoin Could still Double Your Money in 2023.
1. The Dogecoin Community
The Dogecoin community has shown itself to be fiercely loyal and one of the most active in the crypto space. The DOGE price runs that we saw in 2021 were largely orchestrated by the coin’s sub-Reddit and the infamous WallStreetBets discussion. Along with the Gamestop saga earlier in 2021, we saw just how influential these groups can be.
Of course, Reddit users alone are hardly likely to be capable of repeatedly boosting DOGE’s price, but the fact that the altcoin effectively has a small army of die-hard fans ready to support in any way they can means that Dogecoin has a distinct advantage over many other cryptocurrencies.
Dogecoin could arguably be considered the world’s ‘coolest’ cryptocurrency and this could prove pivotal if it becomes the digital currency of choice for the younger generation. Given that Bitcoin has effectively held the top spot despite being technically outclassed by later blockchain projects, any cultural momentum that DOGE can build up could pay dividends in the long term.
2. Elon Musk
Anyone who was observing the cryptocurrency market in 2021 saw that Elon Musk seems to wield an impressive amount of influence. When his firm Tesla acquired $1bn worth of Bitcoin, it sent the price of BTC skyrocketing. When he announced that Tesla would no longer accept the currency, it duly went into decline.
The so-called Elon Effect has also been seen with Dogecoin. Musk was actually voted as the Dogecoin CEO back in 2019 - although he seems reluctant to accept the title. However, he tweeted about Dogecoin several times in 2021 and vowed to hodl DOGE - suggesting that he believes it will increase in price over the longer term.
Musk also made his now-famous “release the Doge” comment, which saw the token’s price surge by 10% almost immediately and indicated that the Tesla billionaire isn’t quite ready to wash his hands of Dogecoin.
With Elon Musk onside, Dogecoin will no doubt continue to be relevant and if he continues to post positively about DOGE, then there’s even a chance we may see another Reddit-driven price run.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
3. Dogecoin Is Still A Viable Currency
Let’s face it, Dogecoin is hardly a smart blockchain by modern standards and is more or less limited in application to being a simple means of value exchange. However, the same can be said of several top-tier cryptocurrencies - including Bitcoin.
What’s more, Dogecoin is arguably a lot more viable as a means of payment. Modelled on the Litecoin blueprint, Dogecoin uses an Auxiliary Proof of Work (POW) consensus mechanism but relies on the Scrypt algorithm as opposed to SHA256, which makes Dogecoin much faster and less resource-intensive than Bitcoin.
Dogecoin is also an inflationary cryptocurrency, which is much more in line with fiat currency and means Dogecoin won’t become too scarce to be used as an everyday payment. The supply rate of DOGE increases in a controlled fashion and allows for enough of the token to stay in supply to support retail transactions on a commercial scale.
4. Dogecoin Has Celebrity Status
Dogecoin has often been described as the people’s cryptocurrency - including, incidentally, by Elon Musk - and the unlikely meme-themed token has established itself as one of the most fashionable cryptocurrencies of all time - which has inevitably led to a spate of celebrity support.
Snoop Dogg has commented on cryptocurrency a few times over the years and is known to have previously invested in Bitcoin, but the rapper has also expressed a fondness for Doge, having tweeted an image of his popular R&G album cover, only with his own face replaced with that of Dogecoin’s now-infamous Shiba pup.
Snoop isn’t the only rapper getting involved either - Lil’ Yachty has also tweeted about DOGE several times. Meanwhile, Kiss legend Gene Simmons has also jumped on the Doge bandwagon, announcing that he has acquired a “big position”.
Of course, it isn’t all rappers and ageing rock stars coming out in support of Dogecoin. Billionaire technology investor Mark Cuban tweeted that "If I had to choose between buying a lottery ticket and Dogecoin, I would buy Dogecoin." He has also gone on to confirm he has bought an undisclosed amount of the altcoin for his son.
5. DOGE Mania May Not Yet Be Over
Imitation is said to be the sincerest form of flattery so it bodes well for dogecoin that new token’s dubbed ‘DOGE Killers’ have emerged, seeking to recreate the original meme coin’s strong community-driven price surges.
Of course, some may see these as potential Dogecoin rivals, but the reality is they could signal a meme coin trend that would prove very lucrative for anyone holding DOGE. In fact, the likes of SHIB and LEASH could simply serve to boost Dogecoin’s profile, whilst being unlikely to pose any real challenge.
There have been other signs that Dogecoin’s popularity is anything but declining. In July 2021, RobinHood revealed that DOGE accounted for 34% of its crypto revenue for the first quarter of the year, showing an ongoing appetite for the meme coin amongst retail traders.
Read Also: Will Dogecoin Make Me Rich In 10 Years?
What Are Analysts Predicting For Dogecoin In The Coming Months?
So we have put forward five reasons why Dogecoin could be a good investment in 2023, but what do the analysts have to say?
WalletInvestor has Dogecoin going past $0.39 in April, before reaching over $0.441 by the end of 2023. If this prediction comes to pass, then anyone choosing to invest in Dogecoin today could quite literally double their money within a year.
Elsewhere, according to TradingBeasts technical analysis DOGE will grow going into 2023, reaching $0.2729.
Finally, DigitalCoinPrice predicts that DOGE will climb to $0.2333 in 2023 and approach $0.27084 before 2023 is out.
Whilst these predictions are only guesswork and cannot be guaranteed, it certainly bodes well for Dogecoin that the major analytical platforms seem to be unified in their belief that DOGE will increase by at least 50% over the next months.
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Conclusion - Is Dogecoin A Good Investment In 2023?
Nothing is guaranteed when it comes to the cryptocurrency market, but there is a lot to suggest that Dogecoin will still be a good investment in 2023. Will it actually double your money? Potentially. As we have seen, several analysts believe DOGE could be up by 100% before the end of 2023.
Whilst potential Reddit campaigns are extremely hard to predict - even once they’ve begun - it has been established that they can be a legitimate vehicle for seriously boosting the price of an asset - and the Dogecoin community has already proved this once this year.
The ongoing (apparent) support of Elon Musk should also not be dismissed. Musk is an influential figure - and not just in the world of cryptocurrency. His mainstream fame could potentially bring new investors into the space and we have already seen that his backing can push up prices within hours of him posting a tweet or making an off the cuff comment in an interview.
Of course, there is always a chance that Dogecoin’s popularity could wane, in which case prices could tumble significantly. However, with the momentum it built up in 2021, this seems unlikely. The DOGE community is now big enough to sustain the coin - to some degree - and as it continues to grab headlines then it should be able to hold its place amongst the top cryptocurrencies.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
Read More:
Pros and Cons of Investing in Dogecoin
8 Reasons Why You Should Invest In Dogecoin Today
FAQ
Is Dogecoin going to explode again in 2023?
Dogecoin experienced some serious price growth in 2021, pushing it up from the fringes and into the list of the top ten cryptocurrencies by market cap. It’s fair to say the community-driven bull came as a surprise, but there’s no reason to believe it couldn’t happen again.
Will Dogecoin double my money in 2023?
No one can say for sure what Dogecoin will be worth at the end of 2023, but suffice to say that most analysts are predicting strong growth for DOGE. The amount of growth predicted depends on who you ask, but it seems to be a popular opinion that Dogecoin will increase by 50% over the next year or so.
How do I invest in Dogecoin?
You can invest in Dogecoin via a trusted cryptocurrency exchange or broker. We usually recommend eToro, as the platform has one of the best reputations in the industry and is suitable for both experienced and novice investors.
Does Dogecoin have a future?
Dogecoin may have started life as something of a joke, but 2021 revealed the meme-coin as a force to be reckoned with. DOGE has continued to attract a loyal following and seems to be going from strength to strength as the year rolls on. It’s possible that the token has now built enough momentum to keep it amongst the top-tier cryptocurrencies.
Does Elon Musk support Dogecoin?
It’s rare to read about Dogecoin without the name Elon Musk cropping up these days, but it seems that the Tesla and SpaceX CEO has a soft spot for DOGE. Not only has he tweeted positively about the token, but he has also gone on record celebrating the coin’s success and pointing out the irony that, having started as a joke, it has also gone on to be a highly successful cryptocurrency.