Dogecoin has to be one of cryptocurrency’s most unlikely success stories. Having started out as essentially a parody of Bitcoin, the altcoin has established such a strong following that it is now one of the most talked-about tokens on the market.
In fact, DOGE is in the running to become the first cryptocurrency in space, literally, as Elon Musk's SpaceX firm has announced that it will launch "DOGE-1 Mission to the Moon". This is some accolade for a token that started life as a joke.
Some would point out the irony that a token set up to satirise the wild price speculation surrounding early cryptocurrencies like Bitcoin and Litecoin has itself gone on to become the seventh biggest cryptocurrency in the world, with a total market cap in excess of $44.7 billion at the time of writing. But if anyone is laughing now, it’s the investors who saw DOGE’s potential early on.
Of course, anyone familiar with the cryptocurrency market will know that Dogecoin has experienced something that’s become known as the Gamestop phenomenon. Put simply this is a kind of group dynamic where an online community effectively conspires to drive the price of an asset astronomically high.
But is Dogecoin all hype, or does it have the credentials to compete with the biggest players on the crypto scene? In the following Dogecoin price prediction, we’ll take a look at what the Shiba Inu-fronted token can offer investors in the long term, including a look at its technical particulars and possible reasons for its uber-loyal fanbase.
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- Dogecoin - A Technical Recap
- Dogecoin - The Philanthropist’s Cryptocurrency?
- Looking at Dogecoin’s Recent Price Performance
- The Power of Reddit
- The Musk Effect
- What’s next: Dogecoin Price Predictions for 2025
- Looking Further Ahead: Dogecoin Price Predictions for 2030
- Conclusion: Should you invest in Dogecoin?
- Where to Invest in Dogecoin
- Dogecoin Price Predictions 2025, 2030 - FAQ
Dogecoin - A Technical Recap
Dogecoin might have started as a joke, but its blockchain certainly isn’t without merit. The original blueprint was based upon that of Litecoin, which itself was a refined version of the Bitcoin model.
Like most early cryptocurrencies, Dogecoin is an open-source peer-to-peer payment system that was born in 2013 when Australian Adobe employee Jackson Palmer and IBM developer Billy Markus got together to create a "fun" alternative to Bitcoin as a way of satirizing the nascent crypto hype. Doge famously has a Shibu Inu (Japanese dog) as its logo, an homage to a famous meme, says a lot about the lightheartedness of the project.
Dogecoin bears many similarities with both Litecoin and Bitcoin - it is a decentralised network of computers that process transactions via blockchain technology. The network is powered by its native cryptocurrency, DOGE.
Whereas Bitcoin uses the cumbersome SHA-256 algorithm, Dogecoin followed Litecoin’s example by using the Scrypt algorithm, which allows for a much faster block creation time: 2 - 3 minutes, compared to Bitcoin’s 10-plus minutes.
Today, Dogecoin’s underlying technology can hardly be considered revolutionary, but to be fair, neither can Bitcoin’s - and BTC still holds the number one spot with regards to its token value. However, DOGE’s strength lies in the cult-like following it has built since 2013.
Check Out: Could Dogecoin be a Millionaire-Maker Coin?
Dogecoin - The Philanthropist’s Cryptocurrency?
Dogecoin’s community has become the stuff of legend in the cryptocurrency world. In fact, it wouldn’t be an exaggeration to say that DOGE’s recent fortunes have been entirely driven by its army of zealous supporters.
In fact, according to a Galaxy Digital Research report, whilst Dogecoin does have “remarkably strong” fundamentals, it is the ever-growing community that is “determined to meme a Shiba Inu-themed global currency into existence." This is no joke either, as long as Dogecoin remains fashionable, its follower community is enough to stabilise the altcoin within the market.
But whilst many have dismissed it as the “millennials’ cryptocurrency”, the Dogecoin community has actually proved itself as a force for good on several occasions, with the currency being used extensively for philanthropic purposes.
For example, the Dogecoin community famously raised around $30,000 to help the Jamaican bobsled team go to the Sochi Winter Olympics in 2014. This gained a great deal of media exposure and DOGE actually overtook Bitcoin in transaction volumes by mid-January.
Then in February that same year, “Doge4Kids” started - a community-led initiative that raised $30,000 for the 4 Paws For Ability charity which provides service dogs to young people with special needs. The Dogecoin community also raised $50,000 to support a charity that builds clean water facilities in Kenya.
These projects might not have driven Dogecoin’s price to massive highs, but they established DOGE as very much a community-driven coin. As we shall see, this would indeed prove to have significant impact on the price of DOGE.
Looking at Dogecoin’s Recent Price Performance
Looking back at Dogecoin’s historic price reveals a pretty flat line - especially when compared to other cryptocurrencies that have been around for as long as DOGE has. Whilst it did benefit from the famous crypto cryptocurrency bubble of 2017/2018, when the price of DOGE reached $0.017, things soon went south when the bubble burst, prompting many to speculate that this dog had had its day.
Between 2018 and 2020, Dogecoin was seen as nothing more than a fashionable coin, lauded by a few hardcore fans but with very little real-world application. However, fast forward to 2021 and DOGE’s fortunes changed - significantly.
In January 2021, following a tweet from Tesla CEO Elon Musk touting DOGE as ‘the people’s crypto’, prices suddenly surged - at one point growing by over 800% in 24 hours and eventually settling at around $0.079 that month. This generated a fair bit of potential for DOGE, but it turned out that this was just the start.
In April, DOGE skyrocketed again to $0.40 - an increase of over 700% in a matter of days. Naturally, this generated a huge amount of interest and it wasn’t long before DOGE was on the move again, this time reaching its all-time high of $0.73 on 8 May 2021.
So what has made Dogecoin such a hot commodity all of a sudden? Well, as we’ve already touched upon, the answer lies largely with the Dogecoin community as well as continued interest from Elon Musk.
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The Power of Reddit
At this stage of 2021, any investor who is not aware of the substantial influence that Reddit can exert over the price of an asset is well behind the curve.
The GameStop phenomenon was some of the biggest news in finance for the first few weeks of the year. The beleaguered retailer's stock price surged from $40 to over $400 in a matter of days, thanks to a group of rebel investors that gathered in the r/WallStreetBets subreddit and decided to play institutional investors and hedge funds at their own game.
Whereas the big investment firms had started short-selling on Gamestop, the Reddit community started buying up the remaining stock en masse, which pushed up prices and left the big fishes unable to close out their positions before they lost millions.
The effect campaign ultimately went viral and it wasn’t long before the crypto world had its own price frenzy - with Dogecoin being the asset of choice. After Elon Musk apparently expressed his support for the altcoin, Reddit lit up with users discussing the potential for ‘the next Gamestop’ which eventually led to Dogecoin’s price going stratospheric.
In April, the r/dogecoin community swelled by 152,928 subscribers in a single week, and at the time of writing the subreddit has over 2 million ‘subshibers’ - making it one of the most prominent crypto subreddits there is.
Given the potential of Reddit to drive price growth, this could well continue to be an important factor in DOGE’s future potential as an investment asset.
The Musk Effect
Despite his main business interests lying outside the realm of cryptocurrency and blockchain technology, Tesla and SpaceX CEO Elon Musk was also voted CEO of Dogecoin in 2019 and has since wielded considerable influence over the cryptocurrency market - especially in recent months.
And where Elon treads, it seems that price surges are sure to follow. We only need to look at how his support of Bitcoin sent prices of BTC surging earlier in 2021, when Tesla acquired a significant holding of the original cryptocurrency.
We’ve already discussed Elon’s tweet in January, which prompted a Reddit-fuelled price frenzy. Then there’s his pledge to “put a literal Dogecoin on the literal moon”, sent the price of Dogecoin surging by 30% to $0.70 within minutes of the tweet being posted.
Fast forward to May and Musk has once again put Dogecoin in the spotlight. This time, the SpaceX and Tesla CEO took to Twitter to appeal to developers to come on board and “help develop Doge”. As per the established paradigm, the price of DOGE was on the move soon after Musk’s tweet.
No one could say for sure that Musk’s comments were the sole reason behind the various price surges, but many crypto analysts believe the tech mogul is so influential that he is able to effectively steer prices.
Whilst his comments about DOGE have often sent prices up, it’s worth noting that Musk’s U-turn on Bitcoin has been widely seen as the catalyst that sent prices crashing ahead of the China crackdown.
Few would argue that Elon Musk is a hugely influential figure and his support of Dogecoin could be critical in helping the altcoin to compete with more technically advanced cryptocurrencies.
What’s next: Dogecoin Price Predictions for 2025
It’s fair to say that Dogecoin has not only survived against the odds but is actually beginning to look like it will be the most popular cryptocurrency of 2021. But what does that mean for the coming years? And can DOGE hold its price based on community spirit alone?
TradingBeasts believes that Dogecoin DOGE will perform well in the coming years. With prices increasing steadily year-on-year until the end of 2024. Whilst it is not expected to reach parity with the US dollar in that timeframe, TradingBeasts believes Dogecoin will be trading at a potential high of $0.73 going into 2025.
Meanwhile, DigitalCoinPrice has made a similar forecast. According to its technical analysis, DOGE will finish 2021 at $0.49 but will continue to creep up over the next 3 - 4 years. By 2023 it will reach $0.71 and during 2024 Dogecoin DOGE is expected to reach a new all-time high of $0.87, before continuing its upward trajectory into 2025.
Finally, the Economy Forecast Agency is predicting a few turbulent years ahead for DOGE. It has the altcoin bouncing between $0.35 and $0.50 for the next couple of years, before things start to settle into an upward trend in 2024 when the platform expects Dogecoin to finally reach parity with the US dollar.
By 2025, the platform has Dogecoin recovering, climbing back up to around $2.5 by the middle of the year.
Looking Further Ahead: Dogecoin Price Predictions for 2030
Long term Dogecoin price predictions are difficult to make, as the token relies so much on its community for price movement and no platform can really predict group-led trends. However, they can be useful in giving us an idea about current market sentiment towards DOGE.
DigitalCoinPrice seems to believe that Dogecoin will continue to last the test of time, breaking the $1 barrier in 2025 and continuing to see growth over the next 8 years or so. By the end of 2020, the platform expects DOGE to be trading at a potential high of $2.53.
Meanwhile, Coin Price Forecast has also ventured to make a Dogecoin price prediction for 2030 - and it’s an optimistic one at that. According to the platform’s technical analysis, DOGE will have exceeded the $1 mark by the end of 2021 and by 2028 it will have soared past $10. By the time 2030 comes around Coin Price Forecasts predicts Dogecoin will be worth as much as $12.25 per token.
A cryptocurrency research firm by the name of Crypto Research Report is calling for Dogecoin (DOGE) to reach $2.4 by 2025, and $5.70 by 2030.
Read Also: What Will Dogecoin Be Worth in 10 Years?
Conclusion: Should you invest in Dogecoin?
Most dOGECOIN price predictions suggest that the altcoin can expect to see a significant growth over the coming years. Leading analysts vary wildly on their forecasts - but if even the most conservative predictions pan out, anyone who chooses to invest in Dogecoin could see good returns.
When it comes to investing, Dogecoin is a very unique asset. Whereas some might argue that it has no intrinsic value, others might point out that the community aspect of a cryptocurrency should not be overlooked - and DOGE’s price movement in 2021 would certainly support this view.
Those arguing that Dogecoin lacks the technical credentials to compete with some of the newer smart coins only need to look at Bitcoin, which, despite being comparatively dated when it comes to infrastructure, continued to dominate the cryptocurrency market.
So can Dogecoin do the same? Realistically, no one knows what the future may hold for the cryptocurrency market - new projects continue to appear, countries continue to regulate and investor sentiment continues to change, but it’s just possible that having a strong community will allow DOGE to weather storms that might sink other cryptocurrencies.
If you’re considering investing in Dogecoin, we’d suggest having an adaptable strategy. DOGE’s price is likely to fluctuate a great deal - especially if there are any more comments from Elon Musk or Reddit-fuelled buying frenzies. As such, the old adage of ‘buy low and sell high’ could well be worth remembering when it comes to Dogecoin.
Where to Invest in Dogecoin
If you do decide to buy Dogecoin, then you’ll need to do so from a crypto exchange that is currently listing the coin. There are plenty on the market, but for most investors, we’d recommend eToro.
The platform has a solid reputation in the world of both cryptocurrency and retail trading, not to mention offering a user friendly and powerful trading platform that can give you instant access to the market. You’ll also find plenty of information to help build your wider trading strategy, as eToro offers plenty of reviews, trading guides and market news.
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Is Dogecoin a good investment in 2021?
Dogecoin is one of the most popular cryptocurrencies there is, with a famously loyal community and even support from the business and celebrity world. Whilst some traditional investors may dismiss these qualities, others are starting to realise that they may well convert into positive price movement. Dogecoin is a risky investment, there’s no doubt, but it could well be a good buy in 2021.
What are Dogecoin price predictions like for 2025?
Dogecoin has proved its resilience - having remained relevant since 2013 - and many analysts are predicting growth for the altcoin over the next few years. DigitalCoinPrice, for example, has Dogecoin DOGE reaching $0.87 by 2025.
Does Dogecoin have a future?
It seems crypto analysts have consistently tried to write DOGE off as something of a joke, yet the coin continues to survive and has recently been going from strength to strength. Given the commitment of the DOGE community, we think this altcoin will be around for years to come.
Where can I buy Dogecoin?
If you want to buy Dogecoin, then you’ll need to find a broker that lists the token. We recommend eToro for most users, as it’s an approachable platform that has all the necessary regulatory credentials.
Can Dogecoin double my money?
No one can say for sure how a coin’s price will move. We wouldn’t suggest that Dogecoin will double your money, but it’s worth noting that it has been subject to some jaw-dropping price movement recently - so it could certainly provide significant returns for those who buy at the right time.