The answer to the question: 'Is now a good time to buy Dogecoin?’ Will likely depend on Dogecoin price prediction updates. As per DOGE price forecasts, Dogecoin is predicted to cross the $1 mark price in 2022, soaring towards the $2 level in 2023 and $5 in 2025.
Key points:
- A Dogecoin-funded space mission in 2022.
- Dogecoin protocol improvements.
- A vibrant community.
- Overall market growth.
The crypto bull run of 2020 to April 2021 was nothing short of epic. The crypto market went from a total market cap of just over $200 billion to over $2 trillion.
One of the biggest winners in this rally was Dogecoin (DOGE). Dogecoin rallied by over 12,000% to hit a high of $0.77 in April.
While it went into a correction shortly after due to broader market dynamics, it has since bounced back to over $0.15.
This means anyone who bought back in 2020 is still in a massive profit at this point. However, after such a huge rally, anyone just looking to buy into Dogecoin now could find themselves in a dilemma.
Such an investor may be wondering whether it’s now a good time to buy Dogecoin. This analysis seeks to figure this out.
Why Now Is The Best Time To Buy Dogecoin:
1. The Dogecoin Space Mission
Going forward, the most anticipated news for Dogecoin is the Doge-1 mission by SpaceX.
Elon Musk said earlier in the year that he intends to put a literal Dogecoin on the moon.
While it sounded like a gimmick at the time, Musk seems intent on making it happen. The Doge-1 mission is in the works, fully funded in Dogecoin, and is scheduled for Q1 of 2022.
This mission will impact the value of Dogecoin positively for two reasons. First, it will generate a lot of hype around Dogecoin. If the past Dogecoin hype cycle is anything to go by, then this could be bigger.
For context, Dogecoin went up by over 12,000% based on tweets alone. Putting it on the moon is a much bigger event, and could see Dogecoin gain by an even more considerable margin.
Then there is the potential for adoption that this event will trigger. During the last Bull Run when Dogecoin outperformed the market by a huge margin, there was a huge increase in the number of companies accepting Dogecoin for payments.
Now that it will be part of an event that will be televised live all across the globe, the level of adoption could be even more exponential.
Since Dogecoin is primarily a payments crypto, such adoption could see its intrinsic value increase exponentially going into the future.
2. Dogecoin Protocol Is Getting Improvements
For a long time, Dogecoin did not have a developer team. This means it has gone for years without any improvements to its protocol.
However, this changed after Elon Musk showed interest in the project and the rally that ensued.
The developer team returned and even started implementing some protocol upgrades that Elon Musk had suggested.
One of them is a proposal to cut transaction costs, and also increase the block size for Dogecoin to scale better.
Once these changes are put into effect, they will positively affect the adoption of Dogecoin.
That’s because it will be competitive enough to carry large-scale transactions, fast and affordably.
Adoption translates to higher demand, and that is good for the long-term value appreciation of this blockchain.
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3. Dogecoin Has A Strong Community
Dogecoin has one of the most vibrant communities in crypto. The following that Dogecoin has, is only rivalled by the likes of Bitcoin and XRP.
The interesting side to it is that it always had this fanatical following way before Elon Musk. Even when it was practically a joke coin, Dogecoin had a strong meme community behind it.
A strong community has the impact of keeping Dogecoin among the top searches on search engines and social media. The effect is the ability to draw in new investors, further pushing up demand.
In a market with over 16,000 cryptocurrencies, all angling for investor attention, Dogecoin’s community is a huge factor in its long-term growth.
One can argue that without it, Elon Musk would probably never have cared about the project back in 2020.
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4. The Crypto Market Is On A Growth Path
Dogecoin’s value appreciation in the past has not happened in isolation. It has always moved in line with the broader crypto market.
In 2020, Dogecoin rallied only after Bitcoin gained the momentum to push through the $20k mark.
Similarly, Dogecoin’s current recovery from its lows of June has been in tandem with Bitcoin’s bounce off its lows of $28k.
If this correlation is anything to go by, then Dogecoin has a good future ahead of it. That’s because, overall, prospects for the crypto market are good.
Bitcoin, by far the most significant determinant for market direction, is only getting scarcer. This, with its demand on the rise, means its price can only go up.
This will pull the rest of the market, including Dogecoin, whose fundamentals are getting better too.
Based on these market fundamentals, it would be a good move to buy Dogecoin now. That said, it is important to remember that DOGE is still a highly speculative asset that fluctuates wildly.
If you are considering investing in Dogecoin (DOGE), there is never a perfect time. If you believe in Dogecoin's value in the long-term, then buying and holding could prove to be a good strategy.
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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
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