Dogecoin (DOGE) has rallied by over 12000% over the past year. The crypto’s price moved from just over $0.004 in March 2020 to over $0.70 in May this year.
While this move made many people rich, the big question on every investor's mind now is, can Dogecoin repeat the same feat in the next 5-years?
This article explores the long-term prospects of Dogecoin to figure it out.
Dogecoin In The Next Two Years
Experts using deep learning techniques believe that Dogecoin could trade between $0.96 and $1.2 in 2022.
The general consensus is that Dogecoin will hit $1 within 2021. Several factors support the potential for Dogecoin to hit $1 within 2021.
The Whole Market Is Bullish
Dogecoin, like all other cryptos, moves in tandem with the broader market, more specifically Bitcoin.
While Dogecoin benefited a lot from Elon Musk’s hype, it cannot be lost to an observer that it benefited immensely from the overall crypto market bull run.
When Bitcoin (BTC) crossed the $20k mark, altcoins, including Dogecoin, rallied and made new highs.
Following the same rationale, now that the market is gaining upside traction again, Dogecoin has lots of potential to retest its all-time highs.
However, it has some news coming up that is likely to boost it to $1 within the year.
Read Also: Why Dogecoin Will Skyrocket
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
The Upcoming Doge-1 Mission
The key factor likely to boost Dogecoin to $1 or more is the upcoming Doge-1 mission. This is a moon mission by SpaceX that is fully financed in Dogecoin.
The mission also aims to lift a physical Dogecoin to the moon. While the mission is scheduled for Q1 of 2022, the momentum is likely to start building up towards the end of 2021.
This could give Dogecoin the boost it needs to cross the $1 at the end of 2021 or in early 2022.
Once the mission becomes a reality, the excitement around the event could see Dogecoin rally to $1.5 or more in Q1 of 2022.
However, after over a year of parabolic growth and the reason for the rally behind it, Dogecoin could experience a slight correction in Q2 of 2022.
Due to profit-taking, Dogecoin could enter a correction that could see it drop to around $0.96 to $1.
Such a correction would also be pegged on broader market sentiment. If the broader crypto market remains bullish in Q2 of 2022, then Dogecoin could sustain above $1.2. If the broader market will be in a correction, then Dogecoin could find support at $1 to 0.90.
Going into 2023, experts predict that Dogecoin could be trading anywhere between $1.2 and $1.5 per coin. Its value at this point will be pegged on adoption and wider market performance.
Check Out: 5 Reasons Why Dogecoin Could Double Your Money
Dogecoin Adoption
Lately, there have been lots of voices who are optimistic about the adoption of Dogecoin as a currency.
One of the more vocal ones is Mark Cuban. The billionaire recently tweeted that Dogecoin was the strongest cryptocurrency for use as a medium of exchange. Others like Elon Musk hold similar views.
Elon Musk has even been working with the Dogecoin developer team to develop updates that would make Dogecoin transactions faster, and cheaper. One such update involves increasing the block size.
With all these influential people talking up Dogecoin’s use case as a currency, its potential to grow seems to be pretty strong.
Besides the hype-driven by billionaires, Dogecoin’s value potential for adoption is enhanced by the fact that it is an inflationary cryptocurrency.
Ideally, this means that there is an incentive to spend Dogecoin unlike Bitcoin or other deflationary cryptocurrencies.
This incentive is not there in deflationary cryptos because everyone expects their value to keep going up infinitely due to their low supply. As such, rather than treat such cryptos as money, they see them as investments. More akin to stocks than dollar bills.
On its part, Dogecoin is more like fiat currency. The only difference is that Dogecoin is decentralized, and its inflation rate is hard-coded in the protocol.
Inflation is a factor that could see many businesses start adopting Dogecoin for everyday payments in 2022 and beyond.
So Where Will Dogecoin Be In Five Years?
Unlike an S&P 500 company where it is possible to forecast its potential market size in five to ten years, cryptocurrencies are a whole different ball game.
This is still a relatively new industry, and there are lots of unknowns in this market. For instance, no one would have predicted that the crypto market cap would go from around $200 billion to over $2 trillion in just a year.
The same can be said of the next five years. There are lots of predictions out there on where the market could go. The more optimistic voices believe that Bitcoin could be trading between $500k and $1 million in the next 5-years.
In such a scenario, top altcoins like Dogecoin would be trading at prices that may seem unrealistic today. For instance, if Bitcoin were to hit $1 million, then $10 Dogecoin would be within the realms of possibility.
At the same time, there are the more temperate voices that believe that going forward; regulations could threaten the exponential growth that crypto has experienced so far.
Such voices cite things like the U.S infrastructure bill, the Chinese crackdown on crypto as some of the potential threats that the market faces.
The bottom line is that no one knows what will happen to Dogecoin or any other crypto for that matter in the next five years.
However, if history is anything to go by, those who hold for the long haul are always well-rewarded.
Someone who bought a sizeable portion of Dogecoin or any other crypto 5 years ago is rich now.
A similar thing is likely to happen over the next 5-years. Despite the risks, more people are investing in crypto than ever before. Businesses, too, are adopting them for everyday payments.
These are factors that point to good tidings for Dogecoin in the future.
Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.
How Much Will Dogecoin Be Worth In Five Years?
According to the DOGE price prediction offered by experts, Dogecoin is set to rise to $0.72 by the end of 2021, $1.35 in 2022, to soar all the way to $5.75 by December 2025.
Based on Dogecoin projections from CoinLiker, the DOGE coin price is expected to rise significantly in the coming years, valued at $0.85 in 2021, $1.42 in 2022, $1.80 in 2023, $3.46 in 2024 and $6.54 in 2025.
Longforecast predicts one Dogecoin could be worth $5.69 by the end of 2025.
Price Forecast projections look realistic. The price of Dogecoin is expected to rise from $1.95 at the beginning of 2025 to $3.58 at the end of 2030.
Dogecoin Price Predictions 2025-2030
| Year | Mid-Year | Year-End |
|---|---|---|
| 2025 | $2.17 | $2.32 |
| 2026 | $2.49 | $2.17 |
| 2027 | $2.28 | $2.34 |
| 2028 | $2.20 | $2.30 |
| 2029 | $2.35 | $2.46 |
| 2030 | $2.27 | $3.58 |
Is Dogecoin A Good Investment?
Should I invest in Dogecoin? DOGE: buy or sell? Maybe these questions are still in your head. Risks of regulatory tightening will be important for the crypto market in the coming year. If you're in for some HOLDing, then Dogecoin could be a good investment.
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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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