Why Dogecoin Will Skyrocket
Within two months, Dogecoin (DOGE), the famous meme cryptocurrency, went from being a mere joke to a 90 billion dollar digital asset at the heights of its price and popularity. It is still the talk of the crypto market, with a growth of over 18,400% this year that hit an all-time high of $0.74 on 8 May.
Dogecoin started as a joke, but its resurgent popularity encouraged the creators to return to the project and develop an upgrade to the protocol.
Even though Dogecoin has had a price drop in the recent market crash, it is still one of the best cryptocurrencies in price and mass adoption. So let us see why Dogecoin will skyrocket to heights in the coming years.
Why Choose Dogecoin?
The meme crypto-token was created to poke fun at the proliferation of Bitcoin knockoffs. But today, with a whopping surge in its price, DOGE is one of the fastest-growing cryptocurrencies.
The token found its applications in transferring small amounts of money instantly with low trading fees. Social media users also used dogecoin to tip content creators from a secure wallet and protect their privacy.
Additionally, this infamous coin is made from a fork of Bitcoin and enjoys its unique benefits. DOGE eventually won over investors’ trust, who realized that it was not merely a Ponzi scheme but had some real applications.
It has a low entry cost as Doge tokens barely cost a few pennies. As the popularity of the coin increased, so did the demand and supply.
Is Dogecoin Going To Skyrocket In 2021?
Even though it started as a tech-geek satire, Dogecoin’s blockchain, Proof-of-Work process, and minting procedures are stable, efficient, and secure, boosting the coin's price. As crypto nerds recognized its potential, the token started amassing a real following.
Dogecoin has seen a tremendous increase since the beginning of 2021. But it was also caught up in the broader cryptocurrency market selloff, which was partly prompted by Elon Musk’s tweets.
However, Dogecoin still displays signs of promising growth that will likely make its previous price predictions come true in the near future.
A noteworthy point about Dogecoin is that it consumes very little energy. It is crucial, especially now, as cryptocurrencies are being criticized as highly energy-intensive. However, unlike Bitcoin, DOGE uses the scrypt mining algorithm, making it highly energy-efficient and environmentally friendly.
Additionally, Musk, the loudest voice in the market for Dogecoin, has been posting several tweets boosting the coin that have recently driven short-term spikes in the price; however, it has still remained under pressure.
Don't Miss: Will Dogecoin Make Me Rich?
Factors That Skyrocket Dogecoin To New Heights
Along with a vibrant community, multiple factors back up the meme cryptocurrency and drive its price ranges. Let us explore some of them.
Recent Listing On Popular Exchanges
One of the significant reasons why Dogecoin will skyrocket in 2021 is Coinbase's recent announcement that Dogecoin is being listed on their exchanges around the world. The Dogecoin Coinbase listing was a piece of positive news for investors and holders as Coinbase is one of the biggest crypto exchanges in the world.
This will eventually boost DOGE’s value as millions of Coinbase users now have access to buying the token, pumping up its price.
Along with Coinbase, crypto exchanges like Gemini and Multi-asset brokerage eToro have also listed Dogecoin in 2021, which attracted more users to its current user base.
A prominent feature that separates Dogecoin from most other altcoins available today is inflation. Bitcoin and several other cryptocurrencies are deflationary in nature, formulated to have a hard supply cap of currencies. The potential problem here is that once the cap is reached, it might cease to be a profitable asset for miners. Eventually, the price of the token might rise enormously high.
While Dogecoin, rather than trying to beat deflation, depends on it. New DOGE can still be mined even if there is a massive drop in its value. These newly mined coins will eventually replace the lost ones to sustain a steady supply of about 100 million active Dogecoin tokens.
This mechanism will benefit Dogecoin as it can be accepted as a viable medium of exchange worldwide, leading to mass adoption.
Increasing Media Popularity
With the internet buzzing about Dogecoin, there is no doubt that its price would skyrocket to new heights by the end of 2021. DOGE is a unique cryptocurrency with users across social media networks such as Reddit, Twitter, TikTok, and Facebook, who positively influence the price.
Elon Musk has always been and continues to be an ardent supporter of the coin with his series of tweets, calling himself the Dogefather and even suggesting that Tesla might accept it as a mode of payment rather than Bitcoin. This has boosted its price overnight, garnering support from all sectors. Even though the crypto community has criticized him for manipulating the prices of tokens like Bitcoin and Dogecoin, he reaffirmed his support for Doge by posting yet another meme on his Twitter handle.
However, Musk has been joined by billionaire entrepreneurs like Marc Cuban and brands such as Snickers and Slim Jim beef jerky, showing their support and trust in the meme token through social media channels. All these have collectively skyrocketed the price of Dogecoin in the market recently.
The unique and vibrant Dogecoin community has fueled the token price, positioning it as a potential investment option for investors. Today, the number of companies accepting DOGE as a mode of payment has increased tremendously.
In March, prominent communities like Dallas Mavericks (tweet) NBA team, high-end car dealership Post Oak Motor Cars, luxury resort company the Kessler Collection, and Latvian airline airBaltic added DOGE to their accepted payment methods.
The cryptocurrency ATM operator CoinFlip also added Dogecoin to its network of 1,800 terminals across the US, boosting its adoption. Adding to its resurgence, BitPay, the largest provider of crypto payment services, also offers DOGE now as a payment method.
Why Dogecoin Will Skyrocket: Expert Predictions
Dogecoin has been showing continued growth even after the recent price drop in May. As of writing, the coin trades at $0.323414, significantly higher than it stood at the beginning of the year.
Therefore, several experts predict that Dogecoin is going to skyrocket in the coming decades. For example, experts from Digitalcoin say that DOGE is expected to have quite a bullish momentum and will be heading towards an average of $0.49 in 2021. If it continues to keep its momentum, the coin will trade above $1 by the end of 2022.
The Algorithm-based forecasting service Wallet Investor predicts that it will trade up from $0.35 at the beginning of July and reach $0.42 by the end of this year.
Check Out: Dogecoin Price Predictions
Therefore, the meme crypto token is no more a mere joke now. The Dogecoin price has immense potential. With this kind of fame, it will surge higher to mythic heights in the near future.
Dogecoin has been on an exciting journey with its fair share of ups and downs. Even though it was initiated as a fun concept, it evolved to be a potential project donating hundreds of thousands of dollars for several social causes.
With multiple companies accepting DOGE as a viable mode of payment and the increasing support from prominent personalities across social media channels, Dogecoin will likely skyrocket to new heights, slowly moving to mass adoption worldwide.
eToro – Best Exchange to Buy Dogecoin
eToro have proven themselves trustworthy within the Crypto industry over many years – we recommend you try them out.
Virtual currencies are highly volatile. Your capital is at risk.