January 3rd marked the 12th anniversary of Bitcoin. Against it all, Bitcoin managed to best all circumstances and continues to intrigue and inspire millions. It was truly a time to celebrate. On that same day, Bitcoin reached an all-time high of $35,000; indeed, another reason to bring out the champagne bottle.
But while many celebrated this new all-time high, many were surprised to find another, almost unknown altcoin also reaching high levels of price growth. This altcoin is Dogecoin. During that same period, the price had pumped over 100%, reaching an astonishing $0.0110.
Before this pump, few had ever heard of Dogecoin and those that did not give it any serious consideration. But after this big, unexpected pump, some began to wonder if it really had any potential.
This Dogecoin price prediction article will take a look at the fundamentals of Dogecoin, its origins, and its future price forecast in both the short and long term to enlighten the reader if whether Dogecoin is really barking up the right tree.
Dogecoin Historical Price Analysis
The price of Dogecoin has had a rather stable, almost lifeless pulse throughout the first half of its history. According to CoinMarketCap, Dogecoin started at $0.000565 but then saw a slight decrease to around $0.0001 for the first few years. Then at around March of 2017, the price began to increase a bit, dump down again, but by November 2017, it massively spiked up to $0.01877 on January 7, 2018, its all-time high.
As predicted, whenever a digital coin reaches its peak, Dogecoin saw a massive dump in the weeks following its all-time high. However, when compared to its first few years, the DOGE token price was much more active in the aftermath of the 2017-2018 bull market run. There were frequent high and/or low pumps and dumps in the years after. As a consequence of this much activity, it never reached its all-time low of $0.00008547.
It then somewhat slowed down a bit in the years between 2019-2020. It ended the year 2020 with a price of $0.004657. However, a few days later, its price began to massively increase rapidly, reaching a sudden price of $0.01285 by January 3, 2021, before it started somewhat cooling off again.
Current Price, Market Cap, & Supply Details
At the time of writing this article, the DOGE token has a current price of $$0.001937. According to CoinMarketCap, it is ranked at #33 in the entire crypto market because of its sudden surge! Not bad for a meme coin.
It's current market cap is $1,170,919,632 with a circulating supply of 127,997,773,252 DOGE tokens. It does not have a max supply.
In the last 24 hours, the price has gone up +4.10%, but it has experienced a -11.45% decline in the last 7 days.
Dogecoin (DOGE) Future Price Forecast Predictions
Considering that Dogecoin was created as a light-hearted joke and be used merely as ‘pocket change,' one would not expect such a coin to last in the crypto space for long. And yet, as if sometimes is the case, the crypto market tends to surprise everyone. This is why no one expected this little crypto's sudden price spike and the hype it created.
With that being said, given its fundamentals, it isn't easy to examine how this crypto will do in the years to come. For many, the only reason why the price went up was from the hype coming from well-known figures, namely Elon Musk's twit on Twitter.
Once the excitement dies down, many assume that the price will inevitably collapse back down to obscurity. However, there are other features that Dogecoin possesses that may give it a fighting chance.
However, it must also be stated that not all sources share the same view. Wallet Investor, for example, while scaling Dogecoin as being very bullish in the short term, does not have the same level of optimism in the long term. Quite the contrary. It forecast increasingly negative levels of growths in the following years.
Digitalcoin and Tradingbeast, on the other hand, have a very positive outlook for the price of a DOGE token in both levels of longevity.
Short Term Forecast
Long Term Forecast
Dogecoin Price Prediction 2021
Throughout the year 2021, Digitalcoin forecasts positive increases in the price, with October supposedly having the greatest price increase in terms of percentage. The average price for the year would be around $0.01238.
Dogecoin Price Prediction 2022
2022 also presents another year of positive growth. Here the average percentage of growth is forecasted to be at around 81.37%. The price will vary throughout the year, but it is expected to be between $0.0138 from its lowest in June to its highest of $0.0177 in November.
Dogecoin Price Prediction 2025
Lastly, 2025 is forecasted to be highly favorable for any Doge Hodler (not a typo). This year, the price is expected to more than double, having an average percentage growth rate of 193.64%.
Dogecoin can be sought out and bought in several exchanges. To name a few; MXC.com, Binance, Huobi Global, OKEx, OceanEx, and Kraken. You can go over to CoinMarketCap or CoinGecko to get a full listing of exchanges that list Dogecoin.
If you prefer a quick and easy way to exchange your cash for Dogecoin, you can always check Changelly:
Is Dogecoin a Good Investment?
By the looks of things, basing solely on the price prediction, it seems that Dogecoin appears to have good projections of high levels of growth in the years to come. However, there are risks to buying Doge tokens.
For one thing, other than having a cute meme, being widely available, the hype around it, and the current bull market that is projecting many altcoins to experience high levels of growth, there doesn't seem to be anything else going for it. It has weak fundamentals.
Therefore, whether or not that is enough for Dogecoin to qualify as a good investment will depend on the investor's strategy. Meaning, the investor buying Doge solely due to its meager cost, cute meme, and the hype around it to make a quick buck, or perhaps because of its other features?
What other features does this altcoin have? That's what we'll take a look at next.
More Information About Dogecoin
What is Dogecoin?
Dogecoin has a fascinating origin story. To quote its creator, “Dogecoin is the spare change you throw in the jar when you get home.” Unlike other altcoins, it was created purely as a tongue-in-cheek digital coin. It is an open-source, decentralized, peer-to-peer cryptocurrency based on the famous 2013 Doge meme Kabosu, a Japanese Shiba Inu. Its token is the DOGE token.
It was created to stem off the negative stereotype surrounding cryptocurrency as a ‘dark' market for criminals and money launderers.
The first DOGE token was released on December 16, 2013, but the first mine blocked was on December 6.
Like most other peer-to-peer cryptocurrencies, Dogecoin can be used as a medium of exchange. Although primarily used for tipping (yes, the creator literally meant you could use the token to tip users on Reddit and Twitter, you can also use the token to spend on various items and services.
Dogecoin is based on the proof-of-work algorithm from both Lluckycoin, now a dead crypto, and Litecoin. In being similar to Bitcoin, Dogecoin experiences a halving every 100,000 blocks. However, it uses Scrypt technology. Dogecoin's proof-of-work differs from Bitcoin's in other ways as well.
Firstly, the altcoin has a block time of 1 minute, costing about 1 cent. Secondly, although it was originally supposed to have a maximum supply of 100 billion tokens, due to an improper coding by Palmer, allowing 10,000 DOGE tokens to be minted per block after it reached its 100 billion limit, giving it an inflation rate is 5 billion DOGE tokens minted every year! Therefore, it does not have a max supply and makes Dogecoin unprofitable to mine.
However, its most interesting feature, and what probably allowed the token to stand the test of time, has to do with the concept of merge mining. Merge mining makes it possible to mine two different cryptocurrencies without sacrificing computational power or incurring costs. This allows more established cryptocurrencies to secure other smaller blockchains like Dogecoin. And who was that more established cryptocurrency? None other than the crypto market's digital silver, Litecoin!
Charlie Lee, the founder of Litecoin, approached Dogecoin's creator and proposed to merge mining the two cryptocurrencies. Considering that mining Dogecoin was highly unprofitable and having very few miners, it posed a serious risk of a 51% attack. Choosing Litecoin to merge its mining with was a no brainer.
They both used the Scrypt mining algorithm, allowing the Dogecoin network to become much more secure and decentralized. In August 2014, Dogecoin transitioned its mining algorithm to an auxiliary-proof-of-work, allowing it to merge with Litecoin's blockchain.
Due to this merge, Dogecoin has become highly correlated to Litecoin in terms of security and decentralization. If Litecoin were ever to go down or experience an attack, so will Dogecoin.
Dogecoin was created by Australian software engineer Jackson Palmer and American Billy Markus. After reading a Wired news article about the best memes of 2013, Palmer got the idea of creating a funny, cute, lovable digital coin that went against the stigma surrounding cryptocurrencies. As an active purchaser of website domains, Palmer bought the dogecoin.com domain with the now-famous doge logo and Comic Sans text.
Billy Markus approached Palmer and convinced him to make an actual Dogecoin cryptocurrency. He designed its protocol, basing it on other cryptocurrencies such as Litecoin. He soon left the project in early 2014 and gave all control over to Palmer.
Jackson Palmer eventually left Dogecoin in 2015 after the rapidly growing Doge community was scammed and manipulated. Paradoxically, part of his manipulation strategy was airdropping thousands of Dogecoins to charitable causes and sponsoring various community initiatives through the donation of DOGE tokens. Yes, the same person that helped put Dogecoin on the map was the same person that manipulated an entire community.
To summarize, Dogecoin is that cute little crypto that makes it possible for crypto to not be all about business and inciting revolutionary disruption in society, but to have fun. The token has a rather large community of supporters, with some reputable names such as Elon Musk, Jay Hao, the CEO of crypto exchange OKEX, former Coinbase Executive Linda Xi even Ethereum founder Vitalik Buterin. And yet, I'm afraid that's all that it's going for.
Other than having that cute meme, Dogecoin has no other fundamentals to compete with the likes of potential crypto giants such as Ethereum, Cardano, Polkadot, Vechain, Theta, ShareRing, Algorand, and even NEM, all of who are either trying to solve real-world problems or open vast new possibilities and markets.
With so many cryptos competing for attention and institutional adoption, it seems that Dogecoin is destined to really be nothing more than a ‘tipping crypto.' And yet, that might be why it could have a successful bull market in 2021.
Even though it does not have any serious potential value, the doesn't mean it cannot still become profitable. As its price history has shown, it is very well alive, with opportunities to make gains, and so long as more well-known names and institutions continue to use it, who knows where it will lead to. However, this writer does urge caution.
Although opportunities exist, based on the token's fundamentals, they are mostly centered on a short-term basis. With the arrival of more retail and institutional investors entering the crypto market, most concentrate on finding that ‘hidden gem' that is supposed to turn on huge profits. With that being said, it does not look as if Dogecoin will be making any significant gains for anyone on a long term basis.