Before the surge to popularity of Dogecoin, the bewildered Shiba Inu’s look that became the mascot for the crypto token was merely an internet joke. In 2021, Dogecoin became one of the most talked-about cryptocurrencies as it peaked 15,219% last May.
Its market share has also gained so much traction and is now the 10th largest crypto player. Today, Dogecoin is trading at around $0.17, and considering its great success this year, the momentum can only grow even more that may see it reaching the $1.
But hold your horses as this Bitcoin blog is not about to crown Dogecoin the king of cryptocurrencies just yet. While Dogecoin is indeed seeing the light of success recently, it is also slipping since its peak in May by 76%.
Here is a closer look at whether or not Dogecoin can indeed reach the dollar cap in its price and see it go in a positive direction moving forward.
From inception to this day: A good doggo all throughout
In 2013, two software engineers thought it would be a good idea to make the Shiba Inu meme their poster child for the all-new Dogecoin. As you may know, this meme has been so popular ever since the rise of internet jokes, and the attempt to create this coin is to blissfully make fun of the myriad of cryptocurrencies that keep springing up in the scene.
What the original creators of Dogecoin anticipated, however, is that many investors found the idea so absurd that they began investing in it. One investment led to the other, and all of a sudden, Elon Musk is promoting it in his social media accounts of how great DOGE is.
Musk tweeted that Dogecoin will be accepted as mode of payment for his Tesla products. This shifted DOGE to a grand direction that saw a 20% increase in value in a matter of minutes.
It was apparent that mere words from the influential entrepreneur can move mountains in the cryptocurrency business, but can other factors do the same? Right now, DOGE is facing two big challenges that stand in between it and the much needed push to reach the dollar.
Firstly, Dogecoin is not as distinguished as its more successful cousins like Ethereum, especially Bitcoin. For starters, its competitors like ETH have a great collection of blockchain features that users find very attractive like smart contracts and Dapps– all of which are absent in DOGE.
Dogecoin’s second challenge is its crypto supply. An unlimited maximum coin supply in its circulation means that investors won’t be able to feel the sense of urgency since it won’t ever get scarce. It’s also very likely to hold back gains.
About 14 million DOGE coins are mined each day where over 132 billion is currently in its circulation.
A potential billion dollar market value
Let’s go back to the original question: Can Dogecoin reach $1? It seems impossible after being priced currently at about $0.17, but if Dogecoin were to hit a market value of $132 billion, it would paint an entirely different picture.
Bitcoin and Ethereum are at the number 1 and 2 spots respectively in market capitalization. If Dogecoin reaches $132 billion, that places it in third place next to BTC and ETH. If one is optimistic, then this would probably happen in due time, but with how competitive the market is with a thousand more altcoins like DOGE, it just seems implausible to reach that high of a market cap.
It also doesn’t help that many altcoins have more features than Dogecoin that makes the others more attractive to investors. The only way for Dogecoin to reach the $1 price point is when the cryptocurrency market as a whole increases its value.
One way for Dogecoin to reach that price level is when it diversifies its features like Ethereum with wisely-incorporated smart contracts to its blockchain. There are no guarantees that it can reach $1 even with these changes as the market will continue to be volatile and nobody knows for sure how it will go down the line.
Should you invest in Dogecoin?
Dogecoin does have the possibility to reach the $1 mark, and just that alone is worthy of an investment. DOGE right now is incredibly cheap, and investing in such a hot commodity after Elon Musk’s promotion should give you the green light to push through with Dogecoin.
Like many other altcoins in the market, there is potential for greater things as the decade wanes. This Bitcoin blog should tell you that not everything is seen on the surface, and you should wait a bit more to see if Dogecoin is worthy of the $1 price tag it desperately wants to reach.