In the crypto world, every day we get new projects and start-ups with the potential to generate unimaginable rewards. Dogecoin is no doubt one of the most popular crypto projects in 2021, outpacing almost every other cryptos. Just like its symbol branded after a viral dog meme, Dogecoin has gone viral on the crypto community with a six-month return of 26,000%.So Dogecoin price prediction is a concern of many people
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What Is Dogecoin?
Created by Bill Markus and Jackson Palmer, dogecoin was invented partially as a “joke” for crypto enthusiasts in late 2013, with a popular meme of a Shiba Inu dog as its logo.
Dogecoin is a peer-to-peer, decentralized, and digital currency. Dogecoin is used as payments and recently people have started to use it as a tipping coin. But unlike Bitcoin and Ether, it doesn’t have a lifetime cap on the number of Dogecoins that can be mined or a burning system, making it highly inflationary. As of May 8, around 129 billion DOGE is in circulation. With Dogecoin breaking $0.7, its market cap reaches $89 billion, making it the fourth-biggest cryptocurrency by market cap.
What Makes Dogecoin Special?
Dogecoin supporters have spent years raising its profile, but it was not until the Gamestop saga that it became famous among the public. Later, Tesla CEO Elon Musk promoted it on his Twitter several times, each time taking the price of Dogecoin higher. The day when Musk tweeted an image of “Dog Barking at the Moon” with the caption “Doge barking at the Moon”, the price of Dogecoin rose 50%.
Exchanges are quick to catch up with the trend. eToro and Gemini allow users to trade Dogecoin. In addition, US basketball team Oakland Athletics announced its decision to accept Dogecoin as payment for tickets.
Besides celebrity endorsement, Dogecoin benefits from mass money printing and increased sentiments from retail investors. Apps such as Robinhood lower the bar allowing more people to invest in stocks and cryptocurrencies.
However, how to view dogecoin value is debatable.
Although Dogecoin payment is relatively faster than BTC and ETH, it falls short of the use cases of Bitcoin and Ethereum. For instance, Paypal and Visa have offered Bitcoin as a payment option and Ethereum can be used to facilitate smart contracts and DeFi.
Dogecoin is not as ambitious as Bitcoin, too. While some people now call it “the people’s crypto”, dogecoin’s protocol has not been upgraded for years and its main function stays as a “joke” to mock other cryptocurrencies. Without a capped supply, it can’t be qualified as a store of value. At the moment, the rallies are driven by meme culture and FOMO.
But in such a fast-changing world as the cryptocurrency market, everything is possible. A burn or new supply mechanism would be great leverage for Dogecoin to become mainstream.
How Is Dogecoin Created?
Dogecoin works on blockchain technology. Each cryptocurrency transaction is recorded on the blockchain. The blockchain is supported and maintained by thousands of computers(nodes). By confirming transactions, nodes will get free Doge as rewards and these nodes are called Dogecoin miners.
Dogecoin Price History Recap
Dogecoin has a history of almost a decade. Like many cryptocurrencies, it had been trading relatively flat before the 2017 crypto boom. But a new bout of consumer interest took the price of the coin to $0.003 from $$0.0002. DOGE even broke $0.007 at the end of 2017. Many altcoins suffered from severe loss due to tightening regulations from Southeast Asian countries. DOGE declined to $0.002 at the end of the year 2018. Despite ups and downs, Dogecoin attracted more attention and closed at $0.004 at the end of 2020.
Dogecoin Price Prediction 2021
Half a year into 2021, Dogecoin proves itself to be one of the strongest competitors for the title of the best-performing crypto of the year. It has climbed more than 26,000% in the past six months. However, corrections could be on the way and they are actually healthy for the long-term. The bold dogecoin price forecast is that the dogecoin USD pair could reach $1.
Dogecoin Price Prediction 2022-2023
The cryptocurrency market is a cyclical one. From the macro perspective, the U.S. government may start to increase interest rates as the economy recovers from the pandemic. Quantitative tightening could prompt investors to cash out and induce a bear phase.
Dogecoin Price Prediction 2025 And Beyond
To this day, bitcoin remains the most powerful cryptocurrency and could insert a huge impact on the whole market. In 2024 we will have the fourth halving event. Dogecoin could have a breakout as bitcoin becomes more popular and scarcer. Bitcoin has increased 600% after the third halving. In 2025, Dogecoin is likely to reach $15.
Dogecoin has the potential to stay on top of the market with its popularity. But the cryptocurrency market is very volatile and the road to new all-time highs will surely be very bumpy. Traders who want to grow their wealth could try Bexplus, where they can use crypto futures to long and short cryptos with 100x leverage. No KYC, no deposit fee, traders can receive the most attentive services, including 24/7 customer support.