Dogecoin was a hit thanks to the meme-stock craze that swept the market last year. From the start of 2021 to its all-time high on May 8, the popular token, designed as a fun competitor to Bitcoin, surged about 12,000 percent. Dogecoin, on the other hand, has lost more than 70% of its value since then.
You might see this as a great opportunity to get some DOGE at a low price. Is Dogecoin, which has a market valuation of $21 billion and is now the 11th most valuable cryptocurrency, a wise investment this year? Let’s have a look. Before we continue, however, you can get Dogecoin using a Visa card at CEX.IO.
Limited Acceptance
Dogecoin, like Bitcoin, is a blockchain that was created purely to serve as a payment network. It employs a proof-of-work consensus process, in which miners earn the right to validate transactions by solving challenging math problems with expensive, high-powered computers. The advantage of Dogecoin over Bitcoin is that transactions are cheaper and faster.
Dogecoin, on the other hand, has almost little utility.
According to the website Cryptwerk, only 1,900 businesses accept it as a form of payment. According to Statista, there are over 213 million businesses in the globe. Dogecoin’s lack of validity as a payment option is demonstrated by this alone.
The National Basketball Association team, Dallas Mavericks, is maybe the most well-known organization that accepts Dogecoin. The token can be used to purchase tickets and items. This isn’t surprising, given that the Mavericks’ owner, billionaire Mark Cuban, is a huge supporter of Dogecoin and cryptocurrency.
In March, AMC Entertainment Holdings, the poster child of the meme-stock frenzy, will take Dogecoin. Elon Musk, the CEO of Tesla, recently announced that Dogecoin could be used to purchase specific items from the electric vehicle manufacturer. These actions appear to be little more than public relations gimmicks.
Because the number of coins is uncapped (there are more than 130 billion DOGE tokens in circulation, with 10,000 more being created every minute), it would require enormous demand to outpace a rapidly growing supply for the coin’s price to rise over time. But aside from being accepted as a payment method purely for fun, there aren’t many uses for Dogecoin. This inevitably limits its upside.
A few developers are also working on advancing the meme crypto, further adding to the bear case. Even its founders, Billy Markus and Jackson Palmer, who started Dogecoin as a joke, stopped working on its development in 2015.
DOGE Price Prediction
For those of you who already missed the moment of the highest rise of Dogecoin price in 2021, you may be wondering, is it too late to buy Dogecoin? To find out the answer, let’s look at the Dogecoin price prediction below.
According to Yahoo Finance.com, some experts have predicted that in mid-2022, the Dogecoin price will rise to USD 1. Some others have even indicated that Dogecoin’s price will reach USD 1.5 within five years.
Based on the technical analysis indicator, currently, Dogecoin is being traded below 200 – day simple moving average. However, a vast development that will occur by 2022 can improve its value in the long term. Overall, DOGE is expected to be able to pump higher by 2022.
Final Words
However, no one knows the actual fate of Dogecoin and several other crypto assets in the market. Dogecoin itself is a crypto asset with quite a high fluctuation level. Its value rose to hundreds of percent and dropped a few days afterwards.
Therefore, before deciding to invest in a crypto asset, you should understand all risks, price movements, and other crucial information. A prediction or opinion of experts is only based on an algorithm that may not be suitable for upcoming conditions.