Dogecoin is a key element of this year’s “Meme Investing” trend. In less than a year, Dogecoin has surpassed $11,000 in value. International attention has been drawn to crypto Twitter and other online sub-communities because of prominent celebrity endorsements and their popularity. If the Bitcoin price falls below $1, it will be destroyed.
Its current market worth exceeds $50 billion, surpassing some of the greatest publicly listed firms. In 2013, one Dogecoin was worth $0.0002. In August 2021, the same coin will cost $0.35, making it the seventh most popular cryptocurrency. In May 2021, it hit a record high of $0.7376, aided by none other than Elon Musk himself.
So, what does this value for investors, and what does this currency’s future hold? If you’re thinking about buying Dogecoin in the second half of 2021, keep reading.Now, after so many years, digital wallets has made its way towards the world’s most trusted online investment platforms.
First, we’ll look into Dogecoin’s volatility. A bad year for Bitcoin is an understatement. The currency jumped from $0.0056 to $0.07 in February, $0.40 in April, and $0.73 in May, a 75% increase.
Dogecoin is intrinsically volatile, thus the wild swings. This makes it almost three times more volatile than Bitcoin (based on historical fluctuations).
Dogecoin is a highly volatile asset with poor fundamentals compared to other “big size” cryptocurrencies. Alternatively, most people acquire currency to benefit from price swings. The market and public opinion decide its value since few use it.
After all, the payment system was established as a spoof on the era’s frantic Bitcoin speculation.
Investing In Dogecoin
Since the start of the year, the price of Dogecoin has increased by over 5,500 percent. Despite a recent decline, its value has increased at a quick pace.
On the other hand, Dogecoin’s fundamentals are no longer in line with its price. Despite the fact that it is a growing market, it lacks distinction. Achieving long-term success would need Dogecoin to compete with more established rivals like Bitcoin and Ethereum.
That does not kill out the chance of making money using Dogecoin. Despite this, it still exhibits daily volatility ranging from 20 percent to 30 percent. If it reaches $1, it isn’t going to be a good long-term investment. Dogecoin is a cryptocurrency that is basically worthless to its holders. The value of a cryptocurrency might vary at any time. If you don’t sell at the right moment, you might end up losing money.
Considering Dogecoin’s price drivers.
Dogecoin might reach $1. The all-time high was $0.70 per DOGE. Can Dogecoin reach $1? That depends on its market value and mining activity.Dogecoin’s market value needs to hit $130 billion to reach $1. Positively, this amount is not out of reach if Bitcoin and the cryptocurrency industry as a whole continue on their current path.
The DOGE market cap v/s new supply sets the price. New block mining pays 10,000 DOGE per minute. Dogecoin is made every year.
In light of the coin’s history of conjecture and excitement, its potential to reach $1 will be determined by various of variables, including:
The Doge community
We cannot emphasize the value of our Dogecoin community, which is almost like an ecstatic cult of Dogecoin devotees. Doge ecosystem veterans have long lauded the dog meme currency to trolls, skeptics, and Fodders alike. While it may be amusing to make fun of the Doge community, it is essential to Doge’s success that all of its unsung community heroes donate online if it is to reach $1 before the end of the year.
Media publicity and public sentiment
Last but not least, in order for Doge to reach $1, it is imperative that public sentiment is maintained and that media coverage is good. Aside from the fact that many media outlets ridicule Dogecoin as just a parody coin, it’s really good for Dogecoin since it attracts new investors who see it as a viable alternative to other digital money.
As a result of Musk’s “dogecoin could be my favorite cryptocurrency” tweet, the Doge community was ecstatic. Since then, celebrities like rapper Snoop Dogg, entrepreneur Mark Cuban, and even rock legend Gene Simmons have come out in support of Doge. These high-profile endorsements gave Dogecoin much-needed respectability, resulting in billions of dollars in new investments.