Dogecoin has received no headline media till May, 2021. While most official trading platform hit unprecedented peaks in Nov 2021, Dogecoin appears to have peaked in the middle of the year and never managed to recover.
So, is Doge Crypto still a good investment option?
Some experts think Dogecoin has the potential to reach highs in the coming years, while others are skeptical. Can DOGE work as a long-term investment in 2022? Read this article to learn more!
What is Dogecoin?
Dogecoin was a virtual parody that grew beyond the founders’ original concept to become one of the top twenty digital currencies today. Following Bitcoin’s success, there was an outburst of all digital currencies, many of which had no utility. More than digital currency, people consider this coin as a meme coin or NFTs.
This prompted two computer programmers, Jack Palmer & Billy Markus, to devise a way to satirize the economy, and Dogecoin was indeed the ideal vehicle. They designed Dogecoin, a cryptocurrency with no versatility and an infinite supply.
Dogecoin (DOGE) is an open-source, peer-to-peer cryptocurrency. It is classified as an altcoin. Dogecoin was introduced in December 2013 and featured a Shiba dog as its emblem. While it appears to have been created as a prank, Dogecoin’s cryptocurrency has merit. It was created by using the same technology of Litecoin. Dogecoin, which uses the script algorithm, is notable for its low price and limitless supply.
Meme Coin and the Fall in the value of Dogecoin
Over the last year, the Dogecoin value is currently in free fall. In fact, since reaching its all-time high in initial May 2021, Dogecoin has been steadily declining. Indeed, Dogecoin has lost more than 80% of its value since the ATH. Why is the value of Dogecoin dropping at such a rapid pace?
- Several factors have been identified by crypto analysts as the primary reason for the Dogecoin price drop. The lowering hype of meme coins is one of these variables. Dogecoin was one of the initial meme coins that hit the market, and the price of this coin was dropped suddenly as meme-coin prices have been falling in recent months.
- The most significant limitation of meme coins such as Dogecoin is their lack of utility. As a result, they are less appealing in the market. As a result, Dogecoin has experienced negative growth in recent weeks.
- Another factor contributing to Dogecoin’s decline is the huge number of marketing investors. It has been recognized as the major reason for Dogecoin’s decline. The percentage of Dogecoin purchasers is rapidly declining, and what’s more concerning is the substantial percentage of Dogecoin whales sales.
Will Dogecoin rise back again?
Numerous crypto investors were skeptical of DOGE when it was appeared in 2013. Moreover, due to the BTC craze, overall market surge, and support from influential shareholders such as Elon Musk, this sentiment began to change rapidly in 2019 and 2020.
- It’s challenging to say, however, that most experts remain bullish on Dogecoin in the long run. Indeed, some predict that Doge will achieve $2 by 2035.
- However, the current market may take a few months to stabilize. And there is reason to be cautious in the coming months. DOGE is holding steady around $0.06 after peaking at $0.17 in 2022. In that time, it has lost more than half of its value. Dogecoin backer Elon Musk is preoccupied with other matters, like the Twitter conquest, and he is no longer a supporter of this coin.
- Dogecoin is currently the world’s tenth largest cryptocurrency by market capitalization. More than over 132 billion Dogecoins are in circulation. It also has more market cover than Litecoin and Ethereum.
Dogecoin is an excellent investment option, mainly if you use Bitcoin pro. Here, you can find different types of coins and you can diversify your portfolio. Regardless of the recent crypto market crash, Elon Musk has stated that he will continue to support Dogecoin. This is significant since he’s one of the primary reasons for boosting the price of this coin and if he continues with his support then you can get the best returns from this crypto. It’s a compelling reason to consider Dogecoin as a crypto investment in 2022.