It’s been a couple of years now, but I’m sure we all remember the original meme crypto: Dogecoin.
While the token was founded in 2013, it didn’t really take off until 2020 and into 2021 when it soared to all-time highs. Since then Dogecoin has fallen alongside the rest of the crypto markets, leaving crypto traders asking: “will Dogecoin explode again?”
In theory, Dogecoin could rise again, but nobody knows what the future holds for the crypto industry, especially for altcoins like Dogecoin. While it doesn’t have much in the way of real-world use cases, Dogecoin remains as a top ten crypto by market capitalization and has one of the strongest communities in the industry.
Dogecoin has already seen life-changing gains over the past few years, and given that it has a current market cap of about $9 billion, it seems unlikely that we see another substantial move higher in the near-term. Still, if you’re willing to take a chance on holding it for the long-term, there’s a chance that Doge will steadily rise in the future.
And by the way, while I have you – THIS IS NOT FINANCIAL ADVICE AND I AM NOT AN EXPERT! Is Dogecoin a good investment, I have absolutely no idea, but yes, I invest in it because I do think it it will rise in price during the next bull market, but I very likely could be wrong, so please do your own research before making any decisions on this.
Will Dogecoin Explode?
If you’re asking yourself this question, it’s safe to say you aren’t the only one!
Dogecoin enjoyed a historic run in 2021 as the meme coin went surging to an all-time high price of $0.74 per token. While that rally was short-lived, Doge has managed to remain with a substantial market cap and remains a top ten project in the space.
Much of its appeal to investors is that Doge just does not take itself very seriously. It was started in 2013 as a joke and quickly gained a massive following. The real catalyst for Doge’s explosion in 2021 was the backing of Tesla CEO Elon Musk, who calls Doge his favorite cryptocurrency. Musk likes Doge and its community so much that Tesla even accepts Dogecoin at its online store.
So will Dogecoin explode again? Given the current market environment of the crypto industry I wouldn’t bet on Dogecoin exploding anytime soon. If ever.
With that being said, all it takes is one Elon Musk tweet to send the price of the token soaring again. Don’t count out Doge because it’s one crypto that is always on the verge of another rally. But as I stated earlier, nobody, and I mean nobody knows for sure.
How High Could Dogecoin Realistically Go?
These price target questions are always tough to answer. On one hand, cryptos like Dogecoin and Shiba Inu Token have already gained so much in the past couple of years. For them to truly take the next step higher, there would need to be a significant decrease in the circulating supply of tokens.
There is a total of 132 billion Doge in circulation right now, so if the price of the token hit say $1.00, then the market cap would be $132 billion. While that math adds up, it means Doge would almost have the same market cap as Ethereum, and be twice as valuable as the third highest crypto market cap which is USDT Tether.
Sure, Doge hit $0.74 in 2021, but that was at the height of the bull market.
I’m not saying it can’t reach that price again, but just because an asset hit a price level before it doesn’t always mean it will again. We see this all the time with stocks so if you’re holding Dogecoin and anticipating it gets back to $0.74, you might be disappointed to hear it might never reach those levels again.
Could Dogecoin Ever Reach $100?
Remember what I said about those tricky crypto price targets? Imagine a world where Dogecoin is worth $100 per token. At that point, Bitcoin would probably have to be worth over $1 million, and the total crypto market cap would be unimaginable. While $1.00 is at least still a “reasonable” price target, $100 seems both impossible and unrealistic.
There is another way for Dogecoin to explode higher: burning a lot of its circulating supply. One way to directly impact the price is to lower the supply of the asset.
Unfortunately for Doge investors there isn’t really a burning mechanism for the project as of yet. It’s why compared to a deflationary token like Shiba Inu, Dogecoin is considered an inflationary token because the supply will continue to rise higher as time goes on.
So I’m sorry to be the bearer of bad news, but Dogecoin will likely never reach $100 per token. It could very well return to its all-time highs if another crypto bull market arrives.
With companies like Tesla and AMC accepting it as payment, Doge does at least have some utility. Still, its Proof of Work consensus mechanism is falling out of favor with miners for its high energy usage and costs. Investors should worry first about it getting back to $0.10 per Doge, before ever having hopes for ever getting near $1 let alone $100.
Conclusion: Will Dogecoin Explode and Rise Again?
As I always say: never say never in the crypto world. Another bull market could help Dogecoin increase in value, but will it explode and reach past heights? Well I don’t know personally, my guess as a non-expert would be no, but of course I could be wrong.
At the same time, with supporters like Elon Musk, Doge certainly has one of the strongest communities in crypto space. With that being said, Doge has a serious lack of utility aside from being a meme coin, and it probably needs the perfect storm of things to happen to ever return to its all-time high price of $0.74.
But again, these are just my thoughts – I could be wrong! So please, do your own research before making any decisions and don’t take my word as financial advice.