Imagine it is May 08, 2015, and what if a time traveller comes to you and says to purchase some Dogecoins right now and keep it for 6 years till the exact date arrives again?
On May 08, 2015, Dogecoin was trading at around $0.00009 per coin, and on May 08, 2021, it was trading at around $0.69 a token. That means a 766,666.6% increase in 6 years!
However, on May 08, 2021, the day Dogecoin touched an all-time high, it fell down as much as 30%. Weird right? If you had entered and exited at the right “time”, you would have gained huge returns from this long-term investment.
Is it too late to invest in Dogecoin? What will happen to $DOGE after the next 6 years, in 2030? At the moment, we don’t have any time travellers with us to help, and we should delve into practical means to predict what will happen.
In this article, we will study the curious case of Dogecoin, what made it rise, what made it fall, and eventually try to forecast what will happen to it in the long term. Let’s begin.
What is Dogecoin?
Before we talk about the core things, let us get into the basic details of Dogecoin. As a memecoin based on the famous Japanese dog Shiba Inu, it was initially launched to spoof Bitcoin and the creator was named Shibetoshi Nakamoto as a tribute to Satoshi Nakamoto, BTC’s pseudonymous creator.
Dogecoin was launched on December 6, 2013, and attracted investors from the beginning stages itself. It has its own blockchain and the token ticker is $DOGE.
The $DOGE Coin Details
The DOGE is trading now for $0.1391 per coin. It gained around 3.5% this past week, and the 30-day data shows an increase of 27%. However, the coin is inflationary, and the supply will increase over time. That’s why crypto analysts predict a slow growth for the coin in the absence of virality. Here are some of the basic details of Dogecoin:
| Token Ticker | $DOGE |
| Contract | 0xba2ae424d960c26247dd6c32edc70b295c744c43 |
| Circulating Supply | 146.51 Billion DOGE |
| Market Cap | 20.33 Billion Dollars |
What Caused Dogecoin’s 2021 Surge?
- Memecoin Identity: 2021 was a time when the meme coins started getting huge popularity. Dogecoin’s identity as a meme helped it to gain attention around the web3 space. Also, other meme coins like Shiba Inu, Floki, and Pepe got enormous popularity.
- Elon Musk: Elon Musk acted like an ultimate KOL and influencer for the Dogecoin. He was even named as the “Dogefather”. He constantly tweeted about Doge, significantly increasing the market cap. He bought a Shiba Inu and even bought some coins for his youngest son.
- Social Media Hype: Various Dogecoin communities were formed around the social media. They created memes and other viral content, attracting millions of members. The communities became strong and the number of retail investors increased.
- Mainstream Media Exposure: After Elon Musk, various celebrities endorsed meme coins, and the coin got a slot in mainstream media. It drew large-scale investors outside the blockchain environment and became a sensation across all countries.
- FOMO: Various investors got high returns and with all the hype around the media, people tried to get into it as soon as possible, creating panic and FOMO (Fear of Missing Out).
What Caused the Downfall of Dogecoin?
There are various reasons for the downfall of Dogecoin and the primary cause is Elon Musk’s appearance in SNL (Saturday Night Live). When the news about Elon Musk’s appearance in SNL spread, investors flocked into $DOGE, expecting him to say something positive about the coin.
However, Elon Musk called Dogecoin a “hustle” in the show, and it resulted in sudden panic and sell-offs. Also, the whole crypto market was expecting a correction at the time. All these factors lead to the downfall.
Will Dogecoin Rise Again? The Present Condition
- Memecoin Identity: Hundreds of meme coins are now available in the cryptocurrency market to purchase. New meme coins are getting more traction than Doge. And memes related to cats are more popular than dogs.
- Elon Musk: Elon Musk is busy with his SpaceX missions to reach Mars and the campaigns to help Donald Trump win the upcoming US presidential election. He reduced his Dogecoin tweets and in fact, his Doge memes lost the capacity to create a huge pump in the charts.
- Social Media Hype: The old Dogecoin communities are not very active now. All of them are behind various other meme coins. No viral posts, no creative memes, zero hype, and no significant story to create any trends.
- Mainstream Media Exposure: Dogecoin lost its slot in the mainstream media. It is not an interesting content for them, and the celebrities are not talking about it.
- FOMO: There is no FOMO. Beyond the occasional small-scale pump & dump, there is not even a single important movement in the charts. Nobody is attracted to it except some hardcore believers of it. The on-chain activity is low. However, it is getting some investors as a part of the larger memecoin market situation. Some are investing in it to diversify their portfolio.
Is $DOGE a Good Investment for the Long Term?
Doge still has the potential to create another uptrend. But the growth will be very slow. It desperately needs a new kind of narrative to create an awareness of its presence. Back in 2021, the traders expected it to reach $1 per coin, and it was a major marketing story for the community.
Also, there were speculations in 2021 about Elon Musk using Dogecoin as a payment system. Neither he used it as a payment currency nor did it reach $1. But similar hopes can bring investors again, like what’s happening with some other meme coins.
If it happens, just invest some money you can afford to lose, and wait for someone to bring an organised narrative to push the price further. However, the memecoin niche is more volatile than other cryptocurrencies and you should invest with caution. DYOR!
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