Dogecoin (Cryptography: Doge) It was founded in 2013 by two friends who thought the cryptocurrency industry was taking itself seriously. Inspired by the “Doge” memes that were spreading throughout the Internet at the time, they created Dogecoin as a joke (in their own words).
It rarely became one of the most valuable cryptocurrencies on the planet in 2021. It reached a peak valuation of approximately $90 billion. But it spiraled from there, and by mid-2022 it had lost more than 90% of its value. Unfortunately, Dogecoin has little practical practicality and the speculative enthusiasm never lasts. So it simply couldn’t maintain its momentum.
But after getting injured everything in 2023 and most of 2024, Dogecoin again found its position when Donald Trump won the recent presidential election in November after campaigning on a series of pro-crypto policies. Additionally, his campaign was boosted by longtime Dogecoin supporter Elon Musk.
In fact, the meme token ended with a profit of 251% in 2024, beating other top cryptocurrencies such as Bitcoin, Ethereum and XRP.
DogeCoin price data by YCHARTS
Dogecoin’s recent rally appears to be stagnant for now, with the current price of $0.17 per token down 76% below its 2021 peak. But with the current crypto-friendly administration in the White House, is this the ultimate time to buy dogecoin before it potentially surges to $1?
On the campaign trail, President Trump vowed to make America the code capital of the world. Since taking office, he has finally signed an executive order to establish a strategic Bitcoin sanctuary within the government, in addition to a digital asset stockpile that can hold cryptocurrencies other than Bitcoin.
Additionally, Trump-appointed representatives of the Securities and Exchange Commission have already begun to suspend the agency’s aggressive litigation against crypto giants such as Binance and Coinbase. This is a step towards creating a much more friendly regulatory environment for the crypto industry, arming the freedom to potentially create new use cases to increase the value of investors.
But when President Trump set up an external agency to help reduce wasted spending on the government and appointed Elon Musk to run it, Dogcoin investors received their own special surprise. It is called the Ministry of Government Efficiency, or Doge for short.
Musk has been promoting Dogecoin frequently since 2019 by sharing memes and interacting with other enthusiasts on social media. He took part in a dogcoin-themed skit for a Saturday night live show, May 8, 2021. Simply put, investors realized that Musk had no concrete plans to support his jokes, so they were rushing for the exit – promoting a 90% decline until 2022 I mentioned previously.
The story continues
Last year’s rally at Dogecoin appeared to be driven by the idea that Musk’s involvement in Doge could create value for Meme Token, but it doesn’t show that there is any utility inside the agency.
Dogecoin has two core issues: a lack of adoption and a virtually unlimited supply. According to Cryptwerk, only 2,061 companies around the world are willing to accept tokens as payment for goods and services. Many of them are obscure providers of internet and cryptographic services, and even online gambling websites.
If consumers can’t use Dogecoin in their favorite store, there’s no reason to own it. Without its adoption, the token is worthy of the whims of purely speculative investors, making it virtually impossible to maintain upward momentum over the long term.
In terms of supply, there are 148.5 billion Dogecoin tokens in circulation. That number grows permanently – there is an increasing number of new tokens that can be “mined” each year, but there is no end date. Investors are steadily diluted over more time, making it extremely difficult for Dogecoin to maintain its value. After all, I can’t think of assets with an infinite supply that generates a stable return.
Even Bitcoin has a cap supply of 21 million coins. Its rarity is the main reason why investors consider it a legitimate storage of value.
Image source: Getty Images.
Dogecoin’s latest Rally flapped at $0.47 per token in December. So it’s been a long way from collecting $0.73 from the 2021 high. At the time of this writing, investors may be feeling a sense of deja vu, considering that it has plummeted 64% from its recent peak to trade at $0.17.
Dogecoin’s 2022 Low Point was $0.06, so it’s much closer to that level, let alone a dollar. I don’t think Dogecoin is likely to reach that milestone unless the community comes up with new use cases to promote real value in the long run.
As a result, investors may want to avoid this meme token.
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Anthony di Pizio does not occupy any of the stocks mentioned. Motley Fool has Bitcoin, Coinbase Global, Ethereum and XRP positions, and is recommended. Motley Fools have a disclosure policy.
Do I need to buy DogeCoin for less than $1? Originally published by The Motley Fool
