Cryptocurrency prices slumped at the end of February following the $1.5 billion hack of the Buybit exchange. Dogecoin (Cryptography: Doge) It fell by 17.5% over two days. At the time of writing, it costs around $0.21. To surpass the previous high, we will need to score around 260% over the next 10 months. Even in a world of code-watching eyes, it seems unlikely.
Still, anything is possible, especially with Dogecoin. Popular Meme Coin has fame, strong community and well-known supporters of Elon Musk. These three things have pushed it into the top 10 codes by market capitalization, helping to disrupt critics so badly over the years.
However, without a stronger basic, it is difficult to see how Dogecoin will benefit significantly in 2025 or the long term.
In May 2021, self-proclaimed “Dogefather” Elon Musk is scheduled to appear at a Saturday night live show, causing the Dogecoin community to go wild. Speculation that he might mention a Shibu Inu-themed coin pushed it to a $0.73 high.
Prices began to fall during the show and continued to close at $0.57 the following day. Dogecoin was unable to hold its profits and has yet to come close to its high for the next few years. Bitcoin (Cryptography: BTC) and Ethereum (Encryption: ETH)Meanwhile, both have set new price records since then.
Historically, dogcoins spike when Musk mentions it on social media. But that wasn’t a driver recently, as Musk had been pretty lip-closing about the code for several years.
Nevertheless, Doge won over 70% after President Donald Trump announced the launch of the so-called Office of Government Efficiency (DOGE), a few days after he was tasked with “maximum government efficiency and productivity.”
If you managed to grab the headline, it’s hard to see what you can do if your favorite initiative to Trump isn’t enough to get your name back to $0.73.
It is difficult to find a foothold when analyzing cryptocurrencies. They do not have traditional stock balance sheets or income statements. One source of information is the cryptocurrency “white paper.” This explains investors in detail their vision, how the blockchain works, and how new tokens or coins are produced.
Dogecoin has no white papers as it was created as a joke. Still, in 2021 and 2022, they released “Manifesto” and “Trail Maps” to give purpose to their multi-billion dollar projects.
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Although we have achieved milestones, the manifesto is still worried. “We value usefulness rather than technical brilliance because it is useful.” With Crypto, technical brilliance is not an option. It is very important for security and the ability of merchants to accept zero payments.
Proper Case: At the end of 2024, hackers used a defect in the Dogecoin system to crash 69% of the nodes. Nodes validate transactions on the blockchain and keep them safe. The developers quickly released the upgrade, but it shows that the utility is not worth much if it is not backed up by robust technology.
The value of Dogecoin is directly related to its popularity. Many people have fun cryptography in mind, which has produced many of the other dog and joke-themed digital currencies. Grayscale has filed an application with the Securities and Exchange Commission to launch the Dogecoin Exchange-Traded Fund (ETF). If it is approved, it could provide a big boost in terms of recruitment and reputation.
Nevertheless, fame alone is not enough, and other crypto projects offer more long-term value. Bitcoin, for example, accounts for almost 60% of the total crypto market capitalization. More retailers accept it as a form of payment than any other crypto. And it is the legal currency of two countries.
Ethereum is a top smart contract encryption, so a small piece of self-executing code can run on the blockchain. This means that developers can build decentralized applications (DAPPS), other cryptocurrencies, and inappropriate tokens (NFTs) in their ecosystem. For each transaction, Ethereum pays a small fee.
Ethereum’s blockchain has 5,000 Dapps, accounting for $100 billion in locked value per Dappradar. In recent years, several serious upgrades have been released successfully, with more developer activity than any other cipher.
All cryptocurrencies have risk. However, Bitcoin’s advantages due to market capitalization and Ethereum’s smart contracts give Dogecoin a stronger foundation.
Dogecoin is unlikely to regain its highest height ever this year. Furthermore, investing in Dogecoin with the hopes of significant returns is a very speculative play. Invest only the money you can afford to lose and make sure it is part of a diversified portfolio. That way, if Dogecoin fails, your finances won’t go off track.
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Emma Newberry holds the position of Ethereum. Motley Fools have been working and recommending Bitcoin and Ethereum. Motley Fools have a disclosure policy.
Will Dogecoin recover the highest ever in 2025? Originally published by The Motley Fool
