Strong Dogecoin Price Prediction: Will Dogecoin Price Reach $1 In 2021?
Dogecoin is an altcoin introduced in 2013 and is primarily used on social media platforms like Twitter and Reddit as a tipping system to reward quality content creator and sharers. Usually referred to as “the internet currency,” it is a digital coin that facilitates peer-to-peer digital transactions in a decentralized manner. It is being listed on crypto exchanges like Binance, YoBit, BitAsset and Huobi Global.
Many investors, including Doge owners and public figures, are speculating on whether Dogecoin’s price will ever hit $1. This thought follows the tremendous and unprecedented gains this cryptocurrency has been making since the start of 2021 and following the numerous endorsements from business tycoons, musicians, and other celebrities. Therefore, in this article, we will examine reasons why Dogecoin could hit $1 before the end of 2021 or if it is a far-fetched unrealistic dream.
Reasons why Dogecoin Price will reach $1
1. Fast growing Market CAP:
Introduced in 2013, Dogecoin has quickly grown its own online community, which has reached a market capitalization of US $5.38 billion as of late January 2021. The market cap is fast growing in the sense that in just two months this currency’s CAP is now at $6.90 billion, as of 24 March 2021. This is huge progress for a newly popular cryptocurrency.
Source: livecoinwatch.com
Dogecoin may have started as a joke, but it seems not to be anymore. It has taken another turn since the start of the year and is now 14th in the crypto ranking, according to livecoinwatch.com.
2. Public attention:
Online communities (where items are exchanged for DOGE take place) such as Twitter and Reddit that are often flooded with currency-related information have really helped on the awareness of Dogecoin. As of 2015, the Dogecoin subreddit was at 70,000 people and this number has quadrupled ever since. In January 2021, Reddit users made Dogecoin go over 800% in just 24 hours as a result of the attention they gave this currency making a thousand others see its potential and join the community of users.
Twitter and Reddit are not the only social media platforms whose users have promoted the growth of Dogecoin. In July 2020, for instance, there was a trend on TikTok aiming at increasing Dogecoin’s price to $1. Though this target was not met, the coin’s price spiked up following that trend.
3. Celebrity endorsements:
This is the main point Dogecoin leverages to reach its target price and market capitalization. Since 2014, we have seen celebrities express their interest in joining Dogecoin and endorsing the coin by praising it, which has influenced their millions of followers.
Mark Cuban, for instance, the owner of Dallas Mavericks recently made a prediction that the price of the Dogecoin will in no doubt hit $1 by the end of this year. He equally said his company will be accepting the Doge as a form of payment. He adds that Dallasmavs have so far done more than 20,000 dogecoin in transactions, and his anticipation is that the price of the token will “definitely hit $1” if basketball fans maybe purchased some 6,556,000,000 DOGE worth of his Mavericks tickets and merchandise.
The celebrity love affair with Dogecoin continues with Tesla CEO, Elon Musk, who since April 2019 has been talking about this currency both satirically and seriously. His numerous tweets over the past two years have significantly influenced Dogecoin price and still does.
The American rapper Lil Yachty said some time ago that he would be investing a third of his wealth on Dogecoins. This influenced most of his fans not only to be aware of this coin but also to join the community of investors.
It is not just personalities who endorse, but also companies, or media houses, like The Wall Street Journal that recently posted on Reddit saying, “The cryptocurrency dogecoin was created for laughs, serves no purpose, and is now worth more than Western Union, Under Armour and Xerox Holdings.”
4. It is trending:
On online platforms like Reddit, Twitter, TikTok, hashtags like #DogecoinArmy, #DogecoinToTheMoon, #DogecoinRise, and #DogeToADollar are trending, which is a rare period where we see online communities pressing for the rise of a cryptocurrency. This shows the uniqueness and strength of Doge branding, which is very useful for public adoption. Talking about branding, Doge’s uniqueness is in its logo that has a Shiba Inu dog meme that symbolizes it. Memes are ideas presented as jokes, and while some memes die fast, others last longer. Dogecoin’s meme has been around since 2013, and if it can last that long, what say a meme of a cute dog won’t last longer?
5. Fast and easy transactions:
On online platforms like Reddit, Twitter, TikTok, hashtags like #DogecoinArmy, #DogecoinToTheMoon, #DogecoinRise, and #DogeToADollar are trending, which is a rare period where we see online communities pressing for the rise of a cryptocurrency. This shows the uniqueness and strength of Doge branding, which is very useful for public adoption. Talking about branding, Doge’s uniqueness is in its logo that has a Shiba Inu dog meme that symbolizes it. Memes are ideas presented as jokes, and while some memes die fast, others last longer. Dogecoin’s meme has been around since 2013, and if it can last that long, what say a meme of a cute dog won’t last longer?
6. Bitcoin does not influence Dogecoin:
Bitcoin Price from JAN-MAR 2021 | ycharts.com
Dogecoin Price from JAN-MAR 2021 | ycharts.com
The first and second charts above seek to compare the evolution of Bitcoin Price and Dogecoin from January to March 2021. Dogecoin is an altcoin, and altcoins can easily be influenced by the growth of Bitcoin. This is not the case with Dogecoin. According to the charts, both coins have increased in value after February 14, but this is for different reasons. As for Dogecoin, its growth is mainly due to celebrity endorsements. This shows a somewhat independence (as compared to other altcoins), which will help it hit $1 by the end of 2021. Though since February 24, it has dropped from almost $0.07 to now $0.051, there is a high chance that their growth target is achieved with continuous good marketing strategies.
Reasons why Dogecoin Price will not reach $1
DogeCoin is and will always be a meme. Apart from the hilarity it causes, DogeCoin really has no real use cases and it’s not rare either. Most cryptocurrencies, such as Bitcoin and Litecoin, have been designed as deflationary. There’s a cap limit on how much coin is out there and this creates demand as the supply decreases over time. High demand and low supply can only mean jacked-up prices. Dogecoin, on the other hand, has an almost unlimited supply. There are 128 billion DogeCoins in circulation today and billions more will be minted over the next few years. For comparison, there are 18 million Bitcoin in circulation with only 3 million is left to mine. The fact that Dogecoin is easy to mine, very cheap to buy, plus the sheer volume of available Dogecoin means that demand for this crypto will always be minimal. It’s quite baffling why people expect DogeCoin to become the next Bitcoin. Some argue that Dogecoin can be used to pay for goods or services but that won’t ever happen. It can never turn into real currency as online stores rarely accept it as payment. Why would stores acknowledge DogeCoin when there’s Bitcoin, Ethereum, and Tether – all of which have perceived value.
I'm afraid that at the end of 2021, when the fad blows over, DogeCoin's price will come crashing back down less than 10 US cents. Dogecoin cannot be consistently sustained by just Tiktok videos or tweets by Elon Musk and a few celebrities.
Unfortunately, it does not always take celebrity endorsements for the sustainable growth of a cryptocurrency. So here are the reasons why Dogecoins wouldn’t reach the target of $1 this year. Take a look at the below chart.
One month Dogecoin progress | Source: coindesk.com
The above chart shows the one-month progress of the Dogecoin, that is, from 02/24/2021 to 03/24/2021. As we can see, Dogecoin’s price reached $0.62 at some point on March 14 (at a time when Elon Musk made multiple tweets praising the coin), but as of now (March 24), it has dropped to $0.53 in spite of the numerous celebrity endorsements and public attention it has received this month. Perhaps more marketing will be done to raise the coin’s price and using more celebrities to call the attention of the public on this currency, but the aftermath in this short while shows there is a sustainability problem and something seem to hinder the currency from achieving its fast growth goals. It seems if celebrities stop talking about it for a second, its price will continue to drop.
Dogecoin reaching $1 by 2021 is definitely not easy, yet it's not impossible too. What I learned in the crypto industry is with the proper strategy, things can always be worked out no matter how difficult it may seem. It's even possible that Dogecoin establish $0.005 as the lowest and $0.008 to be the highest trading price. Thus the only thing sure is that dogecoin will rise should traders continue to patronize and buy it. Given how long term investment dogecoin is, this is not difficult to follow.
On February 3rd this year, Elon Musk said on Clubhouse that Dogecoin will become the currency of earth in the future. He equally tweeted the following day about the coin calling it “the people’s crypto” and adding that “no need to be a gigachad to own one.” That same month (as seen in the above chart) Dogecoin’s price dropped from $0.58 to $0.46 before later rising a few days after. So celebrity endorsement is not always a guarantee of the price increase: this a volatile cryptocurrency as any other and predictions can fail. A typical example is the endorsement of celebs like Mia Khalifa who raised a TikTok campaign some time ago to push the price of the currency to $1. This campaign failed.
It takes more than endorsements to increase the value of a brand or in this case, cryptocurrency. They are volatile and can be influence by many other factors such as politics, pandemics, natural or manmade disasters, government policies, the rise or fall of some guru companies, rumors, and so on.
Some cryptocurrency experts like Kadan Stadelmann, chief technology officer at Komodo (a blockchain solutions provider) do not believe Dogecoin might reach $1 as others might think. For him, Doge will have to stop being looked upon as a meme coin if it has to grow in value. For any business to stay relevant and sustainable in business, it has to be solving real social problems that make people identify with it. According to crypto expert Joel Edgerton, chief operation officer of bitFlyer (a cryptocurrency exchange), Doge’s value remains unproven because it is “not solving a real-life problem”: it is more of a fun and games coin that lacks underlying value, and therefore, there might only be speculations on momentum investors because it is not convincing enough for people to be willing to pay for it.
Other experts say Doge’s worth is very little and that “Although Elon Musk, Snoop Dogg, and other celebrities have shown support for it, DOGE climbing to $1 is unrealistic.” For this reason, Kadan Stadelmann, CTO of open-source blockchain provider Komodo adds that amateurs and new people should be cautious of celebrity endorsements and they must fully understand what’s in the back of the hype before investing their monies.
Conclusion
Even though it started as a meme, it has built credibility and reliability of the years, more than other altcoins because of its 2013 debut. The mining environment is friendly and it is fast and has stability. We know that anything crypto is mere speculations, but after reading the above positive points, we can at least have a clue of where Dogecoin will be heading to in the coming months, and it is nowhere other than a $1 hit. We can say with ease that due to its fast adoption rate, especially this year, Dogecoin is most likely to reach $1 this year. You would be on a fruitful path if you are considering investing in DOgecoin.
Monique is a crypto writer, graduated in journalism and translation, a former editorialist in the national press.
