Is Dogecoin a Good Investment in 2024?

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Contributor, Benzinga
February 26, 2024
Is Dogecoin a Good Investment

Is it too late to invest in Dogecoin? 

With celebrity endorsements ranging from Elon Musk to Snoop Dogg, Dogecoin is one of the most well-known meme coins. The token saw huge gains in 2020 and 2021, making millionaires, but it lost lots of its value in 2022. After the first big rise and fall of Dogecoin behind us, many wonder what 2024 will hold for the token. 

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What Is Dogecoin?

DOGE is a meme coin, based on a picture of a Shiba Inu dog and Comic Sans font. The project was started in 2013 by Billy Markus, who used a fork from the Litecoin chain to create the token. Though it was created in 2013 and had some support in the first few years, the project really took off in 2020.

In 2020 during the Covid-19 lockdowns, the token went viral on TikTok, bringing in new investors. Elon Musk began discussing the token on X in a positive light. These two main factors combined to send the price of DOGE soaring.

How Does Dogecoin Work?

Since DOGE was a fork from the Litecoin chain, it operates similarly to Litecoin and Bitcoin. It uses a proof-of-work consensus mechanism to process transactions on the chain. The project is decentralized, meaning that no single person or entity has control over it. It operates by allowing many users across the world to verify transactions and contribute computing power in exchange for a small reward in DOGE. All transactions are recorded on the blockchain, which is a ledger that stores data and cannot be altered. 

In practice, DOGE is primarily used as a store of value and a way to transact. For example, Musk provided users with the ability to pay for Tesla merchandise with Dogecoin. 

Dogecoin Price History

The price of DOGE remained relatively stagnant for most of the 2010s, with only a few bouts of volatility. However, the price surpassed $0.01 in early 2021, which was followed by a huge spike to all-time highs of nearly $0.74. At the time the market cap was nearing $90 billion. However, the token lost much of its value in the following months as some of the token’s novelty wore off. Within a year, DOGE fell over 80% from all-time highs, settling in around $0.10. While there has been some variation in the past couple of years, the price has stayed relatively close to that mark.

How Did Dogecoin Perform in 2023?

2023 was somewhat tumultuous for DOGE, with periods of heightened volatility, as well as months with relatively low price variation. The price increased by nearly 30% in 2023 because of a strong rally towards the end of 2023, likely correlated with the Bitcoin rally from the hype surrounding spot Bitcoin ETFs

How Much is Dogecoin Right Now?

Though the price of DOGE constantly changes, the price recently has hung around the $0.08 level, with a market cap of around $12 billion. You can see up-to-date price info on DOGE below. 

Dogecoin Price Prediction

If you are looking for a long-term Dogecoin price prediction, take a look at this article, which shows AI price predictions for DOGE through 2030. In it you’ll find answers to questions like how long it could take for DOGE to reach new all-time highs (ATHs) and if now is a good time to buy. 

Where to Buy Dogecoin

If you are interested in buying DOGE, you can access crypto trading platforms that offer the token. Some of the best are Coinbase, Kraken and eToro. You can get started on any of the sites by creating, verifying and funding an account. You can usually begin trading in a couple of business days 

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How to Store Dogecoin Safely

Though centralized exchanges offer several security measures to maintain the safety of your assets, you may be looking for a more secure way to store your funds. Wallets are a great way to add an extra level of security to your assets. While wallets are not needed, they can offer peace of mind. 

Ledger is a hardware wallet that supports DOGE. A hardware wallet is a physical object that holds the private keys to your crypto. Without the physical key, your crypto is inaccessible. This is the most secure way to hold crypto. 

Ledger currently has two models: the Ledger Nano S Plus and the Nano X. The Nano S Plus is a barebones wallet meant for beginners to safely store crypto. The Nano X is for more advanced users, with Bluetooth capabilities and more storage.

Pros and Cons of Investing In Dogecoin

Dogecoin is a unique asset, with pros and cons to consider before investing. 

Pros of Investing In Dogecoin

  • Potential for price increases: Dogecoin can be sensitive to market sentiment, so certain events can lead to large price increases (Musk announces that Tesla will accept DOGE as a form of payment). 
  • Community: The community surrounding DOGE is tight-knit and collaborative. By investing in DOGE, you can gain access to this community. 
  • Exchange presence: Since Dogecoin is a relatively older project, it is listed on nearly all the top crypto exchanges, which can increase the number of potential investors and cause the price to increase. 

Cons of Investing In Dogecoin

  • Unlimited token supply: Other tokens, such as Bitcoin, have a fixed token supply. This effectively limits the amount of tokens in circulation, which can cause the price to increase. DOGE is not this way, as it introduces 5 billion new tokens each year. Continually increasing the supply can cause the price to go down. 
  • Lack of technological developments: Other meme coins, such as Shiba Inu, have development teams that put out new projects to add value to the token. DOGE does not release new projects at the same rate, which may limit the usability of the token. 
  • Volatility: Crypto, and especially DOGE, is known to be volatile. Prices can move several percent each day, and money can be made or lost in seconds. Because of this, DOGE can be risky to invest in. 

Is Dogecoin (DOGE) a Good Long-Term Investment?

Since DOGE, and crypto as a whole, has only experienced a few market cycles, it is hard to tell if it will be a good long-term investment  However, there are a few important ways in which DOGE could be a long-term investment. For instance, if the community continues to push DOGE as a payment option, it could lead to large-scale adoption and increase the price. Another way it could be profitable long-term is if the development team creates new projects that add real value to the token and bring in new users. 

Experts don’t have enough information to make a definitive call of whether or not DOGE will be a good investment. 

What Experts Say on Investing in Dogecoin

The expert opinion on DOGE is divided between bulls and bears. Bulls believe that the project will continue to receive celebrity endorsements, which will bring in new investors, as well as a continuation of the strong community that currently exists. 

Bears say that the token was originally meant to just be a joke and does not provide any real value. Kevin He is the COO of CloudTech Group, a fintech company. He said, ”We believe that cryptocurrencies like Dogecoin, which are completely useless and the value is purely supported by the community, will not gain value in the future.”

DOGE Provides a Fun and Unique Investment Opportunity

Dogecoin is volatile, which can be fun if you are investing with money you are okay with losing. However, it may not be a great idea to put your life savings into such a volatile asset as it could rapidly lose value. If you have looked at the pros and cons of investing, as well as your own investment objectives, DOGE could be a fun way to play around with some extra cash. 

Disclosure: ²Sum of median estimated savings and rewards earned, per user in 2021 across multiple Coinbase programs (excluding sweepstakes). This amount includes fee waivers from Coinbase One (excluding the subscription cost), rewards from Coinbase Card, and staking rewards. ³Crypto rewards is an optional Coinbase offer. Upon purchase of USDC, you will be automatically opted in to rewards. If you’d like to opt out or learn more about rewards, you can click here. The rewards rate is subject to change and can vary by region. Customers will be able to see the latest applicable rates directly within their accounts

Frequently Asked Questions

Q

Will DOGE ever reach $1?

A

DOGE could reach $1 but that would mean its market cap would be nearly $150 billion.

Q

Is Dogecoin really a good investment?

A

Dogecoin could be a good investment if you are willing to handle volatility.

 

Q

Does Dogecoin have a future?

A

Dogecoin’s future depends on several factors, including new projects, community adoption and celebrity endorsement.

 

Q

Is it good to invest in Dogecoin today?

A

If you are able to accept the risks involved, Dogecoin could be a good asset to buy today.

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About Caden Pok

Caden has been involved with cryptocurrency for several years. He began trading and investing in crypto in 2018. Now, we mines multiple coins and holds positions in Cardano and Ethereum. He is very experienced with DeFi technology.