Dogecoin (DOGE) Price Prediction 2022

Dogecoin is a cryptocurrency that started out as an entertaining joke, but has since seen massive gains and losses. The coin dates back to 2013, when it was first developed by software engineers Jackson Palmer and Billy Marcus.

The pair named their room after a comical misspelling of the word “dog” used in memes surrounding pictures of Shiba Inu dogs. Despite the joke status, the coin reached an all-time high of $0.74 in May 2021. There are many questions about its future value. Can dogecoin reach $1000 by 2025? Will Dogecoin crash? Here is an overview of how the price can move.

The current state of Dogecoin

As of May 19, 2022, dogecoin was at $0.08571. This is a far cry from its all-time high as the coin saw a steep drop below $0.20 in June 2021. Although there were minor rallies along the way, the price continued to drop throughout. long of 2022.

Despite the decline, dogecoin can still be considered a success story. The coin only crossed the cent mark for the first time in January 2021, years after its introduction. Anyone who bought then was still up over 700% on their initial investment as of May 12, 2022. Those who bought then and sold at the top gained over 7000%. The coin traded below $0.01 for years, so some could have made even bigger profits.

Dogecoin was still the 10th largest cryptocurrency by market capitalization at $11.357 billion as of May 19. 24-hour trading volumes are still high, showing that many people are still buying and selling dogecoin today.

Factors that may affect the Dogecoin price prediction for 2022

One of the most important things to know about dogecoin is its entanglement with Tesla CEO Elon Musk. Dogecoin’s price action has a habit of following Musk’s contribution on Twitter, with major upside leading to the all-time high corresponding to his stated support for the coin.

Similarly, a significant price drop occurred during Musk’s May 2021 appearance on the comedy sketch show “Saturday Night Live.” When Musk made a seemingly satirical comment referring to dogecoin as a “hustle,” the price began to fall from $0.65 to $0.416.

Some traders believe the link between Musk and dogecoin is stronger than ever, as early reports of its pending acquisition from Twitter have caused minor spikes in the coin’s price. This trend continued with a major spike on April 25, 2022, when Twitter accepted Musk’s offer to acquire the company. However, Musk tweeted on May 13 that the deal was on hold and the process has been rocky ever since. What ultimately happens with Musk’s acquisition of Twitter could still have an effect on the price of dogecoin.

Dogecoin saw a considerable drop in its Twitter-correlated peaks, losing around half of its value between April 26 and May 12. This happened as cryptocurrencies across the board crashed and lost significant value, and may not specifically reflect dogecoin.

The use case for Dogecoin

Dogecoin is different from bitcoin and many other cryptocurrencies in several ways. For one, there is no limit to the number of dogecoins that can be produced. Bitcoin has such a cap, which plays a role in its widespread use as a speculative investment.

Dogecoin is intended to be less of an investment opportunity and more of a real currency. The coin was originally used to reward users on social media and other platforms. The practical use of dogecoin as a currency could limit its potential growth as a speculative investment, but could also provide it with stability.

Dogecoin Price Predictions

Cryptocurrency markets are volatile and difficult to predict, with the turbulence of May 2022 being a key example. However, some still have an optimistic view of dogecoin and other cryptocurrencies.

One such bullish prediction comes from well-known cryptocurrency advocate Roger Ver. Ver is well known for its public support for a wide range of cryptocurrencies, including dogecoin. He gave an overview of his dogecoin prospects after Elon Musk’s deal with Twitter.

Ver placed dogecoin among its top three competitors for emerging dominant cryptocurrencies, alongside litecoin and bitcoin cash. He specifically pointed to the advantage of dogecoin in terms of transaction costs and reliability as the reason why he favors the currency.

What if Dogecoin Becomes a Dominant Cryptocurrency?

Dogecoin is already a major contender as the 10th largest cryptocurrency by market capitalization as of May 19. However, its market capitalization of $11 billion is much lower than that of the current dominant cryptocurrency, bitcoin, at over $575 billion. Bitcoin represents 44.97% of the current crypto market, followed by Ethereum at 18.98%. So how much could dogecoin be worth if it became a mainstream cryptocurrency?

If dogecoin really became a mainstream cryptocurrency and matched the market capitalization of Ethereum, it would have a price of around $1.76. If it were to overtake bitcoin, it could have a price of $4.12 or more.

These prices show a potential for growth but are also a sign of the limit that could be located. Can dogecoin reach $100? Probably not. Can Dogecoin reach $10 this year? Also unlikely. What will dogecoin be worth by 2023? It’s hard to say.

In a world where dogecoin becomes a top cryptocurrency, investors could see today’s investment increase by 5,000%.

What if Dogecoin crashes completely?

Of course, not all cryptocurrencies are success stories. A recent example shows how badly things can go for once successful cryptocurrencies. Between May 5 and May 12, issues with the stablecoin terra caused the associated cryptocurrency LUNA to plummet from $83 to virtually nothing. Its all-time high was $119.18.

This example shows that with cryptocurrencies no one can tell how low the bottom will be. Despite the positive dogecoin price predictions from some, there is still a risk that prices will fall.

Last takeaway

Many investors have profited from investing in Dogecoin, but its future – and the future of all cryptocurrencies – remains uncertain. Although there may be more gains on the horizon, any investor should evaluate cryptocurrencies very carefully and invest with caution.

Information is accurate as of May 19, 2022.

This article originally appeared on Dogecoin (DOGE) Price Prediction 2022

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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