Can Dogecoin Hit $1? Yes, But These Key Changes Must Happen
One of the first cryptocurrencies and one that is well-known for its tremendous volatility is Dogecoin (CRYPTO: DOGE). Dogecoin has taken investors on an incredible ride in 2024. At the moment, it is trading at roughly $0.10, 86% below its all-time high of $0.74, which was attained in May 2021. Can Dogecoin, though, ever hit $1? Sure, but only if two very important things happen.
Dogecoin Boosting Utility
Increasing Dogecoin’s utility is a major element that could propel its price to $1. Currently, 2,594 merchants accept Dogecoin as payment, and it may be used to tip users on Reddit. But this is not remarkable. Fans of Dogecoin are hopeful that the cryptocurrency may be used as tipping money on the social media platform X, particularly because Elon Musk, the platform’s owner, has expressed interest in it.
Dogecoin functions on its own blockchain, which restricts its ecosystem of decentralized apps, in contrast to Shiba Inu. Dogecoin’s growth potential appears limited, with only 21 full-time developers compared to Ethereum’s 2,800 developers. However, if Dogecoin’s use is increased, DOGE’s demand may rise and its price may rise as well.
Reducing Supply
A significant change to Dogecoin’s supply structure may also drive up its price. One of the main reasons that Bitcoin’s market capitalization of around $1.2 trillion can be attributed to its fixed supply cap of 21 million coins.
In contrast, Dogecoin boasts a circulating supply of around 146 billion coins, and 10,000 more are added every minute, for a yearly rise of almost 5 billion coins.
Dogecoin’s price cannot climb due to this continuous supply increase since demand must exceed the growing supply. The price might rise if Dogecoin’s developers implemented a coin-burning mechanism to lower supply. But as of right now, there aren’t any such plans.
Be Realistic
The cryptocurrency market has grown by over 170% since the beginning of 2023, but Dogecoin’s price has only increased by 50%. Even in a bull market, this underperformance is alarming.
Although there is a theoretical way for Dogecoin to reach $1 through supply reduction and increased utility, this seems unlikely to materialize.
Read more: Could Bitcoin Reach $150K Before 2024 Ends?
As such, Dogecoin continues to be an extremely risky investment; prospective buyers might choose to look at other, more promising cryptocurrencies.
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