Who let the Dog(e)s out?
From a popular Dog Meme, Dogecoin uptrend momentum looks like it's ready to outshine even the most popular Cryptos in the market!
2020 was good for cryptocurrencies. While the rest of the global economy soaked, most cryptocurrencies (apart from Bitcoin-BTC) like Dogecoin (Doge) have increased very rapidly!
But before we dive into all the numbers and forecasts let us introduce you to the world's famous Dog!
Using a popular dog meme, software engineers Billy Markus from IBM and Jackson Palmer from Adobe launched Dogecoin in 2013. The use of Dogecoin has evolved beyond a fun meme on social media and is now being accepted by some online stores for payment as well as a tipping service for posts or contributions that they believe deserve recognition. It's similar to a "like" but with more impact.
The main thing that makes Dogecoin stand out from other cryptos is that it is an inflationary, rather than deflationary cryptocurrency (i.e.: there is no maximum limit to the number of coins in circulation) which allows it to more closely mimic real-world currency.
Despite the fact that the coin started as a joke to satirize the proliferating dubious crypto coins now it ranks 10th globally with its current price standing at a current price of $0.05 and a market cap. at $7.33bn (as of 17/03/2021).
What might be driving the price of Doge?
1. Celebrity Influence
Cryptocurrencies have experienced big growth over the past years and Dogecoin is one of them who have shown quite significant increase. In fact, its popularity was mainly driven from social media and A-list celebrities.
Namely, Elon Musk's tweets have affected the price movement to a large extent, thus boosting investors' confidence. In addition, Gene Simmons said he would be buying the currency as well as Rapper Lil Yachty claimed he will invest an amount of his wealth on the coin. Finally, Mia Khalifa's TikTok campaign pushed the price of Dogecoin upwards to $1, which then failed and the price fell again. Therefore, if celebrities continue with this "passion" for dogecoin, then it could possibly drive the coin's price to new highs.
2. Government Regulations
Nigeria, the second-biggest bitcoin market in the world, has banned the use of cryptocurrencies, while Indian government is also considering banning cryptocurrencies.
3. Bank Regulations & other financial factors
JPMorgan, Citi, and Goldman Sachs aim to establish crypto custody, while MasterCard is set to unveil a platform that will allow merchants to receive cryptocurrency payments. Visa has also published similar plans.
Dogecoin is up approximately by 900% since January 2021 with trading volumes exceeding those of Bitcoin (BTC). This is predicted to continue through the second quarter.
According to Tradingbeasts Doge's predictions hover around $0.0595023 in April, with a minimum price around $0.0509205, while the maximum is expected to reach $0.0748831.
In June, the price is expected to reach $0.0754225 and is expected to hover around $0.0608258 towards the end of the month. Similarly, the site expects dogecoin to reach $0.0766733 in July, with a minimum forecast at $0.0521378.
The Dogecoin bullish movement is expected to continue in Q3.
Further forecasts expect the cryptocurrency to trade at $0.0613386 at the beginning of July and end at $0.0619104 and then in two months' time to increase to a high of $0.781554.
A bull trend is expected to continue until December, with prices to reach a high of $0.079470 in October, $0.0798154 in November and finally to reach $0.087006 towards the end of 2021.
Dogecoin is expected to stay strong and head towards its first $1 mark at the beginning of 2022.
TradingBeasts predict that Dogecoin's price will surpass $0.081 in January 2022 and eventually hit its all-time high in February at $0.0826640. The bullish movement is expected to continue throughout the year with the cryptocurrency to likely reach $0.0941731 at a maximum price.
Overall the generally bullish sentiment surrounding cryptocurrencies will keep pushing the prices up, thus leading investors to invest in Dogecoin, pushing prices even higher. According to similar outlooks, Dogecoin will enter 2023 at $0.0954633 and trade at a minimum of $0.0649150, and further to reach $0.1096323 and finally close the year at $0.0745500.
Dogecoin price is expected to be bullish all through up to 2025, mostly due to its popularity among users, it is expected to stay around those levels. As per Wallet Investor and other sources see the coins price to rise to $0.0184 by 2025 and skyrocket to $0.05096 at the beginning of 2026.
Coinswitch takes a longer-term view on Dogecoins future and puts the price at an average price of $0.238451 in 2028.
With all these rapid changes around the world and the global economy, no one knows what the future holds. As Doge hangs out in the spotlight, will analysts' predictions come true, or will something unexpected send Doge's price to soar?