Is Dogecoin Dead? Exploring the Cryptocurrency’s Fate

The bearish turn of the market has led to some cryptocurrency projects being relegated to the back of the market. Back in 2021, the value of several meme coins skyrocketed, but the bubble eventually burst and since then, all of these meme coins including Dogecoin have fallen significantly. Can Dogecoin be considered dead, why has it lost its value and should it be taken into account for long-term investment? To learn more about Dogecoin’s rise and fall and future perspectives, read in our overview below.

Is Dogecoin Really Dead?

The cryptocurrency market has experienced downward trends in 2022 and 2023. Dogecoin has been no exception. This coin, created as a meme joke, reached an all-time high in May 2021 when its price amounted to $0.731578. But its success turned out to be a short-lived adventure. Due to many upheavals in the cryptocurrency and other factors, Dogecoin started losing its value. Crypto investors changed the direction of their investment decisions in favor of other cryptocurrencies on the market.

As of this writing (August 10, 2023), Dogecoin still has an impressive market capitalization of $10.6 billion and a community of loyalists who believe it can grow again. So it would be wrong to say that Dogecoin is dead.

History of Dogecoin

Dogecoin began trading in December 2013 at a meager price. Initially, it had a relatively small market capitalization and was mainly used for tips and charitable donations in online communities.

Dogecoin experienced a significant price spike in 2017, reaching around $0.017 in early January 2018. This surge was driven by increased interest in cryptocurrencies and speculation.

Dogecoin first appeared on the largest cryptocurrency exchange Binance in July 2019. At the start of trading, the value of one coin was $0.00449.

In July 2020, a flash mob began in TikTok to popularize Dogecoin. However, serious price growth did not follow.

In February 2021, Dogecoin hit a new high price of $0.08 following a series of Twitter posts by Elon Musk. DOGE reached its all-time high of $0.738 on May 8, 2021, but despite the expectations of Dogecoin holders, the coin failed to reach the $1 price.

Exactly one year after reaching its historic high, on May 12, 2022, the price of the “meme” cryptocurrency fell to $0.0689, thus it returned to the level from which it began a short, but beautiful rise.

In February 2023, the price of the meme cryptocurrency reacted with growth to Musk’s series of tweets. On April 3, the DOGE rate jumped by 25% at the moment, exceeding the level of $0.1. This happened against the backdrop of the social network’s logo change to a dog of the Shiba Inu breed, which is the coin’s mascot. Later, Musk returned the bluebird meme cryptocurrency reacted with a drop of 8%. It can be said that the value of DOGE has remained virtually unchanged since the beginning of 2023, (the current rate as of August 10, 2023, is $0.07551) while the overall cryptocurrency market has risen by more than 35%. This begs the question for all investors: has Dogecoin lost its shine and how will it finish the year?

The Rise and Fall of Dogecoin

After its initial launch in 2013, Dogecoin didn’t see much success until 2017, when its price rose 4000% from $0.00022 to $0.0091. However, late 2021 saw the biggest price rally since Elon Musk gained attention on social media. This led many crypto enthusiasts to discuss whether Dogecoin could reach $1. All this speculation led to DOGE hitting its all-time high of $0.738 in May 2021, before suffering a major setback in 2022.

The year 2023 saw a flurry of new meme coins, each seeking to outshine the others by offering more attractive yields. Cryptocurrencies such as Pepe Coin (PEPE) and Big Eyes Coin (BIG) quickly posted triple-digit gains, bringing joy to their lucky holders. DOGE in turn does not offer enough potential for express profits in a highly volatile cryptocurrency market. This is exactly how DOGE found itself behind in 2023.

Factors Behind Dogecoin’s Decline

You may be wondering what caused the fall of Dogecoin. And why its price has not yet recovered? Let’s take a look at some of the main reasons for that:

• Bad technology

The creators of Dogecoin, Marcus, and Palmer, had already left the community years ago due to “toxicity”. Since then, Dogecoin’s technology has been maintained mainly by a community of volunteers. 

• Robinhood’s major sell-offs

One of the main factors that led to the growth of the Dogecoin market, was the fact that it was added to Robinhood, a popular shopping app. However, over time after Elon Musk joked about the coin, investors started dumping their Dogecoin on Robinhood, which led to a massive sell-off of the app, and the price instantly plummeted. 

• Limitless supply

Another essential reason why Dogecoin eventually fell is that its supply is unlimited, meaning that an unlimited number of coins can enter the market. 

• The rise and fall of other meme coins

After Dogecoin, some other meme coins entered the market and since then, all of these coins have also fallen. Thus, the overall outlook for meme coins is not very optimistic. Nevertheless, DOGE has managed to maintain its popularity among investors looking for lucrative returns, mainly due to the support of famous personalities such as Elon Musk.

The Dogecoin Community and Miners Get Their Strength up

Despite the underwhelming performance in 2023, DOGE’s stability cannot be denied. The DOGE community remains loyal and responsive, as evidenced by its active presence on social media platforms, where users proudly show their unwavering support for the cryptocurrency.

Some of the significant companies accepting Dogecoin as payment include Crypto Emporium, AMC Theatres, Tesla, Newegg, AirBaltic, Microsoft, Twitch, and many others. On July 2, Elon Musk confirmed that he would eat a Happy Meal from McDonald’s in live regime if the fast food giant accepted Dogecoin. However, Musk’s latest tweet mentioning DOGE on July 17 did not result in a significant move. Given the above historical precedents, participants in the crypto community have begun to speculate that the Twitter owner does not have the former influence over the coin.

Currently, miners control about 3.2% of the total amount of DOGE in circulation. Therefore, strategic investors can look to them for trading clues. Notably, miners took a bullish stance in the last weeks of July 2023. Between July 6 and July 18, they added 50 million DOGE to their holdings, indicating their positive sentiment. Since the trading activity of miners has a gradual impact on the price dynamics, their actions could push Dogecoin upwards, towards $0.08. In case of a fall below $0.06, the initiative will go to the bears.

The Market Situation in 2023

In the spring of 2022, the so-called crypto winter began in the cryptocurrency market, i.e. a period of prolonged decline in the capitalization of assets and reduced investor interest against the background of growing financial risks in the world. However, in early 2023, the trend reversed: the total capitalization of the global cryptocurrency market exceeded $1 trillion by January 24 after a substantial fall below $860 billion in November 2022. Over the past six months, many factors have emerged, saying that the market has reached the condition for further growth.

Such factors include:

• The market’s resilience despite regulatory pressure;
• Prospects of Bitcoin halving;
• The active development of the industry;
• Prospects of launching spot Bitcoin ETFs;
• The growth of investment in the market and many others.

Experts agree that Bitcoin will remain the leading cryptocurrency in the world, and even the second most capitalized cryptocurrency, Ethereum, will not be able to dislodge it due to differences in purpose. The value of altcoins in 2023 will remain volatile and could decline significantly. By all means, Dogecoin is part of the same climate and not immune to market downturns. But will Dogecoin recover once the bull run begins? Well, of course, it can.

Potential Catalysts for the Dogecoin’s Revival

Elon Musk’s favorite cryptocurrency Dogecoin (DOGE) is currently under pressure in the market. However, it has a good chance of crossing the $1 mark within some time. Here are a few factors that could have a positive impact on its value:

• Elon Musk’s advocacy

Elon Musk reaffirmed his support for the Dogecoin cryptocurrency despite the ongoing market correction as per Bloomberg. According to Musk, Tesla will continue to sell goods for Dogecoin and soon SpaceX will follow suit.

• The growing interest of large players

Investments from large financial institutions can increase the value of the meme coin.

• Increasing user base

When around 340,000 new individuals bought the coin in the spring, it set the stage for a rapid rise in the coin’s value. Also, its introduction as a means of payment, made by the movie theater chain AMC Entertainment, is helping to popularize it.

• Favorable regulators

The introduction of DOGE as a public payment instrument and the support of officials is an essential factor in the success of the project. Loyal countries already include Malta, Switzerland, Portugal, Singapore, Canada, Slovenia, Japan, the Netherlands, Germany, Estonia, and El Salvador.

• New technologies

Continuous updates to the coin’s technology and functionality will contribute to the interest and popularization of the coin.

FAQ

Why is there speculation about Dogecoin’s demise?

Is Dogecoin dead today? There is no unambiguous answer to this question. DOGE is currently the 7th largest cryptocurrency with a market capitalization of $10.6 billion, ahead of the Cardano and Solana. But the coin`s lack of utility and high inflation remains a concern for investors. Dogecoin’s unlimited supply jeopardizes its growth potential. Their number of coins in circulation has already surpassed 140 billion and as per expert estimations, it will double in 20 years. This explains why 1 DOGE costs less than a US dollar today.

What are the factors contributing to Dogecoin’s survival?

Below are some of the key factors affecting Dogecoin:

• Celebrity endorsements

Notably, celebrities such as rapper Snoop Dogg, KISS rock band leader Gene Simmons, and Tesla CEO Elon Musk have all voiced their support for Dogecoin. In May 2023, Binance chief Changpeng Zhao said that the Twitter owner had “prolonged the life” of Dogecoin, which could have “disappeared a long time ago”.

• Market sentiment

Like any other asset, Dogecoin’s price is affected by market sentiment. If investors are optimistic about Dogecoin’s future, they may buy more, driving the price up. Conversely, if they are bearish about the cryptocurrency, they may sell their holdings, leading to a decrease in its value.

Is Dogecoin worth buying in 2023?

The cryptocurrency market as a whole is expected to see some positive curves in 2023, significantly if global economic conditions improve. When this happens, Dogecoin can also certainly ride a small wave along with the market. According to some analytical agencies, Dogecoin’s price could reach an average of $0.1099 by the end of 2023, with a maximum price of $0.12.

Disclaimer: Please keep in mind that the content of this article is not financial or investing advice. The information provided is the author’s opinion only and should not be considered as direct recommendations for trading or investment. Any article reader or website visitor should consider multiple viewpoints and become familiar with all local regulations before cryptocurrency investment. We do not make any warranties about reliability and accuracy of this information.