The future of Dogecoin, the joke token that became serious business, is up in the air right now. There have been calls for the blockchain, which exploded out of nowhere in the bull run of 2021, to change the way it operates.
Marshall Hayner, the CEO of DeFi banking platform Metallicus, floated the idea of a Proof-of-Stake (PoS) version of DOGE on Twitter. This change would see people selected to verify Dogecoin transactions based on how much DOGE they held.
While nothing might come of the idea in the immediate future, it is worth noting that the Dogecoin Foundation has suggested using a form of PoS before.
Dogecoin did not immediately respond to a request for comment.
But what is Dogecoin (DOGE)? How does Dogecoin work? Let’s see what we can find out, and also take a look at some of the Dogecoin Price Predictions that were being made as of August 22 2023.
Let’s examine some of the Dogecoin price predictions being made on August 22 2023. It is crucial to bear in mind that price forecasts, particularly for a potentially volatile asset like cryptocurrency, often turn out to be inaccurate. Additionally, please remember that many long-term crypto price predictions are generated using algorithms, which means they can change at any time.
First, CoinCodex had a pretty gloomy short-term Dogecoin price prediction. The site said DOGE would drop to $0.0626 by August 27 before continuing its decline to $0.0551 by 21 September. The site’s technical analysis was, unsurprisingly, bearish, with 23 indicators sending negative signals and just eight making bullish ones.
Moving on, DigitalCoinPrice said that Dogecoin would trade at $0.22 in two years time. PricePrediction.net said that it would reach $0.20. CaptainAltCoin said it would be worth $0.092 in two years time.
Looking at a more long-term Dogecoin price prediction, PricePrediction.net said it would trade at $1.30 in 2030. DigitalCoinPrice said it would get to $0.64 that year. CaptainAltCoin, on the other hand, had a DOGE price prediction that would not have gone down well with the coin’s fanbase. It said it would become a worthless de facto deadcoin by the start of the next decade.
The price of DOGE has been in a downtrend since October 31 last year. This has seen its price drop saw it fall about 65% between then and June 10. At the time of writing, the price is close to where it was in June and it could, potentially, fall further.
If we look at the trend line falling from DOGE’s May 2021 all-time high, we can see the price has struggled to rise above the line since June last year.
There is some good news, though. The Relative Strength Index indicator suggests that DOGE is pretty much oversold, which means we we could soon see an upturn.
That said, it could just as likely be that it will fall before it rises, potentially going as low as $0.055. Once that happens, though, we could see a recovery that would take it above $0.10.
Now, let’s examine some of the highlights and lowlights of the Dogecoin price history . While we should never take past performance as an indicator of future results, knowing what the coin has achieved can provide us with some very useful context if we want to make or interpret a Dogecoin price prediction.
When Dogecoin first came out in late 2013, it was worth about $0.0001 and it remained well under the cent – albeit with a brief foray above $0.01 around the time of the crypto bubble of late 2017 and early 2018 – for most of its first seven years or so.
This all changed during the crypto bull run of early 2021, when its price skyrocketed and what had been one of crypto’s many also-rans turned into one of the biggest coins going, reaching an all-time high of $0.7376 on May 8 that year.
Things then fell apart when Tesla boss and alleged Dogecoin enthusiast Elon Musk called the crypto a “hustle” on top American TV show the exact same day. His comments were exacerbated by an overall market downturn and DOGE closed the year at $0.1673.
2022 was a poor year for crypto and DOGE was unable to enjoy the same sort of success it had in 2021. Following the collapse of the LUNA cryptocurrency in May 2022, it has, with the exception of a brief period in late October and early November last year, remained under the $0.10 mark. On December 31, it was worth $0.06816. This meant it had lost nearly 60% of its value over the course of 2022. However, it had performed slightly better than the overall crypto market, which dropped nearly 65% over the same period.
DOGE started 2023 well. It broke past $0.10 for the first time since December 2022 in April, but things soon went downward. The news that the United States Securities and Exchange Commission (SEC) was suing the Binance and Coinbase exchanges hit DOGE, which fell to $0.05854 on June 10. This coincided with Crypto.com suspending its American institutional operations.
There was a recovery over the following weeks. On July 25, it hit $0.08334, only to collapse to about $0.0629 on August 22.
At that time, there were nearly 140.7 billion DOGE in circulation, representing the total supply. This gave the coin a market cap of around $8.85 billion, making it the eighth-largest crypto by that metric.
It is hard to say. The coin that was the poster child of the 2021 boom has struggled as the market has sunk. Whether a change to a Proof-of-Stake consensus mechanism will help things remains to be seen. Remember that when Ethereum (ETH) moved to PoS, overall economic conditions meant the change barely had an impact. One would hope that, if DOGE undergoes its own Merge, things will be better for it.
On the other hand, DOGE does have a rather enthusiastic fan base. Whether the foundation behind the coin can really capitalize on that and deliver more uses for Dogecoin is another matter. If it does, things might look good.
Something that DOGE does need to work out is whether or not Elon Musk’s association with the coin is a good thing or not. Keep in mind that the self-proclaimed Dogefather damaged the coin’s reputation when he appeared on American TV and called it a “hustle”.
As ever with crypto, you will need to make sure you do your own research before deciding whether or not to invest in DOGE.
No one can really tell right now. Most of the DOGE price predictions are positive, even if CaptainAltCoin thinks it will cease to be worth anything by 2030. On the other hand, price forecasts are very often wrong. Keep in mind, too, that prices can, and do, go down as well as up.
Before you decide whether or not to invest in Dogecoin, you will have to do your own research, not only on DOGE, but on other, similar, coins and tokens such as Shiba Inu (SHIB) and Litecoin (LTC). Either way, you will also need to make sure that you never invest more money than you can afford to lose.
Let’s now take a look and find out what Dogecoin actually is.
Dogecoin was set up in 2013 by Australian software engineers Billy Markus and Jackson Palmer. Initially created as a parody of crypto, it uses similar software to Bitcoin (BTC). It really started to gain traction in late 2020 when a series of popular TikTok videos helped promote it.
It was around this time that Musk, who had previously seemed comparatively ambivalent about crypto, started calling himself the Dogefather. In turn, this got the billionaire a, perhaps unearned, reputation as a kind of crypto prophet.
At present, Dogecoin uses a Proof-of-Work consensus mechanism. This means that people verify transactions and add blocks to the blockchain by solving a series of increasingly complex mathematical equations.
DOGE rewards the Dogecoin blockchain’s miners. It can also pay for some things in the real world. People can buy, sell, and trade it on exchanges.
On 22 August 2023, there were nearly 140.7 billion DOGE in circulation, representing the total supply.
It might do, but not for some time yet. PricePrediction.net thinks it will break the dollar in 2030 and DigitalCoinPrice says it will reach that level two years later. Keep in mind, though, that the highest DOGE has ever traded at is $0.7376, which it reached in May 2021.
DOGE rewards miners on the Dogecoin blockchain. People can buy, sell, and trade it on exchanges.
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Please note that the contents of this article are not financial or investing advice. The information provided in this article is the author’s opinion only and should not be considered as offering trading or investing recommendations. We do not make any warranties about the completeness, reliability and accuracy of this information. The cryptocurrency market suffers from high volatility and occasional arbitrary movements. Any investor, trader, or regular crypto users should research multiple viewpoints and be familiar with all local regulations before committing to an investment.