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Dogecoin: Time to Embrace Payments Prophecy or Risk an Identity Crisis

Last Updated March 30, 2024 1:12 PM
Shraddha Sharma
Last Updated March 30, 2024 1:12 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • DOGE has gained from speculation about its use in X Payments.
  • Dogecoin’s technological foundation can spotlight its unique position.
  • Is the crypto still dependent on Elon Musk’s endorsement or is ready to break free?

Dogecoin, which was once created as a joke, was elevated as ‘people’s currency,’ thanks to Elon Musk’s apparent support. However, it is standing at a critical juncture as it awaits incorporation into mainstream payment systems, including Twitter.

If it does not capitalize on its role in the payments sector, will it face a memecoin identity crisis?

What Will Help Dogecoin?

Recently, Dogecoin co-creator Billy Markus prayed for Bitcoin to reach a $1 million valuation . Whether or not that happens, Dogecoin is far from the $1 pricing milestone.

According  to Rekt Capital, the macro downtrend that pulled the memecoin’s valuation down is finally over. And as March concludes, three events could lift DOGE’s price. Firstly, its potential integration into X’s crypto payments. Secondly, Commodity Futures Trading Commission (CFTC) approval of Coinbase crypto futures. Finally, DOGE would benefit from broader market strength. Recently, a Dogecoin developer thread on Twitter speculated on whether its integration into the X Payment system would take five years or less.

Meanwhile, rumors about DOGE’s potential use in the platform’s payment systems have resurfaced after artificial intelligence chatbot Grok also hinted at Dogecoin payments  on X. Since the official launch of the X Payments account, the Dogecoin community has been hoping for a potential integration, as Musk has been seen as an endorser of the chain.

Coinbase has filed for three new crypto futures with the commodities regulator, with Dogecoin being one of the altcoins listed. With trading anticipated to begin on April 1, the CFTC approval  will be a positive for the memecoin.

And lastly, amid a crypto bull run, Bitcoin could provide market strength to its spinoff. According to IntoTheBlock, Dogecoin whales are actively making large transactions with a 600% increase over the last month.

Lark Davis and Dogecoin

Crypto influencer Lark Davis considers DOGE the “OG memecoin.” He told CCN: “While a lot of memecoins have come and gone over the last few years, DOGE has remained the top dog. My guess is that DOGE will have a great run this cycle. But, if you are chasing the dream of putting $100 into something and then becoming a millionaire, then DOGE is not it.”

Davis added: “At the current market cap it is a monster and trades like a regular big cap coin. For memecoiners looking for the big gains you need to be hunting those low cap memes, ideally under 10 million dollar market cap.”

DOGE’s Technological Backbone

CCN spoke to Sidharth Sogani, founder and CEO of CREBACO – Credit Rating for Exchanges, Blockchains, and Coin Offerings – for his take on Dogecoin.

Sogani explained that Dogecoin stands out for its own blockchain and proof-of-work mechanism, akin to Bitcoin. He explained that while DOGE started as a memecoin, it has fallen out of the category as it has sustained through multiple crypto cycles. CREBACO’s founder also noted Dogecoin’s loyal community that has efficiently maintained the technological backbone. Sogani underscored Dogecoin’s legitimacy and potential beyond its meme origins.

Sogani said, “Value comes from consensus. We believe in the government, that’s why that piece of paper has value. DOGE has now kind of reached a stage, where started as a meme, but because of its fundamentals being strong, it works as one of the altcoins.”

The executive also highlighted that Dogecoin is distinct because of how it operates its own blockchain and has a unique ecosystem, setting it apart from other memecoins, which are often based on Ethereum or, more recently, Solana. He sees a positive future for Dogecoin in the next few months, suggesting it might even approach $1, despite being around $0.20, currently.

However, Sogani also critiques the broader memecoin market as overly speculative and not grounded in real value or fundamentals. He believes that while the market is driven by humor and human interest, it largely lacks a solid foundation, with speculation making up nearly all of its activity.

DOGE Value Hinges on Major Events

Dogecoin’s journey from a lighthearted meme to an altcoin player has called for market attention. Its current value is closely tied to speculative interest, particularly around potential use in X Payments and apparent endorsements from public figures like Elon Musk.

However, its future hinges on more than just celebrity support. Factors such as its integration into mainstream payment systems, regulatory developments such as the CFTC’s stance on crypto futures, and the overall strength of the cryptocurrency market will play crucial roles. If Dogecoin manages to capitalize on these opportunities, a $1 valuation might not be that far away.

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