Dogecoin has arguably been enjoying tremendous attention this year in the crypto community and among crypto enthusiasts. The meme-originated coin has accumulated a market capitalization of more than $40 billion, helping it rise to the 6th position among the several cryptocurrencies on the planet.
But why is Dogecoin so appealing, and why the sudden surge in the price? Is it a good investment to consider, and what is the future like for Dogecoin? In this post, we have highlighted some things you need to know about Dogecoin, as well as predictions about its price for the coming years. So, read on to know Dogecoin price prediction before you consider buying Dogecoin in Europe.
What is Dogecoin (DOGE)?
Dogecoin was created in 2013 out of a popular meme. The currency was created by software engineers Jackson Palmer and Billy Markus with the goal of creating something that would make payment more fun. Just like Bitcoin and Ethereum, Dogecoin also runs on blockchain technology. However, the coin is not as versatile in use as the two leading crypto coins. Dogecoin has no real purpose aside from being a sensationalized gag.
There are presently about 129 billion DOGE coins in existence and has no supply cap. This is another thing that sets it apart from popular cryptos like Bitcoin and Ethereum.
How is Dogecoin Mined?
The mining process of Dogecoin is different in many ways from that of Bitcoin, which uses the Proof-of-Work protocol. One of the differences is that Dogecoin uses Scrypt technology as its mining protocol and has a block time of 1 minute. That means there is no limit to the number of the coin that can be mined.
Miners can mine the coin on Windows, Linux, or Mac and with a GPU. Howbeit, Dogecoin has the same mining processes as Litecoin since the coin is a hardfork of Litecoin.
Dogecoin Price History; a Look into Its Past Performance
Before we go into the price prediction of Dogecoin for the coming years, it will be good to first take a look at how the digital currency has performed in the past. In 2013 when the coin first hit the crypto market, it was sold for a very low price – around $0.0002 and $0.003. At that time, the coin was usually given as a free reward on social platforms like Reddit, Facebook, and Twitter. When a user posts good content on these platforms, they would be rewarded or tipped with Dogecoin. But in 2014, things began to gather up momentum in favor of Dogecoin.
In 2014, Dogecoin’s trading volume increased by more than 8 times in a couple of weeks, and the price rose from $0.0003 to $0.0018. This was driven by the fundraising campaign raised for the Jamaican Bobsled Team to be able to participate in the Sochi Winter Olympics.
2015 and 2016 weren’t that remarkable for Dogecoin, and so there wasn’t much improvement in price. The coin was priced between $0.0002 and $0.0003 at the time. But in 2017, during the crypto bubble, Dogecoin tremendously grew in value, soaring from $0.001 to $0.012, and this price remained stagnant even till the end of 2020.
However, towards the end of 2020, Dogecoin price began to gain some steam at the time Bitcoin was also touching new highs. And in January 2021, Dogecoin price chart enjoyed a great time as the month ended with Dogecoin price at $0.037.
In April 2021, in just a few days, Dogecoin experienced about a 693% rise in price. But in June 2021, the price fell again by 22%, and in July, the price further slumped by 18%. However, after a couple of tweets from the Tesla CEO Elon Musk, Dogecoin made some gains in price again.
Today, as of the time of writing this post, the price of Dogecoin is $0.24. Compared with its closing price in 2020, this is still a remarkable improvement for Dogecoin. Furthermore, there has been a bullish kind of prediction about the coin towards the end of the year and in the later years. Experts’ predictions are mostly pointing to the fact that traders and investors should expect abrupt changes in Dogecoin market even as Bitcoin’s price rally continues.
Dogecoin Price Prediction; What the Future of the Coin Looks Like
It will be good to look at the predictions from various experts in the industry to know what the future holds for Dogecoin. Below are some price predictions for Dogecoin.
According to this giant body in the crypto world, Dogecoin seems to be having so much movement again this year. They predict that there is likely going to be volatility in the few months that are left in this year, which will significantly affect Dogecoin’s price and make it settle at around $0.025 at the end of 2021.
Still looking at the price prediction of Dogecoin. The technical analysis by DigitalCoin predicts that the price might settle at $0.432 at the end of the year. They also predict that the coming year, 2022, will likely witness the rise of Dogecoin whales as large crypto investors jump on the bandwagon.
The analysis from CryptoGround is a bit more bullish as it predicts that Dogecoin might reach $0.2485 in November and $0.3047 by April 2022. In a year, the price will be $0.4039 and might reach $0.07046 in 2026.
The prediction from Wallet Investor is also bullish for the next 4 months for Dogecoin. They predict that the coin would likely experience a relentless increase over the next few months. As Bitcoin begins to rise to reclaim the market, Dogecoin would also likely follow the trend reaching $0.476 by mid of 2022. And in the next 5 years, the coin might reach $1.438 against all odds.
Kadan Stadelmann is a blockchain developer and the Chief Technology Officer of the Komodo platform. He said in his predictions that he didn’t see DOGE going over $1 any time soon, except there is a high level of some Bitcoin-level buy-ins.
Johnny Lyu, Chief Executive Officer at the KuCoin exchange, was more bullish in his prediction than Stadelmann. He said he expects that very soon, people would start accepting DOGE in restaurants, hotels, and movie theatres. However, he stated that despite Dogecoin’s high potential, the digital currency might not climb to higher rankings in the next few years. But if the platform maintains its present advantages over BTC and some other cryptos, the journey might be faster than earlier thought.
Is Dogecoin A Good Investment In 2021?
Even though the coin is not likely to experience another 10,000% increase, there is still room for more growth this year. If it continues to receive the support of celebrities, it might still reach another all-time high in price, making it a good investment anyone should consider this year.
So if you are looking to jump on the wagon and invest in Dogecoin, it is never too late.