Today, the topic I will discuss is about the king of "Meme Coin" that everyone in the Crypto world is always listening to, Dogecoin (DOGE). Will Dogecoin reach $1 by the end of this year? Should you invest in DOGE?
Dogecoin started as a joke coin. However, in 2021, it skyrocketed due to tweets from celebrities like Elon Musk, with some even claiming it reached the moon.
Looking at the current situation, DOGE's price is still below $0.15. However, there is an interesting point to note.
Dogecoin's Daily Active Addresses have reached their highest in the last three months. This indicates that people are becoming interested in DOGE again, and there is a resurgence of activity in the network.
So what would it take to reach $1?
To go from $0.15 to $1, it needs to rise more than six times. Looking at DOGE's Supply Heavy Token Model, this is a challenging journey. Unlike Bitcoin, which has a capped total supply, new coins are continuously being minted every year, putting constant pressure on the price.
If it reaches $1, Dogecoin's Market Cap could exceed $120 billion, which is quite substantial in the crypto world. For it to rise that high, it would require people like Elon Musk to promote it as they did in 2021 or a significant 'Meme Hype' to occur.
However, Dogecoin has jumped unexpectedly several times throughout history. Why? Because it is a coin that moves more on narratives than on concrete fundamentals.
If the entire crypto market experiences a sudden strong Bull Run, well-known coins like Dogecoin tend to participate quickly. At that point, reaching $1 could be possible.
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So is it wise to invest in DOGE?
This question is a perennial one. My answer is
"Every investment has its 'Do Your Own Research', which is the 'Home Work' you've done for your financial future."
Don't see DOGE as 'Gambling'. Dogecoin is extremely volatile. You can make significant profits in one day and lose everything the next. Therefore, only invest what you can afford to lose. For example, you might say to a friend, 'I'll buy DOGE with this money for your wedding gift; if you're lucky, it'll be enough for a house; if not, at least you'll get a dozen eggs.' It's a joke, but don't actually do it.
Also, don't forget about Diversification. Your investment portfolio should primarily consist of strong foundational coins like Bitcoin and Ethereum. Meme Coins like Dogecoin should be placed in the "High-Risk, High-Reward" category.
Dogecoin has been making efforts to enhance its Real-world Utility recently. For example, Tesla has started accepting DOGE for some purchases. If DOGE becomes more widely used, it could provide long-term support for its price.
In short, as of this moment, it's 'challenging but not impossible' for Dogecoin to reach $1 by the end of this year.
The entire crypto market will gain momentum; the increase in Active Addresses will create significant buying pressure. If a prominent figure promotes DOGE again, we might see a return of the 'Moon' journey. Even if it doesn't reach $1, it can rise from the current $0.15 to around $0.20 - $0.30 with good results and end this year positively.
I want to encourage every investor to carefully evaluate their goals and acceptable risks before making a decision. As the name 'Meme Coin' suggests, investments can become entertainment, so I conclude this article with a reminder to be cautious.
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