As the year 2025 draws to a close, Dogecoin (DOGE) is facing a peculiar situation. The reason is that on one hand, the number of daily users on the Dogecoin network has reached its highest level in three months, indicating that the entire network is actively functioning. However, on the other hand, the price has been stuck below $0.15, having fallen about 82% from the peak price set in 2021. Despite the price not rising, the increasing network usage has led investors to wonder, 'Could Dogecoin reach $1 by the end of the year?'
Analysis on Dogecoin
Based on current figures, it seems impossible for Dogecoin to reach $1 before the end of 2025. For the price to rise from around $0.13 to $1, it would need to increase by over 630% within a matter of days. If it were to reach $1, the value of Dogecoin would exceed $150 billion, making it comparable to top global companies. Given the current market situation, expecting such a large influx of money within days seems overly optimistic.
Reasons for network usage
However, one might ask why the network users are increasing. The answer lies in the rise of new tokens known as DRC-20, similar to how BRC-20 became popular in Bitcoin. The system for recording images and texts on Dogecoin has led to an increase in trading volume. However, these transactions are not high-value currency transfers but rather small-volume trades, which do not create significant buying pressure to push prices up.
Whales' movements
Another point of concern is the movement of large wallets known as whales. According to on-chain data, these whales have remained noticeably quiet over the past week, not making any significant purchases or sales, and seem to be in a wait-and-see mode. Because of this, the leading players in the market are finding it difficult to break through the resistance at $0.15, resulting in sideways price movement.
Mixed politics
A peculiar issue for 2025 is the mix with politics. The emergence of a new department called the Department of Government Efficiency (D.O.G.E) in the U.S. government has complicated the market. Since this department is associated with Elon Musk and shares a similar name with Dogecoin, it becomes difficult to distinguish in the news whether they are referring to the crypto or the government department. This does not provide the same advantage to the market as before, and the political complications may drive some investors away.
Structure of Dogecoin
Moreover, the structure of Dogecoin is also a factor that complicates price increases. The reason is that while Bitcoin has a cap, Dogecoin is an inflationary currency that releases about 5 billion new Dogecoins into the market each year, which means to prevent price drops, it requires massive buying pressure. Therefore, to reach $1, there will need to be an enormous amount of buying pressure that can overcome the unlimited selling pressure.
A usable currency
However, as a good out of the bad, in terms of technological advancements, the Dogecoin Foundation is working on a project called 'RadioDoge'. This allows for payments with Dogecoin in remote areas without internet access through Starlink satellites, which can be seen as a significant step in transforming Dogecoin from a meme into a real currency that is useful in everyday life.
Additionally, in terms of economics, the organization known as 'House of Doge' is trying to get listed on the NASDAQ stock market, while also creating payment systems called 'Dogebox' for merchants. These developments are strengthening the ecosystem of Dogecoin, and they may pave the way for large organizations to enter and invest in the long term. Therefore, although the price hasnât increased, it can be said that the foundational structure has already traveled quite a distance.
Elon Musk and X
The connection between Elon Musk and X, where a single post can cause significant fluctuations in Dogecoin's price, is also intriguing. This is because not long ago, Musk denied the existence of X Money, and although this denial caused a slight market stir, licenses for X Payments are still being applied for, so the hope remains.
$1 is just wishful thinking
In conclusion, when analyzing, the idea that it will reach $1 by the end of the year seems increasingly like wishful thinking, especially as it is facing market uncertainties in the short term, making profit generation challenging. However, expectations for X Payments and technological advancements still hold potential for 2026, so if investing in DOGE, short-term traders should stay away, while long-term holders willing to take risks may find it to be an asset that can be accumulated during price dips.
