By Micah Carnahan
The cryptocurrency market as a whole remains mired in a deep correction that began to earnest last November. Dogecoin (DOGE) has been unable to escape this downward trend, experiencing more than a 50% decline in the period since. With war now raging in Ukraine and inflation ravaging the pocketbooks of savers in the US, it seems like the “people’s currency,” as Elon Musk famously dubbed the protocol, is the only thing still dropping in a sea of rising consumer prices.
While, as we head into an uncertain spring, a number of questions are again being asked by enthusiastic investors still looking at the potential of this once-coveted crypto-favorite: What can we expect for Dogecoin’s price moving forward? Why, despite its currently falling price, has Dogecoin persisted where other memecoins have failed? And what current developments are helping to further the adoption of the original dog-themed cryptocurrency?
Dogecoin price prediction
Despite its recent decline, Dogecoin remains an incredibly popular project. In fact, the coin is the third most-held cryptocurrency by American investors. While its price may or may not have bottomed just yet, many believe 2022 can bring decent gains to investors still eyeing that DOGE in the window.
Financial comparison website, Finder, consistently gathers projections made by its experts on the subject of Dogecoin’s future. Asking the opinions of over 15 experts on a rotating schedule, the sentiment of those surveyed is recorded weekly in a regularly updated forecast.
According to the panel, Dogecoin is set to rise by roughly 16.5%, settling around $0.16 by the end of the year. Looking further ahead, Finder’s experts predict Dogecoin to gain steadily over the next 8 years, reaching a high of $0.54 by 2030.
The collapse of the memecoin
While Dogecoin has fallen sharply in past months, many so-called memecoins have fared just as bad, or worse. Other popular dog-themed cryptocurrencies, like Shiba Inu (SHIB), have similarly disappointed their hoodlers this year.
Memecoins are, of course, notoriously speculative. The appearance of so many of these joke-based currencies in the crypto market was recently mocked by Billy Markus, co-founder of Dogecoin, as being “…made by people trying to get rich off of other people trying to get rich.” ” Without any utility, the base of support these memecoins enjoy at their onset, often diminishes with time.
In contrast, Dogecoin has largely kept its investor base intact and even added a few businesses to the list of companies accepting cryptocurrency as payment. AMC Theaters, for example, recently announced its acceptance of the coin. With no signs of a diminishing base insight, the potential for Dogecoin to increase its utility now lies front and center before a growing investor class.
The rise of Dogecoin’s utility
At its heart, Dogecoin is a peer-to-peer currency, much like Bitcoin, and is primarily used to make fast, low cost transactions. Without a need to rely on second layer technologies, Dogecoin may even hold a key advantage over its larger market counterparts.
A few developments may have also helped renew interest in Dogecoin recently. A roadmap, referred to as the Trailmap by developers, has now been released to the public. The Trailmap outlines a series of features to be realized in the near future, including the coin’s transition toward a proof-of-stake consensus mechanism.
Whether Dogecoin can transcend its memecoin moniker and be taken more seriously for its utility is yet to be seen. With the continued involvement of well-respected developers like Vitalik Buterin, that possibility has clearly been placed before us.
While the future remains stubbornly far from certain, should the development schedule unfold as proposed in the Dogecoin Trailmap, that DOGE in the window will almost certainly be worth more than it’s being sold for today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.