Will Dogecoin Reclaim Its All-Time High in 2025?
Cryptocurrency prices slumped at the end of February following the $1.5 billion hack of the Bybit exchange. Dogecoin (CRYPTO: DOGE) fell 17.5% in two days. At the time of this writing, its price hovers around $0.21. It would need to gain around 260% in the next 10 months to get above its previous high. Even in the dizzying world of crypto, that seems unlikely.
Still, anything is possible, especially with Dogecoin. The popular meme coin has fame, a strong community, and a well-known backer in Elon Musk. Those three things have pushed it into the top 10 cryptos by market cap and helped it to doggedly confound its critics for years.
However, without stronger fundamentals, it is hard to see how Dogecoin will post significant gains in 2025 or the longer term.
Dogecoin would need to gain 260% to reclaim its all-time high
In May of 2021, Elon Musk, the self-proclaimed "Dogefather," was due to appear on Saturday Night Live , and the Dogecoin community was in a frenzy. Speculation that he might mention the Shibu Inu-themed coin pushed it to a high of $0.73.
The price started to fall during the show and continued to drop, closing at $0.57 the following day. Dogecoin couldn't hold on to its gains and has yet to approach that high in subsequent years. Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) , on the other hand, have both set new price records since then.
Historically, Dogecoin spikes when Musk mentions it on social media. However, that's been less of a driver recently, as Musk was fairly tight-lipped about crypto for a few years.
Nonetheless, Doge gained over 70% in the days following President Donald Trump's announcement of the launch of the so-called Department of Government Efficiency (DOGE), tasked with "maximiz[ing] governmental efficiency and productivity."
If having a headline-grabbing, Trump-favored initiative share your name hasn't been enough to get Dogecoin back to $0.73, it's hard to see what could.
Dogecoin's fundamentals
It can be difficult to find a foothold when analyzing cryptocurrencies. They don't have the balance sheets or profit and loss statements of traditional stocks. One key source of information is the cryptocurrency's "white paper," which tells investors more about its vision, how its blockchain works, and how new tokens or coins will be produced.
Dogecoin doesn't have a white paper because it was created as a joke. Still, in 2021 and 2022, it released a "manifesto" and "trailmap," attempting to give the multibillion-dollar project a purpose.
While it has achieved some milestones, the manifesto is still worrying. It says, "Being useful, we value utility over technical brilliance." Technical brilliance isn't optional in crypto. It's crucial for security and for merchants' ability to accept Dogecoin payments.
A case in point: At the end of 2024, a hacker used a flaw in the Dogecoin system to crash 69% of its nodes. Nodes validate transactions on a blockchain and keep it secure. Developers quickly released an upgrade, but it shows that utility isn't worth much if it isn't backed up by robust technology.
Look for cryptocurrencies with stronger foundations
Dogecoin's value is directly related to its popularity. Many have taken the fun crypto to heart, and it's spawned a host of other dog- and joke-themed digital currencies. Grayscale has also filed an application with the Securities and Exchange Commission to launch a Dogecoin exchange-traded fund (ETF). If it's approved, that would likely provide a significant boost in terms of adoption and reputation.
Nonetheless, fame alone isn't enough, and other crypto projects offer more long-term value. For example, Bitcoin accounts for almost 60% of the total crypto market cap. More retailers accept it as a form of payment than any other crypto. And it's legal tender in two countries.
Ethereum is a top smart-contract crypto, so small pieces of self-executing code can run on its blockchain. This means developers can build decentralized applications (dApps), other cryptocurrencies, and non-fungible tokens (NFTs) on its ecosystem. For each transaction, a small fee is paid in Ethereum.
Ethereum's blockchain has 5,000 dApps, accounting for $100 billion in locked value, per DappRadar. It's successfully released several serious upgrades in recent years and has more developer activity than any other crypto.
All cryptocurrencies carry risk. However, Bitcoin's dominance by market cap and Ethereum's smart contracts give them stronger foundations than Dogecoin.
Going higher?
Dogecoin is unlikely to reclaim its all-time high this year, if ever. Moreover, investing in Dogecoin in the hope of significant gains is a highly speculative play. Invest only money you can afford to lose, and make sure it's part of a diversified portfolio. That way, if Dogecoin does fail, it won't derail your finances.
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