Back in 2021, a number of meme coins soared in value, including tokens such as Floki Inu and Shiba Inu. However, the roots of the crypto meme coin culture can be traced back to the king of meme coins, Dogecoin (DOGE). Unfortunately, the bubble finally ended up bursting in, and since then, all of these meme coins, including Dogecoin have gone significantly down.
Over the last few months, investors have been questioning, is Dogecoin dead for good? Or is there still some room for price appreciation in 2023 considering the fact that its price has become relatively stagnant? In this guide, we will try to provide a straightforward answer.
Is Dogecoin Really Dead? Here’s What We Think
When it first appeared in the market, Dogecoin was no less than a joke for many cryptocurrency investors. However, it soon started to gain the attention of crypto enthusiasts and highly influential people such as Elon Musk.
After first launching in 2013, Dogecoin did not see much push until 2017, when its price increased by 4000% from $ 0.00022 to $ 0.0091. However, it went on its biggest price rally later in 2021 after receiving strong social media attention from Elon Musk. This led to many crypto enthusiasts discussing whether Dogecoin can reach $1. All of this speculation led to DOGE marking its all-time high at $0.738 before taking a big hit later in 2022.
At the time of this writing, Dogecoin still has an impressive market cap of $11,323,174,907 and a strong community of loyalists who believe that it can rise again. So, it would be wrong to say that Dogecoin is entirely dead. Although, it is certainly very low from the all-time high.
5 Deadly Reasons for Dogecoin’s Downfall
You might be wondering, what really caused Dogecoin’s downfall. And why has its price not recovered still? After all, people were massively bullish about this coin in the second quarter of 2021. Let us look at some of the major reasons for the downfall of Dogecoin.
The creators of Dogecoin, Markus and Palmer had already stepped off from the community many years ago due to the “toxicity.” Since then, Dogecoin’s technology has been maintained primarily by a community of volunteers. Considering that, Dogecoin does not have a strong underlying technology with much utility for the investors. Perhaps, all that Dogecoin can do is send payments faster than Bitcoin, but that is also something that many other altcoins are capable of.
Major Robinhood Selloffs
One of the major factors that led to Dogecoin’s market rising was the fact that it was added to Robinhood, a popular trading application. However, after Elon Musk joked about the coin being nothing more than “a hustle” on a “Saturday Night Live” episode, investors started dumping their Dogecoins on Robinhood. This resulted in a massive selloff on the app, and the price plummeted in no time.
Another major reason why Dogecoin ended up dying and the price never recovered is that it has a limitless supply. In comparison, other major coins like Bitcoin have long-term scarcity, which adds to their value. For instance, there can only ever be 21 million bitcoin in circulation. On the other hand, Dogecoin has no cap on the supply, which means that a limitless number of Dogecoin can enter the market.
The Rise and Fall of other Memecoins
By 2022, the crypto community already had major doubts about whether meme coins have a future at all. After Dogecoin, a number of other meme coins entered the market, and all of these coins are also down since. So, the general outlook of meme coins is not a very positive one.
Some people refer to Shiba Inu (SHIB) as the Dogecoin killer. However, the truth is that Shiba Inu never actually truly lived up to its hype. This meme coin spiked to a price of $0.00008 in late 2021 and went lower to $0.00001 in the second quarter of 2022.
A number of other meme coins flushed the market as they tried to push Dogecoin to the edge by offering use cases and utility. For instance, Floki Inu (FLOKI) offered NFTs and use cases in crypto-gaming and the metaverse. Similarly, Roboape ($RBA) focused heavily on an NFT marketplace and on building a community.
Regardless of that, Dogecoin still remains a popular memecoin. But the rise of other meme coins (with some claiming to offer actual use cases) did certainly affect the overall outlook of Dogecoin.
The Crypto Market is Still Down
Lastly, one major reason why Dogecoin’s price has not recovered is due to the fact that the overall cryptocurrency market is down. For instance, blue-chip currencies and major coins such as Bitcoin, Ethereum, and Litecoin have all taken some hit.
The bearish market is not only limited to cryptocurrencies but also extends to related markets such as NFT projects. Of course, Dogecoin being a part of the same climate is not immune to the market’s downturns. But will Dogecoin recover once the bull run comes? Well, it certainly can.
Will Dogecoin Recover? A Glimpse into Dogecoin’s 2023
As of now, Dogecoin does not have any real use cases other than online tipping. It will require the implementation of more utility for its value to rise. Other than that, there have been speculations that it might get incorporated into Twitter by Elon Musk. If that happens, a larger number of investors will FOMO into Dogecoin, which can send its price near its all-time high once again.
But other than that, it is not likely for other major corporations to incorporate Dogecoin due to the fact that it is a meme coin. Overall, whether Dogecoin will recover in 2023 or not is purely based on speculations. It also depends on the overall state of the cryptocurrency market.
So, can Dogecoin recover in 2023? Well, it certainly can. But the general consensus is that it is not likely for Dogecoin to ever reach its all-time high again. For most investors, it is a meme coin and a thing of its past. Still, it is impressive how Dogecoin continues to foster a community of loyalists who believe in its future potential.
Should I Buy Dogecoin in 2023?
Considering the state of the overall crypto market, all cryptocurrencies are relatively down right now with high bearish sentiments. It is expected that in 2023, the overall cryptocurrency market will see some improvements, especially if the world economic conditions get better.
When that happens, Dogecoin can also certainly ride a small wave along with the market. For instance, according to some experts, the average price of Dogecoin can reach an average of $0.1099 near the end of 2023 with a maximum price of $0.12.
Recently, DOGE’s price has been bearish while other cryptos see-saw from higher to lower highs and back again. The coin’s low price makes it less susceptible to price swings. Even though there have been delays, SpaceX’s “DOGE-1 Mission to the Moon” is still supposedly happening.
Consider that Dogecoin is much more efficient than Bitcoin and requires lesser fees for faster transactions. Dogecoin mining is faster than Bitcoin mining and requires far less energy, so it doesn’t have anywhere near Bitcoin’s environmental impact.
Those who are open to taking risks may consider buying Dogecoin in the first quarter of 2023 and then hope to ride the wave if the market improves by the end of the year. So, this might be a good time to buy Dogecoin if you are willing to put some money at stake.
Like always, do remember that cryptocurrencies are a speculative asset, and this applies more strongly to meme coins like Dogecoin which already have a strong stigma attached to them. So, it is important to do your due diligence before buying Dogecoin in 2023.
Before jumping into the next crypto bandwagon, here’s a good primer for those considering adding cryptocurrencies for their portfolio,