Dogecoin, the net’s favorite cryptocurrency, continues to appreciate in value, the cryptocurrency has increased in value by more than 3,000 percent since its inception two years ago.
The cryptocurrency was only worth $0.0023 last year, but it has since risen in value. According to Coin market info, DOGE is floating around the 40 cent mark per token at the time of writing.
Elon Musk, according to experts, is one of the key reasons for the skyrocketing price. After more than doubling in value in the last few days, the market will likely settle at about 2 cents or less.
When, if ever, can Dogecoin reach $1 per unit? Dogecoin, according to Forsige, would be worth more than $2 per coin by April 20, 2022.
However, it will gradually increase in value as various forces support it, and it could reach $1 from December 2021 to January 2022 before hitting another milestone in a short period of time by April 20, 2022, fuelled by the Dogecoin day event. April 20 has been designated as a Dogecoin day, as is typical.
Dogecoin has now achieved financial milestones that seemed unthinkable at the start of the year. The market capitalization has surpassed $50 billion, making it more valuable than Ford. The potential is there for a major price rally.
For the majority of its seven-year existence, Dogecoin has had a value of half a penny. For the rest of the time, 10,000 new Dogecoins will be released every minute, implying that the value will never hold. It’s a cryptocurrency that’s supposed to keep getting cheaper.
Even the coin’s maker as is – will be perplexed by its meteoric rise. And the Doge community will turn into an overnight millionaire and billionaire respectively depending on the amount of dogecoin you will be hodling.
Many analysts have expressed strong support for the meme-inspired cryptocurrency. According to a Business Insider report published on Monday, David Gokhshtein confirmed his previous Dogecoin price prediction of $1. He believes the price will exceed a dollar because he sees it as a gateway to the crypto market for newcomers before they transition to other cryptocurrencies.
Gokhshtein explained that he believes Dogecoin will reach such a high price simply because “people place value on things,” and “if people deem something to be worth something, it will get there.” He also stated that he does not believe that Elon Musk’s promotion will be the sole reason for its increase in value, as retail-focused exchange Robinhood and “the meme economy” have also aided it significantly.
Prices of popular cryptocurrencies such as Bitcoin, Etherium, and DogeCoin have recently plummeted. Around May 19, 2021, Bitcoin, Etherium was trading at an all-time low on cryptocurrency exchanges. And at the same time, DogeCoin’s price drops to around 15 cents, while the Shiba Inu coin drops by more than 48%.
According to Reuters, Bitcoin fell to a three-and-a-half-month low after China prohibited financial payment institutions from providing cryptocurrency services.
Almost all coin prices have felled and are then in the red. The price drop of these popular coins may appear dramatic, but given the high volatility of crypto assets, it should not be surprising. But, like everything else in life, bad days are unavoidable, and they will come and go.
Apart from Elon Musk’s tweets, the fall is largely attributed to China’s crackdown on cryptocurrency usage and mining, even as the digital currency faces increased regulatory scrutiny from US lawmakers.
Why We Believe Dogecoin Price Will Be Worth $2 by 2022
However, As of the time of editing this article, Dogecoin (CRYPTO: DOGE) is up 11.37 percent in the last 24 hours to $0.278 per token as of 10:30 a.m. EDT.
The coin is surging as part of a larger cryptocurrency rally that has seen capital return after nearly a quarter of consistent sell-offs. From May to late July, a combination of fear, uncertainty, and doubt (FUD) drove the crypto market down by nearly 51%.
Dogecoin does seem to have a limited supply, with 130.8 billion coins in circulation and 5 billion added each year. That is, all that is required for the coin’s price to rise is for the sum of capital inflows and merchant transactions to exceed the 3.8 percent inflation rate.
Dogecoin is also far more environmentally friendly than Bitcoin. The network employs an auxiliary proof of work mechanism, allowing those who mine other currencies, such as Ethereum, to mine Doge for free.
Furthermore, Doge’s small inflationary nature keeps mining difficulty – and, by extension, electricity use – low.
As a result of these factors, it is a crypto asset that investors can bet on with a small amount of capital, and this gives the meme coin a good chance of outperforming bitcoin immediately after reaching the $2 predicted price on Doge Day 2022.
Common Knowledge Gaps
What is Dogecoin?
Dogecoin is a cryptocurrency created by software engineers Billy Markus and Jackson Palmer as a joke in response to the wild speculation in cryptocurrencies at the time. Despite its satirical nature, some see it as a legitimate investment opportunity.
Will Dogecoin hit $1?
The race to $1 is on, and Dogecoin has already achieved financial milestones that seemed unimaginable at the start of the year. According to Forsige, Dogecoin will be worth more than $2 per coin by April 20, 2022.