In 2013, two friends by the name of Billy Markus and Jackson Palmer estimated that the cryptocurrency industry was taken too seriously. Many enthusiasts were excited by the blatant price Bitcoinwhich went from $ 20 to $ 800 that year. They really believed that they were on something big (and looking back, they were absolutely right).
To clarify the atmosphere, Markus and Palmer launched their own cryptocurrency in December 2013 called Mastiff (DOGE -1.82%)). It was inspired by the same “Doge”, which spread on the Internet at the time. In other words, friends have created Dogecoin like a joke, and they admit it openly.
However, they watched their creation quickly rise, and despite sending investors to a crazy roller coaster race in the past 12 years (more about it in an instant), Dogecoin has always had a market capitalization of $ 51 billion to date.
Dogecoin is currently negotiated at only $ 0.35 per token, but with a series of potential tail winds in the pipeline, could now be a good purchase opportunity when it is still lower than the price of $ 1 ?
Dogecoin directed several upper cryptocurrencies higher in 2024
Dogecoin was one of the most efficient cryptocurrency Last year, with a huge 250%gain, beating industry leaders like Xrp,, EthereumAnd even Bitcoin:
Dogecoin price data by Ycharts
Most gains occurred after November 5, when President Trump won the election. He campaigned on a Pro-Crypto program, promising friendly policies and deregulation to open the way to new use cases that could generate value in industry. He even told investors that he planned to make America the world capital of cryptography.
Elon Musk was a great financial medium for Trump’s presidential campaign, and after the elections, Trump named him at the head of a new initiative responsible for identifying the means to reduce public spending. This is called the Ministry of Government efficiency, or Doge to be short, which is a reference to Dogecoin.
For what? Because Mastiff is to be Musk’s favorite cryptocurrency.
The Elon Musk effect
Musk The interest in Dogecoin dates back to 2021, when he regularly promoted it on social networks. His antics were a great reason why he climbed 15,769% in just five months between the beginning of 2021 and May 8, namely the date it appeared Saturday Night Live And participated in a sketch on the theme of Dogecoin.
Dogecoin reached a record summit of $ 0.73 during this program, a level that he still has not exceeded. This marked the moment when investors realized that Musk had no tangible plan to support the value of the token beyond his social media jokes. In mid-2022, Dogecoin had lost more than 90% of its advanced value.
This brings me to a very important point: Dogecoin is only a speculation vehicle. It has not gathered any real public service since its creation in 2013 – it is not widely accepted by companies as payment of goods and services, nor a reliable reserve of value. There is also no indication that the token will play a role in the new DOGE initiative.
Supply is one of the largest obstacles of dogecoin to the creation of a lasting value. About 147.7 billion tokens are currently in circulation, and although there is an annual ceiling on additional supply, new dogcaoins can be technically “mine“Each year until the end of time.
Image source: Getty Images.
Dogecoin could reach $ 1, but there will probably not be left there
The post-electoral rally of Dogecoin was recently blocked at $ 0.47, which is still well below its 2021 record. It could be a sign that investors finally express the prudence of the speculative nature of the token even, especially from others crypto-monnaments like bitcoin have climbed to new heights.
But it is impossible to predict the end of speculative races, especially when the catalyst is still active – in this case, it is the user -friendly trump administration of crypto that supports the optimistic feeling of investors in industry. Therefore, perhaps Dogecoin only takes a break before resuming his last rally.
If Dogecoin had to reach $ 1 per token, his market capitalization would be $ 147 billion. It would still be just a simple fraction of the $ 2 Bitcoin trillion Stock market capitalization is why I think it is possible (but not likely) with a sufficiently powerful speculative race.
Staying at this level will be the difficult part. Remember that the new Dogecoin offer constantly strikes the market, which is lowering down its price. In addition, as there are no concrete fundamentals to support a value of $ 147 billion, there will probably be a clear collapse at some point in the future.
In my opinion, Mastiff Finally will lose more than 90% of its value, just as it did after its Bull Run 2021. Consequently, investors should probably avoid it – whatever its current price.