Could Dogecoin reach $ 1 in 2025?

Cryptocurrencies have soaked since early November while investors are predicting that a newly elected Trump administration will be more friendly towards digital assets. Although it is even earlier, the key personal appointments and an executive decree calling for regulatory measures are promising signs.

Mastiff (DOGE 0.81%))the popular coinhas exceeded its highest price since 2021. Investors may wonder if this new potential era for cryptocurrencies can push Dogecoin to new heights.

Currently, at around $ 0.35 per room, the Dogecoin price must almost triple to reach $ 1. This significant number of milestones could indicate legitimacy for a cryptocurrency that started like a joke. But what is the probability, and does Dogecoin offer a legitimate advantage for investors?

Here’s what you need to know.

The return of Dogecoin is much further than most people do not think so

Many investors see the price of Dogecoin and assume that a potential return is just beginning because it is not close to its old sum. The Dogecoin price must double from here to reach new peaks and is almost a triple of $ 1 permanent reaches per token.

However, Dadecoin’s return is already much further than most do it. Some cryptocurrencies have a fixed supply, but does not do so. About 14.4 million new tokens are extracted and added daily to the offer. At its peak in 2021, Dogine’s market capitalization reached around $ 73.8 billion, and it dates back $ 52.7 billion today.

In other words, the Dogecoin price is around 50% reduction on its high level, while its market capitalization is not down 28%. That’s how it inflation Works: if the supply of a cryptocurrency or fiduciary currency Develops faster than demand, the value of each token or dollar decreases. Dogecoin will always have this imperfect line, continuously pushing its price.

A limited audience and increasing competition could limit the demand for Dogecoin

Hypothetically, the price of Dogecoin would increase if demand increased. However, several factors influence this, and they do not particularly promote Dogecoin.

First of all, coins like Dogecoin use a limited audience. People have earned money on Dogecoin and other coins. However, they are very volatile and risky, do not represent any company or underlying active and have little use in daily life. The purchase of coins is closer to the game than to invest, and it is ok as long as you recognize the risks involved and limit them to a small part of a diverse portfolio. Many investors will not participate.

Second, there is growing competition. While Dogecoin was among the first coins and is still the most important today by a considerable margin, the more recent pieces of memes have gained steam, including Shiba Inu ($ 11.8 billion in market capitalization), Pepper ($ 6.4 billion), and Official trump ($ 5.8 billion).

Unfortunately, the pieces even often depend on virality to generate demand that increases prices. You could say that Dogecoin must now fight for Mindshare with its main audience.

Should investors are looking for Dogecoin to hit $ 1?

It is not known how the recent recent momentum of Dogecoin could wear it, but the chances seem that its price takes place at one dollar per token.

Remember that Dogecoin market capitalization is already at less than 30% of its top of all time, so it should become much larger than ever to reach this price. Of course, Dogecoin experienced a boost of the excitement of the post-electoral cryptocurrency. However, I am skeptical that its market capitalization exceeds the levels reached during a market bubble Caused by 0% interest rate and an unprecedented monetary stimulus, a unique situation caused by a global pandemic.

Ultimately, once the amount of movement culminates, it could be difficult for Dogecoin to maintain its price, which makes it subject to accidents. If you buy coins or other pieces of memes, know the risks, keep your expectations to the earth and use only money you can afford to lose.