Dogecoin soared 250% in 2024, beating XRP, Bitcoin and Ethereum. Can it reach $1 in 2025?

Dogecoin (CRYPTO:DOGE) had a spectacular year in 2024 with a gain of 250%. It has outperformed many other popular cryptocurrencies, including XRP (Ripple), BitcoinAnd Ethereum.

Dogecoin Price data by Y Charts.

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As you can see, most of these cryptocurrencies only took off around November. This was when Donald Trump won the US presidential election, after running a pro-cryptocurrencies campaign.

Cryptocurrency investors are now bracing for a much friendlier regulatory environment, which could pave the way for new use cases and more value creation opportunities across the industry. Dogecoin investors also received another positive surprise after Trump’s victory, and it involves Tesla CEO Elon Musk. Will that be enough to bring it to a price per token of $1 this year?

Musk is one of Dogecoin’s biggest supporters

Musk was a big promoter of Dogecoin in 2021. He regularly talked about it on social media and even appeared in a Dogecoin-themed skit on Saturday evening live in May of the same year. Unfortunately, the lack of concrete value creation projects for cryptocurrency quickly became evident to investors.

Dogecoin was trading at $0.0046 per token in early 2021, and it hit an all-time high of $0.73 the night of Musk’s appearance on SNL five months later. This represented a whopping gain of 15,769%, but late-buying investors were left licking their wounds as the cryptocurrency subsequently plunged more than 90% through mid-2022.

Dogecoin showed little activity in 2023 and most of 2024, remaining quiet until the election. Trump was something of an advocate for crypto on the campaign trail, lending his support to radical ideas such as establishing a Bitcoin reserve within the US government. So it’s no surprise that investors reacted to his election victory by rushing to buy cryptocurrencies at all levels.

Musk put your money and influence behind Asset‘s campaign and his imminent return to the White House have reignited significant enthusiasm for Dogecoin in particular. This enthusiasm reached its peak after Asset announced that Musk and fellow billionaire Vivek Ramaswamy would lead an initiative he dubbed the “Department of Government Efficiency,” or DOGE for short. Yes, the acronym could refer to Musk’s favorite cryptocurrency.

Dogecoin quickly climbed to a 52-week high of $0.47, but since there were no concrete plans linking the token to DOGE – which won’t actually be a department of the US government, as cabinet agencies can only be created by Congress – the rally seems like déjà vu. Additionally, its recent high is still well below its all-time high, suggesting investors may be feeling more cautious this time around.

Dogecoin lacks real fundamentals

This is probably an appropriate time to remind readers that Dogecoin’s founders created it as a joke in 2013. Even they are surprised by its incredible price gains, probably because it still has no use in the world real.

According to Cryptwerk, only 2,315 companies worldwide are willing to accept Dogecoin as payment, and many of them are obscure crypto service providers, internet services, and online gaming houses. In other words, the price of Dogecoin fluctuates primarily based on the whims of speculative investors, not due to organic demand.

To be honest, no cryptocurrency has yet gained consumer or business adoption. However, Bitcoin Continues to Climb to New Highs because investors view it as a good store of value, a bit like a digital version of gold since its maximum supply is capped.

Dogecoin lacks these attractive features. Although the issuance of new tokens is limited each year, more of them can be issued. mine over an indefinite period. Technically, this makes its supply unlimited, meaning Dogecoin will likely never be a good store of value.

Image source: Getty Images.

Dogecoin Could Hit $1, But Don’t Expect It to Stay There

It is virtually impossible to accurately predict when the end of a speculative rally might arrive. It is unclear where the price of Dogecoin will land once this latest surge is complete. It’s trading at $0.38 per token at the time of writing, so could it surge 163% to $1 this year? It’s entirely possible.

Trump has already nominated pro-crypto businessman Paul Atkins to lead the Securities and Exchange Commission (pending Senate approval), meaning the crypto industry will likely face a much friendlier regulatory environment than it has in the past four years under SEC Chairman Gary Gensler. This doesn’t guarantee that Dogecoin enthusiasts will invent a valuable new use case, but it could propel bullish sentiment for the meme token to new heights.

With a market capitalization At $56 billion at the time of writing, Dogecoin is the seventh largest cryptocurrency in the world. If it reached a price of $1 per token, its market capitalization would be around $147 billion, which would still be only a small fraction of that of the token. BitcoinThe current valuation of $1.9 trillion.

This is why I think it is possible (but unlikely) that a powerful speculative frenzy will propel Dogecoin to new highs this year. But investors should prepare for history to repeat itself: once this speculative fever dissipates, Dogecoin could plunge by a substantial amount again. Lacking strong fundamentals and organic demand, there is nothing to support its long-term value.

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