As the first meme coin in market value, Dogecoin (DOGE) has attracted the attention of many investors. In the cryptocurrency market, Dogecoin's performance is very impressive, but after reaching the peak in 2021, the price of DOGE began to fluctuate, so what is the future development prospect of Dogecoin? Let's take a look at the specific analysis below.
Future development prospects of dog coin
The future performance of Dogecoin depends on the success of the broader crypto market —— It's hard to imagine Dogecoin doing well while other assets performing poorly, and vice versa. Still, there are several dogecoin-specific factors that can help boost the value of the tokens, and may even help it return to 2021 levels (again, if broader market conditions improve).
While Dogecoin's performance is less impressive in the current 2021, it's a good choice for long-term investments. Recently, we have seen the mim industry growth, and will definitely continue to grow in the future. These memes are rarely appreciated by Internet users, and Dogecoin will be rewarded. This will lead to fluctuations in DOGE's market value.
The chances of such a collapse of the token in the next five years are rare, but the possibility of such generational price increases is high. In the next few years, only very few things required them to make big changes. Dogecoin could reach $1 in the next five years, which bodes well for investors and traders.
Factors influencing the price trend of Dogecoin
1. Overall picture of the crypto market
General sentiment in the crypto market often has a ripple effect on the price of DOGE. While the crypto market has grown exponentially in recent years, many smaller coins still stay ahead of bitcoin in terms of price movements. In essence, this means that when BTC experiences a significant downward trend, the smaller altcoins (such as DOGE) will follow. This is another way, because when investors value BTC, altcoins tends to rise at the same time.
2. the drive of celebrities
When a person mentions a cryptocurrency, it adds a level of credibility. This has happened in many of the established cryptocurrencies in the past and is a key part of the price rise in early 2021.
Musk mentioned Dogecoin in his SNL appearance, although it was also discussed by Mark Cuban, Gene Simmons, Jack Paul, Snop Doug, etc. Eventually, when the names mentioned coins, it caught the attention of the mainstream media ——, which prompted retail investors to buy coins and push up their price.
3. Community support
We have previously noticed the incredible existence of Dogecoin on the Reddit. The coin also has a loyal following on other social media platforms such as Twitter, Discord, and Instagram.
Historical prices of Dogecoin
Dogecoin (DOGE), a cryptocurrency launched by software engineers Jackson Palmer and Bil Markus in 2013, is a copy of Bitcoin, inspired by the popular Shiba Inu meme (later sold as an NFT). While the project quickly nurtured a group of enthusiastic supporters, it was for most of its existence considered at best a marginal investment.
It wasn't until 2021 that Dogecoin became mainstream, largely due to Tesla billionaire Elon Musk's public support for the meme coin. DOGE rose by about 15,000% between January 2021 and May 2021, which sent its price soaring to new highs. The price of DOGE eventually reached an all-time high of $0. [] $7,386 on May 8, bringing the project's market value to $82 billion.
After an impressive run, Dogecoin lost about-90% over the next two years. However, many investors want Dogecoin to return to its previous price peak and trigger another massive price rise.