Evaluating the Current State and Future Trajectory of Dogecoin

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Dogecoin is one of the finest jokes on the cryptocurrency ecosystem. Literally. The project began as a joke by Jackson Palmer in 2013, inspired by the Doge meme. Later on, Billy Markus reached out to him to build the Dogecoin blockchain, and they launched the crypto together, in late 2013. 

Although it started off as a joke, the project eventually took a serious turn, and it’s currently one of the top 10 cryptocurrencies by market capitalization. It’s not the only memecoin, but it’s the largest and most solid one in this ecosystem.

The project has formed a large community that keeps developing and boosting the asset in the markets. Despite being a memecoin, it is a serious and safe project, offering all the advantages of the crypto ecosystem. It is decentralized, transparent, and open to anyone who wants to jump in. Any investor who wishes to buy Dogecoin and start trading DOGE can get it on the available exchanges.

The Strengths and Weaknesses of Dogecoin

Like any coin in the crypto ecosystem, Dogecoin has a set of great features in its favor. But this doesn’t mean there aren’t also a few downsides that could make some investors think twice before putting their money on it. 

Let’s take a look at some strong points of Dogecoin, but also evaluate the negative side of this memecoin.

Strong Points

While Dogecoin follows the path of previous blockchains, like Bitcoin, it adds a few features that make it a strong investment.

• Inflationary supply: There is no limit to how many DOGE will ever exist. While there can only ever be 21 million BTC, the Dogecoin blockchain generates 10,000 new coins every minute, and will continue to do so forever, or until the community decides to modify the codebase.

• Fast transaction speeds: The Dogecoin blockchain creates new blocks every minute, and processes over 30 transactions per second. This is ten times faster than Bitcoin, with a 10 minutes block time, and barely 7 transactions per second.

• Positive side of volatility: Market volatility is one of the most alluring aspects of crypto markets. Sudden price swings can expose investors to great gains if they know how to time the market well. Day traders benefit greatly from assets with high volatility, and DOGE is more volatile than BTC.

As you can see, Dogecoin is not just a joke coin. It is more transparent and open than many currencies that claim to be completely serious, which makes it a decent asset overall.

Negatives

Dogecoin offers great value to traders and users. However, there are a few downsides that contribute to it not being taken seriously by some investors.

• Lack of development: The project still has creator Billy Markus on its development team, and the community also contributes to maintaining the blockchain. But the development is not as active as other “more serious” projects, like Bitcoin, Ethereum, or Cardano, to name a few examples. This can hinder the adaptability of Dogecoin to new needs, and its viability in the long term.

• Limited use cases: The infrastructure of the Dogecoin blockchain is as serious as any other. But unlike other cryptos, it does not provide any additional value that could set it apart from other alternatives. It’s not a bad cryptocurrency, but it doesn’t stand out from any competitor.

• Security concerns: Dogecoin’s popularity, paired with its low mining hash rate, makes it more vulnerable to attacks. Litecoin, which shares the same mining algorithm, has an advantage of over 100 TH/s while having a lower market capitalization.

Overall, any investment in DOGE should be made after careful consideration of both its strengths and weaknesses.

Dogecoin Price Prediction

DOGE had a poor market performance during most of 2023. Near the end of the year, however, it started going up again. From October to December, the price of DOGE rose around 75%, reaching over $0.10. It quickly corrected and sat around $0.08, its current price range. However, Dogecoin price prediction are pretty optimistic about its future performance. 

2024 seems to be a bullish year for the crypto market as a whole. Bitcoin is already making gains, and DOGE usually follows BTC’s price movements. Moreover, there are a few features and alliances on the road for Dogecoin, so that could also help boost the price of the coin. Overall, the market as a whole seems to be entering prosperous times, and this will affect BTC, DOGE, and all the solid projects in the ecosystem.

Conclusion

Memecoins are not taken too seriously by seasoned investors and traders. It’s no help that they’re frequently used for pump-and-dump schemes. This happens when some traders invest a lot in a small timeframe, boosting the price and attracting new investments, and then sell at the peak, provoking a downfall in the price. 

However, Dogecoin is not only the first but also the most serious one out of the memecoins. That’s proven by the support it has received from serious investors and the place it has conquered among the top currencies in the crypto market. While we can’t ensure its price will effectively go up, predictions seem to be positive it might happen. In the end, the safest advice is to do your own research and only invest what you are willing to lose.