Dogecoin is a cryptocurrency that began as an entertaining joke but has since gone on to see massive gains — and losses. The coin dates back to 2013, when it was first developed by software engineers Jackson Palmer and Billy Marcus.

3 Things You Must Do When Your Savings Reach $50,000

The pair named their coin after a comical misspelling of the word “dog” used in memes featuring images of Shiba Inu dogs. Despite the joke status, the coin grew to an all-time high of $0.7376 on May 8, 2021. There are many questions about its future value. Can dogecoin reach $1,000 by 2025? Will dogecoin crash? Here’s a look at how the price may develop.

What Is Dogecoin?

Dogecoin is an “accidental crypto movement,” according to the coin’s official website. The open source peer-to-peer cryptocurrency was originally created as a joke.

The Dogecoin Manifesto states:

Being useful, we value utility over technical brilliance.

Being personable, we value individuals and interactions over profit-driven economics.

Being welcoming, we value collaboration and trust over competition and exclusivity.

Being reliable, we value working solutions over speed of delivery.

While it continues to make people smile, this coin is considered a success. It’s important to note that Dogecoin doesn’t have any blockchain functionality. Instead, it is used as an actual currency. All in all, Dogecoin has surpassed its own founders’ expectations.

The Current State of Dogecoin

As of Oct. 16, 2023, dogecoin sits at $0.06012. That’s a far cry from its all-time high of about $0.74 in May 2021. While there have been minor recoveries along the way, the price dropped throughout 2022. At the end of 2022, a short spike happened. But since that larger spike, DOGE has seen an overall downward trend.

Despite the drop, dogecoin can still be seen as a success story. The coin first hit the one-cent mark in January 2021, years after its introduction. Anyone who bought at that moment is still up more than 650% on their initial investment as of Nov. 20, 2022. Those who bought then and sold at the top gained more than 7,000%. The coin traded under $0.01 for years, so some could have made even greater profits.

Dogecoin is the 9th-largest cryptocurrency by market cap, at around $8.5 billion, as of October 2023.

Factors That Could Affect Dogecoin Price Predictions

One of the most important things to know about dogecoin is its entanglement with Tesla and Twitter CEO Elon Musk. Dogecoin’s price action has a history of following Musk’s input on Twitter, with the major growth leading up to the all-time high corresponding with his stated support for the coin.

Similarly, a major price drop happened during Musk’s May 2021 appearance on the comedy sketch show “Saturday Night Live.” When Musk made an apparently satiric comment referring to dogecoin as a “hustle,” the price dropped 24% in a span of 24 hours, falling to as low as 76% below its May high.

Some traders believe that the link between Musk and dogecoin still stood strong during initial reports of his acquisition of Twitter, which spurred minor spikes in the coin’s price. This trend continued with a major spike on April 25, 2022, when Twitter accepted Musk’s bid to acquire the company.

Dogecoin saw a considerable drop from its Twitter-correlated spikes, losing approximately half its value between April 26 and May 12. This came as cryptocurrencies across the board crashed and lost significant value, though, and may not reflect specifically on dogecoin.

The 24-hour trading volume was up over 80% and the price was up over 5% on Oct. 25, 2022 due to rumors of Elon Musk closing on his purchase of Twitter–now X– in the coming days and enabling doge payments on the platform. The price spiked further, to $0.1554, within a few days after Musk took over on Oct. 27. However, dogecoin lost most of those gains within two weeks, and there’s been no indication yet of whether it might have a future as a payment currency on X.

The Dogecoin Use Case

Dogecoin is different from bitcoin and many other cryptocurrencies in a few key ways. For one thing, there isn’t a finite cap on the number of dogecoins that can be produced. Bitcoin does have such a cap, and its relative scarcity plays a role in its widespread use as a speculative investment.

Dogecoin is intended to be less of an investment opportunity and more of an actual currency. The coin originally acted as a means of rewarding users on social media and other platforms. The practical use of dogecoin as a currency could limit its potential growth as a speculative investment but could also lend it stability.

Dogecoin Price Predictions

Cryptocurrency markets are volatile and difficult to predict, with the turbulence of May 2022 being a key example. However, there are some who still have an optimistic outlook for dogecoin and other cryptocurrencies.

One of those optimistic predictions comes from noted cryptocurrency advocate, Roger Ver. Ver is well known for his public support for a wide range of cryptocurrencies, including dogecoin. He provided some insight into his dogecoin outlook earlier this year.

Ver placed dogecoin among his top three contenders for emerging dominant cryptocurrencies, alongside litecoin and bitcoin cash. He specifically pointed out dogecoin’s advantages in both transaction costs and reliability as the reasons he favors the currency.

Dogecoin Price Prediction 2023

Changelly predicts a maximum price of about $0.06 for dogecoin in 2023, with an average of just under $0.06. Coin Price Forecast has a similar forecast, with a predicted price of $0.0601 for DOGE at the end of 2023.

Trading Education is a bit more optimistic than both. It predicts that Dogecoin will hit a high of $0.25 by the end of the year.

Dogecoin Price Prediction 2024

Forecasting crypto prices — or prices of any investment — years in advance is difficult, but Changelly and Coin Price Forecast have made predictions. Changelly believes the average price of dogecoin will reach about $0.0710 by the end of 2024. Coin Price Forecast predicts a price of $0.0743. Trading Education predicts Dogecoin will hit a price of $0.45 by the end of 2024.

Dogecoin Price Prediction 2025

As mentioned above, it’s difficult to predict the price of Dogecoin years in advance. While analysts can make predictions, the events that happen in the intervening years can make a significant difference to the price of Dogecoin.

As of this writing in October 2023, Trading Education predicts that Dogecoin will hit a price of $1.75 in 2025. That’s significantly more optimistic than Coin Price Forecast’s prediction of hitting $0.0847 by the end of 2025. Changelly’s prediction sits somewhere in the middle, with an estimated average price of $0.132 in 2025.

What Will Dogecoin Be Worth in 5 Years?

The further out you try to predict prices for crypto, the less accurate the predictions become. However, Changelly offers a maximum price prediction of about $0.629 for dogecoin in 2028. Coin Price Forecast is again less optimistic but still positive in the long-run, with a prediction of just over $0.10 per dogecoin by the end of 2028.

Dogecoin Price Prediction 2030

In the volatile world of cryptocurrency, trying to predict the price of a meme coin in 2030 is very difficult. But that doesn’t mean analysts won’t try to predict the future.

As of this writing in October 2023, Coin Price Forecast predicts that Dogecoin will hit a price of $0.1326. Changelly is significantly more optimistic, with a price prediction of $1.10 by the end of 2030. Trader Education is even more optimistic, with a price prediction of over $3 per coin, with an all-time high of $4 in 2030.

The large range of dogecoin price predictions highlights how difficult it can be to predict the future price of a volatile cryptocurrency over five years in the future.

Dogecoin Price Prediction 2040

2040 is almost 20 years into the future. With that, many crypto analysts don’t even create predictions for that long of an investment timeline. The lack of predictions doesn’t necessarily mean that dogecoin will be worthless in 2040. While it’s possible dogecoin will be wiped out completely by 2040, it’s also possible it will continue to grow beyond our wildest imaginations by this future date.

Changelly doesn’t offer a price predcition for 2040. The furthest data it offers is December 2032, which predicts an average price of $2.82 in that month. But that’s still well before 2040.

Dogecoin Price Predictions

If you want some help keeping track of these price predicitions through the years, the table below can help. The information in the table is based on Changelly’s price predictions for Dogecoin.

Keep in mind that the predictions above are not set in stone. It’s impossible to accurately predict the exact price of a cryptocurrency days, months or years into the future.

What If Dogecoin Were To Become a Dominant Cryptocurrency?

Dogecoin is already a major contender as the 9th-ranked cryptocurrency by market cap as of Nov. 20. However, its $10.01 billion market cap is much lower than that of the current dominant cryptocurrency, bitcoin, at almost $310 billion as of the same date. Bitcoin makes up 38.83% of the current crypto market, with ethereum following at 17.27%. So how much could dogecoin be worth if it were to become a dominant cryptocurrency?

If dogecoin were to truly become a dominant cryptocurrency and match ethereum’s market cap, it would have a price of around $1.04. If it were to overtake bitcoin, it could have a price of $2.55.

These prices show potential for growth but are also a sign of where the limit could lie. Can dogecoin ever reach $100? Probably not. Can dogecoin reach $10 this year? Also unlikely. What will dogecoin be worth by 2025? It’s hard to say.

In a world where dogecoin becomes a leading cryptocurrency, investors could see today’s investment increase by over 3,500%.

What If Dogecoin Crashes Entirely?

Of course, not all cryptocurrencies are success stories. One recent example highlights just how poorly things can go for once-successful cryptocurrencies. Between May 5 and May 12 2022, issues with the stablecoin terra caused the associated cryptocurrency LUNA to fall from $83 to practically nothing. Its all-time high was $119.02.

This example shows that with cryptocurrencies, no one can tell just how low the bottom will be. Despite positive dogecoin price predictions from some, there’s always a risk that prices could plummet.

Is Dogecoin the Right Fit For Your Portfolio?

Building an investment portfolio is one way to build wealth over the long term. Many choose to pursue investing as a way to build a brighter financial future. Some experts believe that crypto should be a part of your investment portfolio. But whether or not crypto is right for your finances varies based on your situation.

In general, crypto is considered a high-risk investment. And as with all high risk investments, there is a significant risk of losing capital when you choose to purchase crypto. If you want to include crypto in your overall investment strategy, it’s usually a good idea to apportion a relatively small percentage of your investment portfolio. In other words, only invest what you can afford to lose in crypto because the potentially lucrative rewards come with extreme risks.

When deciding what coins to include in your investment portfolio, Dogecoin is a viable option. But remember that this is a meme coin; it lacks some of the basic utility functions that other more “practical” cryptocurrencies inherently possess. Other potential cryptos to include in your investment portfolio include bitcoin, ethereum, and litecoin.

Other Ways to Invest

If the risks of investing in Dogecoin, and the highlighted uncertainty of price predictions, makes you less interested in adding Dogecoin to your portfolio, you have other options. Below are some other assets to include in an investment portfolio:

• Stocks: The stock market is full of assets to include in your investment portfolio. While the stock market also has volatility and risks attached, it is a more proven method of building wealth over the long term. In general, beginners do best by choosing to invest in an index fund instead of an individual stock.
• Bonds: Bonds are another type of asset you can build into your portfolio.
• Certificates of deposit: If you are looking for a low-risk way to put your dollars to work, a CD might be the right fit. You agree to lock your funds up for a specific period of time. In return, the financial institution provides a set amount of interest over the term.

As you build out an investment portfolio, don’t forget to consider other savings goals. For example, it’s useful to have an emergency fund stashed in an accessible high-yield savings account. A good emergency fund usually holds between three to six months’ worth of expenses. If you don’t have those savings on hand, your finances might not be ready for the risk attached to investing in a meme coin.

Takeaway

Many investors have profited from investing in dogecoin, but its future — and the future of all cryptocurrencies — remains uncertain. While there could be more gains on the horizon, any investor should evaluate cryptocurrencies very carefully and invest cautiously.

Sarah Sharkey, John Csiszar and Daria Uhlig contributed to the reporting for this article.

Data is accurate as of Oct. 16, 2023, and is subject to change.