Cryptocurrencies have established themselves as relevant investments in recent years. This is due to some of their unique features. Oftentimes, prices are often the consideration when cryptocurrencies are brought into the spotlight. Indeed, the value of most cryptocurrencies has been rising rapidly for a while now. As a result, there are millions of transactions carried out daily across major cryptocurrency networks.
Over the past few months, Dogecoin has taken the world by storm and its value has grown significantly, grabbing public attention across the far reaches of the globe. There have been stunning gains, several approvals from big names, and considerable dominance of crypto Twitter. As of the time of writing, this cryptocurrency is valued at about $0.2014.
Yet, there have been several predictions about the rise of Dogecoin. As a result, this article is aimed at not only accessing the growing popularity of Dogecoin across the globe but also tackling the ultimate question on the mind of many: will Dogecoin ever reach the $1 mark? Now, let’s dive in!
The growing popularity of Dogecoin
After it was introduced to the world in 2013, one Dogecoin was valued at $0.0002. However, its value has been increasing rapidly and as mentioned earlier, is worth about $0.20. Currently, based on market capitalization, it is ranked as the seventh most popular cryptocurrency in the world. Away from this, it is importance of trading with the right app cannot be ignored. To know more about them, several reviews, including BitQL reviews, can be useful.
Indeed, most of its enthusiasts believe that it offers real value to its users especially when it comes to its low transaction fees. There is no denying the fact that the crypto industry giants – including Bitcoin and Ethereum – have higher fees than Dogecoin. Yet, it ranks considerably higher than several Altcoins.
Can it reach the $1 mark?
For so many enthusiasts and early adopters, Dogecoin brought so much hope as it underwent a stunning rise and growth. In fact, its value surged higher than ever this year when several tweets about the virtual currency from the well-known Elon Musk surfaced. As a result, he is often referred to as the Dogefather. His tweets ensured that many of his followers – millions of potential investors – were introduced to the cryptocurrency and this resulted in a frenzy in the market.
Its future remains highly speculative and with daily volatility of about 20% to 30%, it has not perfectly established itself as a great store of value. Even though it could likely reach – or even surpass – the $1 threshold, some experts believe that it is not the best crypto to invest in despite its rising popularity. The level of utility it offers its users is significantly lower than that of other cryptocurrencies.
Furthermore, there will be fluctuations in its price in the short term as more celebrities and other videos continue to endorse its existence. However, this offers nothing more than a speculative play for a long-term investor.
Volatility of Dogecoin
Dogecoin has seen several spikes in its value over the past years. The main reason for this is that this digital currency has a high level of volatility. Indeed, it is believed, according to certain studies, that Dogecoin is three times more volatile than Bitcoin.
So many reasons are behind this high volatility level. One of these involves the fact that Dogecoin is an extremely speculative asset with relatively few basics. As a result, many investors are only interested in purchasing the coin to take advantage of its price fluctuations. In other words, its value depends on public sentiment and the market.
Conclusion
It’s not a strange fact that the cryptocurrency industry keeps getting popular. Because of this, Dogecoin will most likely gain more exposure. However, for a coin that is driven by public approval and with a high level of volatility, its long-term sustainability can only be speculated.
