Is Dogecoin a Good Investment in 2024?

Dogecoin is the most popular meme coin and the largest by market capitalization. It trades on all major exchanges and even traditional brokerages. Even so, Dogecoin currently trades 87% below its all-time high, a vast capitulation from its 2021 peak.

So is Dogecoin a good investment, or are there better alternatives in the cryptocurrency market? This guide explores everything there is to know about the Dogecoin investment thesis. We explore its price history and future potential, its unique selling points, and what risks to consider as a potential investor.

Is Dogecoin a Good Investment Right Now?

While Dogecoin is a meme coin without any utility, it remains the most valuable cryptocurrency in this niche. Its current market cap of over $14 billion makes it more valuable than many S&P 500 constituents. What’s more, Dogecoin has produced growth of about 53% in the last year.

As such, those interested in meme coins, but want to reduce the risk exposure, might find that Dogecoin is a great option. However, it’s important to note that Dogecoin’s recent growth pales in comparison to other meme coins.

For instance, Pepe, currently valued at $3 billion, has increased by almost 820% in the past 12 months. And then there’s dogwifhat, the largest Solana meme coin, with gains of 847% since launching in December 2023. These are just two examples of many.

The key point is that speculative investors with a high risk appetite might find that other meme coins offer greater upside potential — especially those with a smaller market capitalization. Ultimately, while Dogecoin could recover its former highs during the next altcoin season, other projects could offer bigger gains.

Why Dogecoin Can Be a Good Investment

Let’s take a closer look at the Dogecoin investment thesis, starting with some of the reasons why DOGE could be a good buy. This will help you evaluate the question; is Dogecoin a good investment?

Currently Trading at an 87% Dip

Let’s start with Dogecoin’s discounted valuation. Dogecoin currently trades at around $0.10. This is 87% below its all-time high price of $0.74, meaning those buying Dogecion today will secure a huge discount, at least when compared to its prior peak.

A return to the $0.74 level from current prices would offer an upside of 640%. However, Dogecoin would need strong positive sentiment in the broader cryptocurrency markets, especially in the meme coin niche.

More Accessible Than Most Other Meme Coins

Dogecoin is considerably more accessible than most other meme coins. It trades on virtually every cryptocurrency exchange, ranging from MEXC, Binance, and Coinbase to OKX, Bybit, and Kraken.

Moreover, Dogecoin also trades on traditional brokerages. This includes retail-friendly platforms like Webull and Robinhood, meaning those who don’t feel comfortable using cryptocurrency exchanges can still invest in Dogecoin.

In contrast, many meme coins trade on decentralized exchanges. These aren’t nearly as accessible for beginners, considering investors need a self-custody wallet that’s already funded with cryptocurrencies.

One of the Largest Cryptocurrency Communities

Dogecoin has one of the largest and most loyal communities — not only in the meme coin space but also in the broader cryptocurrency industry. The Dogecoin community can be measured in various ways.

For example, Dogecoin boasts more than 7 million unique wallet addresses. Shiba Inu, the second-largest meme coin by market capitalization, has just 1.4 million. This drops to just 281,000 for Pepe, the third-biggest meme project.

Dogecoin’s community dominance is also supported by its social media presence. For instance, Dogecoin has almost 4 million followers on X (formally Twitter). Its posts achieve massive engagement levels too.

For example, Dogecoin’s most recent X post was viewed over 296,000 times. This is during a period when meme coin market sentiment is low. During bull cycles, Dogecoin posts typically exceed a million views.

Celebrity Endorsements

Dogecoin has achieved various celebrity endorsements, including from the world’s richest person — Elon Musk. Musk’s fascination for Dogecoin is believed to be behind its unprecedented success in 2021.

Dogecoin is not only accepted as payment for Tesla merchandise but rumors persist about DOGE becoming an ecosystem currency for X.

Mark Cuban, the billionaire businessman and TV personality, is also a Dogecoin proponent. His NBA franchise, the Dallas Cowboys, also accepts Dogecoin as a payment method.

Potential Risks of Investing in Dogecoin

Investors should also consider the risks when exploring the question; is Dogecoin a good investment?

The key risks are summarized below:

Underperforming Other Meme Coins: Dogecion has consistently undervalued other meme coins since peaking in 2021. This should concern DOGE holders greatly. Consider that Bonk has increased by over 7,000% in the past year, while Pepe has risen by 820%. Similarly, FLOKI and Mog Coin have produced growth of over 2,400% and 621%, respectively. Dogecoin has increased by just 53% over the same period. This could highlight that interest in Dogecoin is waning.
Uncapped Supply: Unlike some of the best meme coins, Dogecoin’s supply isn’t capped. There is no limit to the number of DOGE tokens that can enter the circulating supply. This is a huge risk, considering that 10,000 new DOGE tokens are issued every minute via its mining framework. This continuously dilutes the value of existing holders’ assets.
Volatile and Speculative: While volatility and speculation aren’t unique to Dogecoin, it’s something to consider as a potential investor. Crucially, Dogecoin’s value isn’t based on any use cases or utility. Rather, it’s a speculative asset without any intrinsic value. What’s more, Dogecoin regularly witnesses wild pricing swings. This extreme volatility won’t suit risk-averse investors.
Ever-Increasing Competition: Dogecoin was the first and only meme coin when it launched in 2013. Fast forward to 2024 and there are millions of meme coin creations, each competing for a slice of investor attention. There’s only so much capital and liquidity realistically available, meaning Dogecoin now operates in a highly oversaturated and fragmented market.

How Does Dogecoin Work?

Launched in 2013, Dogecoin is a cryptocurrency with a native blockchain. Dogecoin is a ‘fork’ of Litecoin, meaning it utilizes the same code but with some alterations. This includes increased block confirmation speeds, reducing Dogecoin’s time frame from the 2.5 minutes of Litecoin to just 1 minute.

This makes Dogecoin considerably faster than Bitcoin, which requires 10 minutes to verify transactions. In addition, Dogecoin is a cost-effective blockchain; transactions cost cents, no matter how much is being transferred.

Dogecoin, like most blockchains, has a proprietary coin; DOGE. That said, Dogecoin and DOGE are used interchangeably. Dogecoin uses the proof-of-work (PoW) consensus mechanisms, meaning its ecosystem is decentralized, secure, and transparent.

The PoW mechanism allows anyone to mine Dogecoin by verifying transactions. 10,000 new DOGE is issued to miners every minute, which means the supply continuously increases. Dogecoin doesn’t have any use cases other than wallet-to-wallet payments.

Even so, Dogecoin is a multi-billion dollar project. The value of DOGE rises and falls like any other asset. This is based on demand, supply, and broader market conditions.

Is Now a Good Time to Buy Dogecoin?

Like many potential investors, you might be wondering — is it a good time to buy Dogecoin?
From a value perspective, Dogecoin’s current price offers a solid discount. It trades 87% below its all-time high.
This means you can buy the dip while Dogecoin prices are cheap.
However, there’s no guarantee that Dogecoin will ever recover its peak price of $0.74. Consider the risks before proceeding.

Dogecoin Price History

It’s important to assess the price history when exploring the question; is Dogecoin a good investment?

We’ve established that Dogecoin was launched in 2013. Unlike many projects, Dogecoin didn’t hold an initial coin offering (ICO). This is because Dogecoin was created as a joke; its founders could never have envisioned that it would become a billion-dollar asset.

Nevertheless, CoinMarketCap data shows that Dogecoin was initially priced at $0.0002993 in December 2013. Its price action thereon was non-existent for several years. While the price did see some success when DOGE was used as a tipping currency on Reddit, these gains were small and short-lived.

Moving on, the DOGE price performed well during the 2017 bull market. It closed 2017 at about $0.009, translating to gains of almost 3,000% for those investing in 2013. Crucially, Dogecoin’s price performance really took off in 2021, coinciding with a broader bull cycle.

Dogecoin was priced at just over $0.005 at the start of 2021. It then went on a parabolic run, hitting all-time highs of $0.74 by May. This represents growth of over 14,700% for those investing at the beginning of the year. And for those holding since 2013, gains of more than 247,000%.

So, had you bought just $100 worth of DOGE in 2013, it would have been worth over $247,000 in 2021.
And, even if you only invested in early 2021, that $100 would have been valued at $14,700.

However, it’s only been downhill for the Dogecoin price since peaking in May 2021. Dogecoin hit lows of about $0.06 in 2022, a capitulation of more than 90%. Today, DOGE hovers around the $0.10 level. This is still 87% below its all-time high.

Dogecoin Highs and Lows

DOGE was initially trading at $0.0002993 when it launched in December 2013
It hit an all-time low of $0.00008547 in May 2015
It surpassed $0.009 during the 2017 bull market, representing gains of over 3,000%
DOGE hit an all-time high of $0.74 in May 2021
Today, DOGE trades 87% below its 2021 peak

Dogecoin Price Forecast

DOGE’s price forecast should also be considered when asking the question; should I invest in Dogecoin? The key issue is that, like most meme coins, Dogecoin’s price is purely speculative.

Nonetheless, we’ve explored hundreds of expert Dogecoin price predictions and summarized them below:

2024: Some experts believe that the final three months of 2024 could be bullish for the broader cryptocurrency space. This could see Dogecoin return to its 52-week high of $0.2266, an increase of about 125%% from current prices.
2025: So, will Dogecoin go up in 2025? The wider consensus is that 2025 will see a prolonged bull cycle, with many cryptocurrencies hitting new highs. Some analysts predict that Dogecoin could finally reach $1. However, other analysts are less optimistic, with an average price prediction of $0.45 for 2025.
2026: Historical cycles suggest that 2026 will be a bearish year for cryptocurrencies. This means Dogecoin could see a significant price correction. The average Dogecoin price prediction for 2026 is $0.26.
2030: Dogecoin is likely to still be the de facto meme coin come 2030. Those bullish on Dogecoin predict a potential price of $2.10. This would give Dogecoin a market capitalization of over $300 billion, factoring in its continuously increasing supply.

Where to Buy Dogecoin

You should now be able to answer the question; is investing in Dogecoin a good idea? If you’re bullish on DOGE and want to take advantage of its 87% discount, there are many ways to invest.

The easiest option is to use a reputable cryptocurrency exchange like MEXC. It offers an ‘Instant Buy’ feature that supports fiat currencies. This means you can invest in DOGE with Visa, MasterCard, and other popular payment methods. The purchased DOGE will immediately be added to your MEXC balance. You can then withdraw the coins to a private wallet.

It’s best to use a decentralized wallet that offers non-custodial storage. This means you have full control over your Dogecoin. We found that Best Wallet is one of the best decentralized crypto wallets. It supports Dogecoin and 60 other blockchains, so you can store all of your investments in one safe place. Best Wallet is free and it’s available as an Android and iOS app.

Conclusion: Should I Buy Dogecoin Now?

In summary, we’ve helped answer the question; should I invest in Dogecoin? While Dogecoin is the leading meme coin with the largest valuation and the most holders, there are too many red flags for us. Crucially, Dogecoin continues to underperform other meme coins.

This means DOGE holders are potentially missing out on better opportunities. Consider reading our 2024 analysis on the best cryptocurrencies to buy. We cover a variety of cryptocurrencies, including new meme coins, play-to-earn games, and blockchain gambling projects.

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