It’s one of the most talked about crypto projects, but, in recent months, price action has been relatively flat. Can we make a prediction about Dogecoin? Do we know what the future holds for DOGE?
With Twitter now owned by the coin’s biggest cheerleader, Elon Musk, what can we expect in the next few months?
Dogecoin Prediction Starting Point
To recap, DOGE is an open-source digital currency created via a fork of the Litecoin blockchain network in December 2013. Conceived initially as something of a joke, Dogecoin was created to be a ‘fun and light-hearted cryptocurrency’ which would have greater appeal than the serious Bitcoin.
Whilst remaining a Proof of Work blockchain, DOGE differs from Bitcoin in that the block time is just one minute rather than ten and has an uncapped supply, meaning that an unlimited supply of Dogecoin can be mined. For anyone looking to invest in Dogecoin, this is obviously important and should shape your investment strategy. However, regardless of supply concerns, DOGE remains one of the largest cryptocurrencies on the market.
Availability
Where is the best place to buy Dogecoin? As one of the largest cryptocurrencies by circulating supply and market cap, there are numerous marketplaces. According to data from Coinmarketcap, Binance is the most popular place to purchase DOGE, accounting for some 16.12% of all transactional liquidity. Following closely are Coinbase, Bithumb, and KuCoin, with 8.88%, 1.6%, and 1.17%, respectively.
Anyone looking to mine DOGE can do so via Windows, Mac, or Linux as long as there is a GPU. Due to the origins of Dogecoin, anyone mining the coin can also mine Litecoin with no extra work.
Dogecoin is also available from a Dogecoin faucet which rewards users with micro amounts of coins for completing trivial tasks such as simply logging onto a website, or completing surveys and captchas. Faucet owners derive their capital through ad revenue and from the number of times users visit sites.
Micropayments
What else can Doge be used for? Recently, there has been much talk of DOGE being used for micropayments on platforms such as Reddit and Twitter.
Since Elon Musk’s takeover of Twitter, the idea of tipping and paying for platform content has gained significant traction. There is no concrete evidence that this is happening any time soon. That said, Twitter users were able to make use of the @MyDogeTip profile to send small payments over the platform before the account was suspended in Elon Musk’s recent purge of automated bot accounts.
Micropayments are an integral part of Web 3.0 development, but, as the above example shows, we are not there just yet.
Dogecoin Prediction
Let’s turn to our Dogecoin prediction section. Here’s where we’ll look at what might happen to the memecoin and the DOGE price.
Any Dogecoin prediction must start by looking back, particularly at Elon Musk’s historic relationship with DOGE.
In early 2021, Musk tweeted a series of posts lauding the cryptocurrency and sparking rumours concerning micropayments on the site. This led to a strong price rally for DOGE, culminating in an appearance on the famed US TV show Saturday Night Live. After this, the price embarked on a downward trajectory.
Despite an upbeat Dogecoin prediction after Musk intervened, DOGE has lost some 70% of its value in the months since the peak. Recent tweets from the Twitter owner concerning Dogecoin have done little to move the price, leading many to speculate and make an unfavourable Dogecoin prediction.
Yet, the future could still be bright for DOGE.
Data suggests that Dogecoin remains a top ten crypto project, with an ongoing foundation and active Board of Advisors, which includes Ethereum founder Vitalik Buterin and Musk himself. Far from its origins as a joke cryptocurrency, DOGE is well placed to ride the next wave of crypto investment and surge in Web3 adoption.
With companies like Tesla, GameStop, Twitch, and the Dallas Mavericks all accepting DOGE payments, it is easy to see why this cryptocurrency still garners a lot of interest from investors.
Their Dogecoin prediction is all about positivity.
As with any form of investment, especially in cryptocurrency, it is imperative that you always conduct due diligence and research before deciding to part with any of your hard-earned cash.
