Some questions are as old as time. What’s the meaning of life? Why do people like cilantro? And of course, will Dogecoin (DOGE-USD) ever reach $1?
When it comes to the third question, anyone familiar with the wild world of crypto knows it’s nearly impossible to answer.
While the idea of a digital currency based on a dog meme being worth anything substantial might be ridiculous to some, it is worth remembering that the crypto space has experienced extreme cycles of hype (before and after just as extreme bear markets) and that in the previous round, at its peak, DOGE had a market cap above $75 billion and was worth almost $0.74.
So, maybe the question should not be “will Dogecoin ever reach $1” but “is it worth investing in it based the potential for it to do so?”
If you ask top investor Neil Patel, the answer is a resolute “no.” Dogecoin is currently worth $0.10, representing an 86% drop from that peak reached at the height of the previous crypto cycle in May 2021. So, it would need to do a 10x from here to actually reach $1.
In any case, while anything can indeed happen in the cryptoverse, Patel’s view is that it is unlikely to reach those giddy heights. “There needs to be strong demand for people to want to own Dogecoin in their portfolios,” the 5-star investor says. “I’m not sure if this will happen in a meaningful way.”
And while the perception of Bitcoin, for instance, has changed substantially over the years, with it now seen as a “legitimate financial asset” valued for its “decentralized nature and fixed supply cap,” there’s slim chance of that happening with Dogecoin. With 145 billion tokens in circulation, and swelling by 10,000 every single minute, it “couldn’t be further from Bitcoin’s level of scarcity.”
On the plus side, Patel applauds the strong community that has coalesced around the coin, but that is just not enough to justify investing in it. “I believe it has virtually no utility,” Patel goes on to say. “And it doesn’t have that many developers working on advancing the network. This doesn’t bode well for its long-term viability. Eventually, the market might start to question if Dogecoin should even exist.” (To watch Patel’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
