Category: Crypto News, News

Is Dogecoin a Good Investment in 2024?

By Published On: June 7, 20248.6 min readViews: 600 Comments on Is Dogecoin a Good Investment in 2024?

There are several factors that support the notion of Dogecoin being a good investment in 2024. The meme coin remains one of the most popular cryptocurrencies, it’s currently trading further removed from its ATH than many other major cryptos, and there are hints that Elon Musk-owned X could support DOGE as a payment method in the future.

Dogecoin has been through a tough bear market, dropping by about 78% from its all-time high price in May 2021. Although there have been some recovery rallies along the way, the Dogecoin market has mostly been moving downwards following the big rally in 2021.

However, if we take a look at a shorter timeframe, Dogecoin’s performance has been particularly impressive. DOGE is up 77% since January 1, 2024, which seems solid at first glance. However, many other top cryptocurrencies have performed much better in the same time period. For example, Bitcoin increased by 67% this year, while Ethereum gained 63%.

So, is Dogecoin a good investment in 2024? In this article, we will be taking a look at both the positives and negatives of investing in DOGE in 2024. We’ll also highlight the Dogecoin price prediction based on the current technical analysis factors.

Key highlights:

  • Dogecoin remains one of the most popular cryptocurrencies and has significant potential for a bullish turn in the market in 2024.
  • DOGE is currently trading significantly below its all-time high, which could represent a buying opportunity if the coin rallies again.
  • Elon Musk’s support for Dogecoin continues to be an important factor, with potential plans to integrate DOGE as a payment method on X (formerly Twitter).
  • The Dogecoin Foundation’s efforts to incentivize development and potential moves to a Proof-of-Stake mechanism could enhance DOGE’s usability and appeal.

Reasons for investing in Dogecoin

If you’re looking to invest in cryptocurrency and Dogecoin is in on your shortlist, we’ll highlight a few of the most important factors going in favor of Dogecoin as an investment in 2024. 

Dogecoin is trading well below its all-time highs

The simplest reason in favor of investing in Dogecoin is the fact that DOGE is trading significantly below its all-time highs. Dogecoin reached its historical peak in May of 2021, when the DOGE price hit $0.73. Today, DOGE is changing hands at $0.16, which represents a decrease of about 78% from the all-time high.

Despite this, Dogecoin has kept a strong position relative to the rest of the crypto market, as it is currently the 10th largest crypto asset by market capitalization. In fact, if we exclude stablecoins, there are only 7 other cryptocurrencies that have a larger market cap than DOGE. 

If you’re wondering if you should buy Dogecoin, now might be a good time, as DOGE has shown the capacity to reach much higher prices in the past. While there’s no guarantee that Dogecoin will ever go on a big rally again or reach $1 or above, accumulating some DOGE now is probably a better long-term bet than buying DOGE when it’s already in the middle of a rally.

Elon Musk is a fan of Dogecoin

While Elon Musk has become a more controversial figure recently, it’s undeniable that Elon Musk’s support for Dogecoin is one of the biggest reasons why Dogecoin is where it is today. Without Musk raising the coin’s profile, it would be difficult to imagine DOGE sitting at a market capitalization of $23.2 billion. 

While Musk isn’t discussing Dogecoin on his Twitter account as much as he did before, the billionaire entrepreneur is still occasionally throwing the Dogecoin community a bone. For instance, Musk has hinted that Dogecoin might become one of the supported payment methods on X (formerly Twitter) in the future. 

He most recently shared a cryptic post about Dogecoin in April, which the community recognized as a bullish signal.

The Dogecoin Foundation is incentivizing Dogecoin development

Let’s be honest—most people don’t really care about Dogecoin’s technical background, but invest in and use DOGE as a meme. 

However, it’s still important that Dogecoin provides a good user experience, and allows users to make transactions quickly and cheaply. This would allow DOGE to go viral more easily, and see widespread use for making peer-to-peer transactions. DOGE has already seen some adoption as a currency for tipping internet users for making funny and informative posts.

The Dogecoin Foundation, which was re-established in 2021 to accelerate Dogecoin development and protect the Dogecoin brand, has recently established a Dogecoin Core development fund. This fund is providing DOGE rewards to developers that contribute to releases of the Dogecoin Core software, which allows anyone to run a node on the Dogecoin network. With these incentives, we could see more talented developers get on board with the Dogecoin project.

There have also been some discussions about potentially moving Dogecoin over to a Proof-of-Stake consensus mechanism. This would make Dogecoin much more environmentally-friendly, and could also open up new ways of improving its scalability.

If you’re not sure if you want to buy Dogecoin or not, you can try out how it works by using a Dogecoin faucet and getting a small amount of DOGE for free. You can then transact with the coins using your Dogecoin wallet. 

Reasons against investing in Dogecoin

Of course, there are also downsides to investing in Dogecoin. Let’s take a look at the main reasons why DOGE might not be the best choice for 2024. 

Dogecoin is not particularly innovative

While there have been efforts to accelerate Dogecoin development, Dogecoin is not especially innovative from a technological standpoint. Dogecoin is a relatively straightforward Proof-of-Work cryptocurrency, and doesn’t offer any smart contracts functionality. 

Essentially, Dogecoin’s main proposition is its meme appeal and potential to go viral on social media platforms. In terms of tech, it’s difficult to expect Dogecoin to compete with cryptocurrency projects that are focusing significant resources on development. 

Dogecoin is inflationary

Dogecoin has a built-in inflation mechanism, with 5 billion DOGE coins entering circulation each year. Cryptocurrency investors tend to value cryptocurrencies that have an upper limit on their supply. Some coins even have mechanisms in place that reduce the supply over time.

While inflation will certainly help ensure that there will be enough miners securing the Dogecoin network over the long term, it could also drive some crypto investors away from the project. 

Poor macroeconomic outlook

According to recent surveys, about 33% of economists expect the recession to begin sometime this year. If there will indeed be a global recession, it’s difficult to imagine that extremely speculative assets such as Dogecoin would perform well. In recessions, risky assets tend to suffer as investors move their money into assets that are perceived as safe investments.

Dogecoin price prediction for 2024: What does the year have in store for Dogecoin?

Now that we’ve highlighted the main pros and cons of investing in DOGE, let’s take a look at the algorithmic Dogecoin price prediction from CoinCodex.

According to the current technical indicators, Dogecoin is forecasted to see some minor gains in the coming weeks, before kicking into a high gear and starting to rally later in the summer. The price of DOGE could reach as high as $0.71 by the end of September if our algorithmic prediction is any indication. However, Dogecoin won’t be able to sustain this price levels, and is expected to drop to low $0.30s by the end of the year.

How can I invest in Dogecoin?

Dogecoin is an easily accessible cryptocurrency, as you can buy DOGE on practically all major cryptocurrency exchanges. Arguably, the easiest way to buy DOGE is to use an exchange like Binance, which offers the option of buying Dogecoin with a credit or debit card.

Open an account on Binance

Binance is the world’s most popular cryptocurrency exchange, and lists Dogecoin in addition to hundreds of other cryptocurrencies. 

Create Binance Account

Please note that you’ll have to verify your identity before you will be able to purchase cryptocurrency on Binance. This is the case for practically all cryptocurrency exchanges where you can buy crypto with fiat currency.

Select the Credit/Debit Card option

Go to the “Buy Crypto” menu on top of the Binance user interface and select “Credit/Debit Card”.

Choose your local currency as the “Spend” currency and Dogecoin as the “Receive” currency. Input the amount you want to spend.

Buy Dogecoin with credit card

You will then be asked to add your card details and billing address. The exchange will guide you through the rest of the process. 

Choose how you will be storing your DOGE

After the purchase is complete, you will receive your DOGE coins in your Binance account. Depending on your preferences, you can keep your DOGE on the exchange or withdraw it to a wallet. Keeping funds on an exchange can be risky, as you have to trust that they will be managed properly. If you want improved security, consider buying and setting up a hardware cryptocurrency wallet such as the Ledger Nano S

While purchasing crypto with a credit or debit card is a very convenient option, it comes with relatively high fees. You can purchase DOGE with lower fees by making a deposit to a cryptocurrency exchange and then buying DOGE on the exchange’s spot markets with a limit or market order.

The bottom line: Is DOGE a good investment in 2024?

We can conclude that Dogecoin is certainly not dead, and could be a good investment in 2024 if there is a broader bullish turn in the cryptocurrency market. The coin is trading at a big discount from its all-time highs and still has the support of its most prominent backer, Elon Musk. 

On the other hand, the fact that Dogecoin is trading further removed from its ATH than many other major coins could be a negative sign and an indicator that demand for DOGE is cooling off. Dogecoin also hasn’t made any major moves in terms of its technology.

If you’re interested in meme coins other than Dogecoin, check out our list of meme coins that could explode next

To check how other prominent cryptos stack up as investments in 2024, check the following articles:

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