Memecoins
Dogecoin Decoding: Is the Meme Coin Worth a Serious Investor’s Time?
Investors are still waiting for the next major Dogecoin rally. Will it ever come?
In the cryptocurrency market, there is arguably no more polarizing topic than Meme parts. Simply put, you either love them or hate them. Some see them as a fun get-rich-quick opportunity, while others see them as speculative investments with no real value.
This is true even for meme coins with multi-billion dollar market caps, such as Dogecoin (DOGE -4.63%). This dog-themed meme coin has been around since 2013 and now has a market cap of over $17 billion. Dogecoin Do they deserve a place in your portfolio or not?
Dogecoin is no longer the strongest dog
Until Shiba Inu (SHIB -7.36%) Launched in August 2020, Dogecoin has reigned supreme as the leader of the meme coin universe. When people talked about meme coins, they talked about Dogecoin. Dogecoin has accumulated a huge amount of public goodwill during this period, and during the latest bull rally in the cryptocurrency market, it even attracted the support of billionaire Elon Musk.
Image source: Getty Images.
But Dogecoin isn’t the most popular dog anymore. There are thousands of meme coins to choose from. There are meme coins for celebrities, meme coins for presidential candidates, and meme coins for just about any type of animal you can imagine. Even if you want to invest in a “classic” dog-themed meme coin, you’re spoiled for choice.
Dogecoin’s best days are behind it
Simply having more meme coin choices wouldn’t be such a big deal if Dogecoin continued to perform exceptionally well. But the sad fact is that Dogecoin’s best days are behind it. In its 10-year history, it has never broken above $1. Aside from a brief spectacular run in 2020-2021, Dogecoin has disappointed investors, time and time again.
Just look at this chart of Dogecoin’s performance over the past five years. Dogecoin’s price peaked in May 2021, when Elon Musk appeared on NBC’s Saturday Night Live. In one of his comedy sketches, the so-called “Dogefather” jokingly admitted that the meme currency was nothing more than a “scam,” and Dogecoin’s price never recovered.
Sure, there are occasional signs that Dogecoin could be making a comeback. But just look at Dogecoin’s performance this year, amid a new meme coin rally in the cryptocurrency market. Dogecoin is up 32%, but Shiba Inu is up 60%. Grandpa (PEPE -10.02%) — a frog-themed meme coin — is up 692%. And dog hat (Wireless -12.83%) – another dog-themed meme coin – is up 1,171%.
All of these cryptocurrency competitors have a market cap of $2 billion or more, so it’s not that easy to dismiss them. Yes, they have ridiculous mascots and names. But if your only goal is to “get rich quick,” they’re probably better options than Dogecoin right now.
Is there a serious reason to invest in Dogecoin?
When it comes to meme coins, be careful when chasing performance. It can be tempting to invest in a meme coin that skyrockets in value. But meme coins can drop to zero overnight and should not be part of a long-term portfolio. If you intend to invest in meme coins, you should be prepared to lose everything. Just think of all the Dogecoin investors who bought at the market peak at $0.74, only to be stuck with an investment that is currently worth just $0.11.
That being said, there is one scenario in which Dogecoin could be worth a serious investor’s time: if Elon Musk ever decides to bank on Dogecoin in his businesses. For example, in March, there were hints that he might consider making Dogecoin a payment option for You’re here electric cars. And, early last year, speculation began that Elon Musk might be ready to make Dogecoin a payment option on social media platform X.
But, as is often the case with meme currencies, the buzz and speculation are far more entertaining than the day-to-day reality. Until something changes drastically with Dogecoin, it’s best to look elsewhere for a cryptocurrency investment opportunity.