Has Dogecoin lost its bite? Or is it regaining strength?
the main points
- The popular meme coin is getting a facelift with a new website and new, easy-to-use technology building blocks.
- Dogecoin struggled to regain its highest price in May, despite Elon Musk’s tweets.
Dogecoin’s (DOGE) massive 3500% annual increase wasn’t enough to make it one of the best performing cryptocurrencies in 2021, but the popular meme coin attracted the most attention. It was the most searched cryptocurrency in 2021, according to Google Trends.
The pet currency reached an all-time high on May 8, after which it lost its value and has been struggling to gain momentum ever since. Can Dogecoin remain the dog of choice for cryptocurrency in 2022? Here are five predictions about Dogecoin for the coming year.
1. Dogecoin will get a facelift
The Dogecoin Foundation published its “Roadmap” at the end of December. The roadmap is similar to a roadmap but less strict, in keeping with Dogecoin’s community-driven and consensus-driven approach. Here are some important elements of the new plan:
- Dogecoin.com redesign. This will include a complete list of frequently asked questions about Dogecoin, dubbed “Dogepedia”.
- Create a new technical standard for Dogecoin. This will make it easier for new developers to work with Doge. In addition, a new library of building blocks will help those who want to build Dogecoin products.
- GigaWallet. The organization wants retailers and exchanges to be able to integrate Dogecoin without any hassle. To this end, the team is working on a GigaWallet that can be set up in seconds.
The motivation behind it all is that the more useful a currency is, the more people will use it. And the more people use it, the more likely Dogecoin will become a global currency.
2. Elon Musk will continue to tweet on DOGE
The self-proclaimed godfather has been constantly pumping Dogecoin on social media. The billionaire is unlikely to stop tweeting about his pet coin next year. He believes that Dogecoin is the cryptocurrency for people and that it is easier to spend Dogecoin than Bitcoin (BTC).
Musk’s tweets were a major driver behind Dogecoin’s success. Musk even mentioned Dogecoin in his Saturday Night Live appearance – which is a big part of the reason for the coin’s rally in May.
3. More merchants will accept DOGE
According to Cryptwerk, around 2,000 traders are currently accepting Dogecoin while taking around 7,700 Bitcoin. This number is increasing. Musk’s Tesla announced in December that it would accept DOGE for payments for goods. AMC Theaters, which began receiving payments in a handful of cryptocurrencies at the end of 2021, says it will open the doors to Dogecoin and Shiba Inu (SHIB) payments around March 2022.
Last summer, billionaire crypto enthusiast Mark Cuban tweeted that Dogecoin is a way for people to pay. He said people are spending thousands of dollars at DOGE in a Dallas Mavericks store. Unlike Bitcoin, which people tend to hold in the hope that it will appreciate in value, Cuban says people are more comfortable spending DOGE. Dogecoin is also available on most cryptocurrency exchanges.
4. Other coins for pets will nibble at Dogecoin’s heels
The whole phenomenon of meme coins is very new. This trend of pop culture crashing into financial investing only took off in 2021. And while Dogecoin’s success has shown it can’t be ignored, it’s hard to know what might happen next.
However, the proliferation of pet coins means that Dogecoin can expect more competition in the future. Especially since meme coins tend to make sudden price jumps, often for unexpected reasons, pushing them to the top of the crypto charts. We saw this late last year when Shiba Inu briefly outperformed Dogecoin.
Dogecoin’s ability to stand up to impersonators depends a lot on whether the coin can regain any momentum. It has a loyal community of followers. But it is difficult for it to maintain its anti-establishment reputation while also occupying a place in the list of the top 20 cryptocurrencies by market capitalization. You cannot continue to be the underdog once you have succeeded.
5. Dogecoin will continue its trademark battle
Another issue Dogecoin needs to address is its trademark registration. Since Dogecoin was originally created as a joke that was not meant to serve any purpose, the founders did not trademark it. Many Dogecoin imitators now want to own this brand. One in particular, Moon Rabbit, registered a company called the Dogecoin Foundation and purchased the domain doge.org.
It will be interesting to see how this will play out in 2022. Creating a strategic direction for DOGE on the back of its popularity is an entirely different matter, and claiming legal ownership of the brand years after its launch would be an entirely different matter.
Is there life in the old dog yet?
Dogecoin is still among the best cryptocurrencies, but it may not be able to maintain its position. If you bought $1,000 of DOGE at the beginning of 2021, you would have about $34,000 today. This is unreasonable. But if you bought $1,000 at an all-time high in May, you would have only $216 today – a loss of nearly 80%.
Dogecoin Foundation Reform and 2022 Goal Setting Must Be good signs. And perhaps the new website and technical work to ensure Dogecoin is accepted by more retailers will give DOGE a much-needed boost.
What is worrying is that so far, these positive strategic moves have not had a significant impact on the price of Dogecoin – the main drivers remain its community and tweets from Elon Musk. Unless Musk appears on another popular TV show and talks about Dogecoin, it’s hard to see how he can get his highs back.
Although, if there’s one thing we’ve learned in the past year, it’s that Dogecoin often succeeds against odds. Personally, I wouldn’t buy DOGE because I think there are many more exciting cryptocurrency projects out there. But I wouldn’t write it off either.
Buy and sell cryptocurrencies on an exchange chosen by experts
There are hundreds of platforms around the world waiting to give you access to thousands of cryptocurrencies. In order to find the right feature for you, you will need to decide which features are most important to you.
To help you get started, our independent experts have tested the options to bring you some of our best crypto exchanges for 2021. Check out the list here and start your crypto journey, today.