Tesla CEO Elon Musk’s favorite cryptocurrency, Dogecoin (DOGE) is back on the radar of investors seeking the next crypto to explode. Dogecoin's price is soaring and has accumulated gains of 40 percent in the past 24 hours. The meme coin still trades under $1. Why is Dogecoin going up and what’s the price prediction?
Dogecoin wasn’t meant to be taken seriously. It was just an online joke about cryptocurrencies. However, it has become a great investment for some people. It has also inspired the rise of multiple other meme cryptos.
The other meme cryptos include Shiba Inu, Kishu Inu, Floki Inu, and Baby Doge. Shiba Inu, which recently got to eToro and now awaits a Coinbase listing, has declared itself the "Dogecoin killer." If you’re wondering whether Doge is still a good investment amid the growing competition, you might want to get to the bottom of why the altcoin is sprinting now to help assess its price prediction.
Why is Dogecoin going up?
Doge’s latest surge is due to a series of factors. The Senate’s infrastructure bill caused broad selling in cryptocurrencies over tax fears. The concerns still remain but at least it also pleases crypto investors that lawmakers appreciate that the crypto sector can make an important contribution to the economy. In this view, many investors are buying the dip and Doge is among their favorite picks.
Merchant acceptance as payment has greatly contributed to Doge’s popularity. After AMC Theatres announced its plans to accept Bitcoin for ticket purchases, many fans hope that it will also accept Dogecoin in the future. Some investors are rushing to buy the meme token in anticipation of AMC Theatres and other businesses like Amazon accepting it.
Another boost to Dogecoin's price has come from Chainalysis adding it to its crypto coverage. Not only is Chainalysis coverage a credibility boost to Dogecoin, but it also promises to expose the crypto to more institutional investors.
How high can Dogecoin go?
The highest price Dogecoin has hit in 2021 is about $0.74. Doge fans have been rooting for the $1 price milestone. There have been campaigns on TikTok and events like Dogeday 420, but reaching $1 has remained elusive. Fans think that hitting the $1 price milestone would change the perception of the meme coin and unlock its potential as an investment.
Although Dogecoin’s supply isn’t capped like Clover Finance or Ripple (XRP), it has a controlled inflation rate. Only a certain number of Doge tokens can be generated in a year. That makes it a little more attractive than competing meme cryptos like Shiba Inu to inflation-averse investors.
Doge price prediction and what it could be worth in 2025
Dogecoin’s rebound is bringing a renewed interest in its price outlook. Many Doge fans hope to become millionaires when the altcoin reaches $1. Since January, the crypto’s monthly gains have averaged 750 percent.
Even if Dogecoin grows at a monthly rate of 75 percent on a compounded basis, the price could hit $1 before the end of 2021. However, Doge's price reaching $1 in 2021 would be challenged by attempts by some investors to take early profits. If growing at a monthly compounded rate of 10 percent, Dogecoin could be worth more than $10 before 2025.