Widely known as the original memecoin, Dogecoin remains one of the largest cryptocurrencies in the world by market cap. However, the coin has definitely seen better days: the price of DOGE has fallen about ten times from the all-time high level. While it seems to recover now, there are experts who do not believe in the coin anymore and claim investors should sell it to avoid losses. But is that true? In this article, we’re going to give you several pros and cons of Dogecoin as an investment option.
What is Dogecoin
Even if you don’t know why Dogecoin is so popular, you’ve still probably heard about it. However, the world-famous cryptocurrency actually started as a joke: in 2013, two software engineers invented it by simply combining a slightly altered version of the Bitcoin code and Doge, a popular meme at the time, to create a somewhat satirical project. However, people actually started to invest in Dogecoin, making it extremely popular and bringing the coin about $90 million in market cap.
In 2017, both of the original founders left the project, but it continued to grow. The value of DOGE was under just $2 in 2020, but it exploded in the next year, reaching almost $270 by May 2021. One of the reasons behind that surge was a sudden increase in popularity: many people believed that a coin with no apparent goal other than to be sold at a higher price should grow almost indefinitely, but they were wrong: its price has plummeted down to about $30 in 2022.
The fall was unpredictable and left many investors asking themselves: should I sell my Dogecoin right now or wait for the next trip to the moon? And the question isn’t simple.
There are actually several reasons to sell DOGE for good. The project develops very slowly, and there are many coins on the market that have much more advanced features. Dogecoin is a memecoin, and its demand largely depends on hype, not on real applications. That means it’s inherently volatile, so its price may still fall.
However, there are also reasons to believe in DOGE. The project has a strong community and several celebrities backing it: for example, Elon Musk mentioned it several times, attracting a lot of attention. It is listed on major crypto exchanges and remains among the most widely used coins, and its price has started recovering already, so there are good chances it will be extremely valuable again.