The market value of Dogecoin has had massive ROI (Return on investment) in recent years, leaving people to wonder whether it might be too late to buy. Some early investors are at the forefront of encouraging newcomers to buy, while others recommend skipping crypto investments altogether.
Dogecoin is highly volatile and highly dependent on social media hype. On the one hand, online excitement helps fuel price gains, but on the other hand, its sentiment dependency can flip market gains to buyers with losses.
Is Dogecoin Booming?
With more people adopting cryptocurrency, a continued rise is likely as the coin steadily gains momentum in the crypto space. However, a prompt to consider is its basis on market speculation that the coin will keep getting expensive.
Before buying Dogecoin, here are some helpful trends to consider.
Social Media Hype
In mid-April and early May, a crowdsourced “Doge Day” media hype helped fuel price gains. Dogecoin enthusiasts like Elon Musk have also contributed to an increase in Dogecoin prices through posting funny memes on Twitter.
In turn, Dogecoin’s prices fluctuate from its demand and supply. This means that the more buyers there are, the more expensive the coin is. Google Trends charts also show direct correlations between Dogecoin-related searches and an increase in its value.
These trends motivate Dogecoin investors to encourage others to invest in the coin. The more people adopt and use DOGE, the more valuable it is. This provides a good incentive not to shy away from investing.
The price of Dogecoin has been on a steady increase since its conception. It had generated an ROI of 659,873% from it’s all-time low price of $0.0000869.
To put it into perspective, an investment made a year ago would have had a 22,412% return. Its price increase was steeper than bitcoin, making a whopping 520% in April.
Currently, DOGE trades at $0.20 with a 24-hour volume of $99,338,181. Its price is expected to increase with the growing popularity of meme coins in the crypto space.
Bitcoin has dominated the crypto market for years now. A new buyer who wants to invest in Dogecoin can therefore compare cryptocurrencies with the future market shares of bitcoin.
Today, bitcoin is being accepted as a form of payment by popular companies. These include global payment firms like Paypal and major Wall Street banks like Goldman Sachs. In March this year, BitPay, the world’s largest cryptocurrency payment service, announced that it would be accepting DOGE payments.
Though not quite there yet, Dogecoin is slowly catching up by mimicking bitcoin’s market trends. For instance, it reached an all-time high of $0.75 in May when bitcoin reached its all-time high of $63,500.
Should you Invest in Dogecoin?
It is always a high risk to invest in Dogecoin or any other cryptocurrency. However, with greater risk comes higher expected returns.
With Dogecoin’s growing popularity, more people will continue to adopt and use Dogecoin, fueling price gains. Considering its volatility and fluctuating market prices, it is always good to invest not more than you can afford to lose.