Why DOGE Will Never Get That Level Of Hype Again And Why It Won’t Hit $1

The biggest and most significant meme cryptocurrency, Dogecoin (DOGE) is generally considered aleading indicator of the wider crypto markets in that any movement shown by DOGE tends to quickly reflect in the rest of the market.

While Dogecoin started as a parody cryptocurrency for the rest of the crypto market, it has quickly established itself as perhaps the favorite cryptocurrency of one of the most influential people in the world, SpaceX and Tesla CEO, Elon Musk.

Musk’s tweets on Dogecoin are no secret as the billionaire businessman has, time and again, publicly endorsed the meme cryptocurrency through memes, tweets, and even via an appearance on Saturday Night Live.

DOGE Will Never Get That Level Of Hype Again
(Source: Twitter)

In this article, we will delve into why DOGE will likely never get the hype it has garnered in the past and why the famous $1 price target of DOGE holders might just be a lost cause.

Reasons Why Dogecoin Will Never Reach $1

There are many reasons that DOGE is likely to fall far below expectations.

No Utility Whatsoever

Despite its charm and memes around it, people need to come to terms with the fact that Dogecoin has absolutely no utility at all.

Unlike advanced projects like Bitcoin, Ethereum, and Polkadot, there was no serious long-term vision to achieve with the launch of Dogecoin.

DOGE is literally virtual tokens based on a Shiba Inu, and that is it. There is no sustainable revenue-generating protocol design powering Dogecoin that could change it into a force to reckon with in the crypto industry.

No Maximum Supply

Unlike Bitcoin’s hard supply of 21 million, Dogecoin is an inflationary cryptocurrency without any ceiling to its total supply.

dogecoin supply
(Source: Mark R. Hake, CFA)

Sure, Ethereum’s native cryptocurrency Ether does not have a maximum supply either. However, comparing Ethereum with Dogecoin is hardly fair as the former is a multi-billion-dollar protocol that powers several landscapes within the crypto industry such as DeFi, NFTs, and others while Dogecoin is primarily traded for price speculation.

The “Same Horse” Theory

According to Joshua Enomoto, Founder of Enomoto Business Media, the same horse theory could be the biggest obstacle preventing Dogecoin from reaching its highly anticipated $1 price target.

Mr. Enomoto explains the same horse theory in Dogecoin’s context, saying:

“Although you can never say never in the cryptocurrency market, Dogecoin is unlikely to generate the level of hype witnessed earlier this past May primarily because of the “same horse” theory. For one thing, when everyone bets on the same outcome, the rewards distributed should the wager pan out will be necessarily limited. Also, when wide scale hysteria takes over, it’s possible that the masses have become blinded to risk factors. For instance, the failure of Workhorse (NASDAQ:WKHS) to secure the U.S. Postal Service’s contract to replace aging mail carriers serves as a warning against investing without objective due diligence.”

He adds:

“Secondly, it’s unclear what advantage Dogecoin levers against competing altcoin networks which also feature high transaction speeds and efficiency. As well, mainstream investors who are now tuning into cryptocurrencies will likely avoid parody-driven blockchain projects for serious endeavors such as Ethereum.”

As you might infer, when everyone is betting on the same outcome, the eventual reward — assuming the event plays out in favor of the crowded trade — becomes heavily diluted. This, combined with the fact that almost 10,000 DOGE is added to the Dogecoin total supply every minute makes a $1 DOGE a far-fetched dream.

No Institutional Backing

Although Dogecoin enjoys Musk’s support, there is literally not a single financial institution that is long-term bullish on DOGE.

The vast majority of crypto-native VC firms today pour money into DeFi and NFT projects due to their utility and potential to change the way we manage our finances or collectibles.

Similarly, banks and other financial institutions are slowly warming up to major cryptocurrencies such as Bitcoin and Ether due to their properties as a hedge against inflation and having immense utilities, respectively.

Dogecoin offers neither of the two. In fact, the network adds a significant amount of DOGE into its total supply every single day, pushing it to more than 5 billion DOGE every year and making it extremely inflationary in nature.

Taking into consideration all the aforementioned points, the moon might just be a little too far out of reach for Dogecoin. Until then, let us continue to find joy in the DOGE memes.

elon musk dogecoin tweet
(Source: Twitter)
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