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DOGE grows for the third week in a row — will the token jump from $0.7 to $1 soon?

Andrew Zhoao

News editor

Jan 10, 2023 at 05:33

Dogecoin hit a three-week high at the beginning of the week on January 10 (from $0.06709 in the middle of December to $0.07697 in mid-January). In addition, the token still retains its status as the best meme coins by market cap, according to CoinMarketCap, but the asset has more and more competitors. 

What helps DOGE keep top status so far, what will happen to the price next, and whether rivals have a chance to overtake Elon Musk’s favorite crypto — let’s discuss this further.

Good boy’s rally: DOGE’s rises over the past 3 weeks

Usually the rise of the coin was associated with Elon Musk, who often mentions the coin in the context of his projects [in December, responding to a question about whether Twitter plans to accept payments in crypto, Musk answered briefly: “DOGE to the Moon,” raising the token value from $0.127 to $0.1425 (12,2%)]. Then the reason for the latest burst was that the entire crypto market suddenly rose after a long stagnation. 

Also the coin is affected by what is happening in the U.S. economy:

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  • increase in the value of Bitcoin, which for the first time since December 16 broke the $17K mark, causing the prices of other cryptocurrencies to rise
  • a report released by the Federal Reserve Bank of New York’s Microeconomic Data Center shows that short-term or annual inflation expectations continue to decline (the Federal Reserve plans to lower it to 2% from the current 5%).

Current price 

At the time of writing, Dogecoin is trading at $0.07697 per coin, down 0,48% from 24 hours earlier and up 7,22% from a week earlier. As for the market capitalization of DOGE, according to CoinMarketCap, it is currently equal to $10.22B, making the token the ninth largest token. At the same time, it is behind Cardano ($11.02B) and ahead of Polygon ($7.41B). 

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The historical high of the token came on May 8, 2021, again after Elon Musk publicly supported the coin, then you can buy DOGE for $0.682. Compared to the current value, the difference is almost -800%. 

It has been ten years since DOGE was created (initial release: December 6, 2013), but the token has never risen above $1. 

Can Dogecoin reach $1 in 2023? 

All coins were once worth $0, but most of the most popular, one way or another jumped above $1 and even more. While Polygon (current price is $0.8401) crossed that mark in May 2021, and Cardano (current price is $0.3142) in January 2018, the exception to the current top is Dogecoin. One has to agree, hanging out with the best without crossing the fancy barrier is not cool, so it’s interesting to see if and when DOGE will jump higher than $1.

According to analysts at The Motley Fool, two conditions must be met for the token to soar above $1 in 2023: 

  1. Recovery of the entire crypto market. The year is off to a good start, and the overall growth of cryptocurrencies is noticeable, but whether this will continue is still unclear. If yes, it will be one of the drivers for DOGE to get closer to the desired goal.
  2. The influence of Elon Musk (integration with Twitter). Fuel for the takeoff of Dogecoin. As soon as a businessman says something about the coin, its value changes. And we saw both, a positive effect when the token grew (Musk became the head of Twitter), and a negative one (Musk said that he can leave the position of CEO of the social network). 

Experts say that if the coin is worth $1, this would increase its market capitalization to $132B, making DOGE third in this parameter after Bitcoin and Ethereum. However, this is unlikely because of the risks and speculation that occur with memecoins.

According to Steve Hanke, a professor of applied economics, founder and co-director of the Institute for Applied Economics, meme coins have no fundamental value and are merely vessels for money laundering and a pump-and-dump scheme. 

 

Therefore, currently this is unlikely, at least until such tokens become safer. However, as far as the technical aspect is concerned, some steps are already being taken in this area. 

What makes DOGE unique? 

However, despite the fact that DOGE has not yet crossed the $1 mark, the coin is still loved. Communities associated with the coin are developing it and offering their own options. One of them was proposed by the Dogechain community, creating the platform of the same name. Here is what it can do: 

  • Dogechain is a scalable smart contract [a computer protocol that allows to perform transactions and control their execution with the help of mathematical algorithms] platform for dApps.
  • This allows DOGE to be used for transaction fees. Also, the token can be used in DeFi, blockchain gaming and NFT.
  • In simple terms, users can provide Dogecoin liquidity to decentralized exchanges (DEX). The coin is used to convert to cash or other coins, and the user receives money on the transaction.
  • And creators can use DOGE for NFT minting [is publishing a unique digital asset on a blockchain so that it can be bought, sold, and traded].
  • Coin holders can lend Dogecoin and thus earn passive income [some coins are blocked on the exchange and used at the request of the platform, for which users receive money].

Sounds good, especially if you take into account the fact that it is “just a meme coin”. That’s why it seems possible that with such developments, the coin will break the bar of $1. 

DOGE’s rivals 

The CetoEX crypto service account published a poll to find out which dog coin will be at the top in 2023. And according to the results, the fight for the role of the leader in a dog flock has already begun. So: 

  • first place went to another meme coin Babydoge Coin, which received 63,2% of the vote, and was predicted to succeed back in 2022 [That was on June 9, 2022. Since then, the coin has dropped in value from $0.000000001453 to $0.0000001044 (~40%)];
  • second place went to Shiba Inu (22,9%), which has long claimed the place of Dogecoin;
  • as for the third position (8%), there is a very promising Bonk Inu token, which grew in value by 4444% in 12 days;
  • Dogecoin, on the other hand, was only in fourth place — at 5,9%.

Do you think Dogecoin has any chance of exceeding the $1 bar, and should it be wary of other meme coins? Feel free to write about it in the comments. 

By the way, a very smart cat can compete with dogs as of late.

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