Dogecoin was the first meme coin and started a whole movement of fun cryptocurrencies, which turned into serious investments and generated massive profits for numerous early investors. But should you still buy the Dogecoin in 2022?
We present some arguments, pros and cons of Dogecoin. Is the time of the meme token over or is it worth buying the dogecoin cheap right now? We give arguments for both sides, so you can decide for yourself.
What is the Dogecoin?
Dogecoin (DOGE) is a cryptocurrency originally developed as a parody of Bitcoin. It was the first so-called meme token. These meme tokens have no specific goal and do not solve a specific problem. They are fun currencies based on the blockchain and should entertain the community.
Surprisingly, the fun turned into much more. Dogecoin was so popular that millions of investors invested in it. As a result, Dogecoin rose massively in value, especially in the 2017 bull market. Even later, DOGE became notorious for massive increases in value and hypes, in which more and more people wanted to buy the fun currency Dogecoin to get rich.
How did meme Tokens Come About?
Dogecoin was the first so-called meme token. The cryptocurrency’s symbol was the Shiba Inu, a popular breed of dog that stands out on the symbol with a confused look. This Shiba Inu has been an internet meme before. Dogecoin capitalized on this hype by making Shiba the symbol for the cryptocurrency. This created a new class of cryptocurrency, the meme coins.
The second great representative of this class was the Shiba Inu. Since an extremely large number of investors wanted to buy the Dogecoin again and again when it recorded massive price gains, another meme token was developed in 2020. The Shiba Inu experienced almost even greater hype than the Dogecoin. In the wake of this, numerous other meme tokens were created. Many of them reported on Tesla founder Elon Musk, who is considered a fan of fun currencies and owns a Shiba himself.
Why did Dogecoin Become so Popular?
Dogecoin quickly gained massive popularity among crypto fans. An important factor was certainly the meme of the Shiba Inu, which stuck in many people’s minds. Furthermore, the Dogecoin was shared on social platforms, which gave it a massive reach. Many people who had nothing to do with cryptocurrencies and the blockchain suddenly wanted to buy the Dogecoin.
Furthermore, it turned out that Dogecoin had a lot to offer technically. It uses the proof-of-stake consensus mechanism, which has been considered more efficient, energy-saving and environmentally friendly than proof-of-work, especially in recent years. This is used by Bitcoin. The aforementioned Elon Musk in particular showed himself to be a fan of Dogecoin and even asked him to use it as a means of payment for his companies.
How has the DOGE Price Developed in the last 12 Months?
As we have already mentioned, numerous DOGE bull runs have resulted in massive price gains in recent years. Again and again, the value of Dogecoin could increase extremely. The price gains within these bull runs regularly left “normal” cryptocurrencies behind in percentage terms. Hypes weakened, but the DOGE was able to establish itself among the valuable cryptocurrencies by market capitalization even in bear markets.
A changeable course in the last 12 months. After a massive run in the first quarter of 2021, the Dogecoin was also hit hard by the major spring correction, falling almost 75% in the coming weeks.
Since then, we have seen only a very small increase for Dogecoin in the fall, although the prices of other cryptocurrencies have exploded. The price of Dogecoin also fell less in the first quarter of 2022 than the coins described. At the moment, Dogecoin is scratching the top 10 cryptocurrencies by market capitalization (11th place as of the end of April 2022).
Is it worth Buying Dogecoin in 2022?
Dogecoin’s tame performance over the past 12 months raises the question of whether dogecoin is still worth buying in 2022. Can we see the massive rallies again or is Dogecoin’s time over now?
Pro Dogecoin Reasons
Dogecoin has established itself as one of the most popular and also most stable cryptocurrencies. As early as 2016, Dogecoin made it into the top 10 cryptocurrencies by market capitalization for the first time. Dogecoin is an integral part of the community. In recent years, Dogecoin has proven again and again that the Dogecoin can increase in value massively in a bullish market situation. Famous people like Elon Musk are fans of cryptocurrency.
Due to a long time at the top, it is very unlikely that the Dogecoin will no longer be bought. Even in times when the Shiba Inu had a lot of hype, Dogecoin was able to post profits.
Furthermore, the risk with meme coins is generally high, but the possible profit is massive. However, the risk is lower with the established Dogecoin than with the Shiba Inu, for example. However, there is little to prevent the DOGE from becoming bullish again in the coming months.
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Con Dogecoin Reasons
However, there are also a few reasons not to buy Dogecoin anymore. The performance in the last 12 months shows that the DOGE was no longer able to make a massive price jump in the last bull run in autumn. Other cryptocurrencies such as Solana, Avalanche or Shiba Inu made much larger jumps in percentage terms.
The Shiba Inu in particular is a good alternative. Meme coins are risk investments that, according to many experts, should make up around 10-15 percent of the crypto portfolio. Here it is worth betting on a specific currency. The Shiba Inu might work better as a high-risk investment, given its much higher percentage gains of late.
Should you buy the Dogecoin now?
Buying a coin remains a personal decision. At the moment, the prices of almost all cryptocurrencies are low in the long term. Therefore, you should basically not go wrong with an investment.
But whether you prefer to invest in the Shiba Inu or in other projects that have a real benefit remains an extremely personal decision. However, when a meme token rises massively again and triggers a huge hype, it is probably too late again and the big returns could fail to materialize.