Stock Analysis & Ideas

Dogecoin: $1 Price Target is Realistic

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The skeptics will call Dogecoin a joke token, but they don’t appreciate just how far this little crypto coin has come during the past decade. Besides, support from a famous automaker CEO could help Dogecoin reach the all-important $1 level someday.

Dogecoin is a sub-penny cryptocurrency with a price that has a decimal point and lots of zeros. However, it’s also a grassroots movement, and the token has the potential to reach $1 eventually. I am bullish on Dogecoin.

The Dogecoin cryptocurrency is an altcoin with a picture of a Shiba Inu dog on the front. That’s why there’s a “Dog” in the name Dogecoin, though it’s typically pronounced “DOJE-coin” with a long “O” sound. It doesn’t matter how you pronounce it, though, as long as you understand what the token is about before jumping into the trade.

As the Dogecoin developer team claims it’s the “people’s cryptocurrency,” we can start to discern not just a meme coin but a full-on grassroots movement. There’s something special about Dogecoin as it has a loyal following of fans that could legitimately be called a community.

Granted, a low-priced token like Dogecoin is bound to be volatile, so it’s not an asset you’ll want to pour your entire account into. Still, the dream of Dogecoin reaching $1 is more than just a fantasy, as the crypto winter could lead to sunny days ahead and unexpected wealth for well-timed investors.

Dogecoin Starts as a Meme Token but Gains Legitimacy

Many assets start from humble beginnings, but how many of them actually began as a joke? Dogecoin started that way, and it’s amazing to consider that it has persisted and grown in popularity over the years. Reportedly, Billy Markus and Jackson Palmer created Dogecoin back in 2013. They were software engineers who wanted to create a payment system as a joke, and apparently, Dogecoin was meant to poke fun at crypto-market speculators.

Yet, today the joke’s on the skeptics who didn’t believe Dogecoin would last. It’s a serious crypto coin with its own ecosystem in the 2020s. The developers recently launched Dogechain, a dedicated platform for Dogecoin. This platform will facilitate the development of games, decentralized applications (dapps), decentralized finance (DeFi) applications, and even nonfungible tokens (NFTs).

Thus, Dogechain and Dogecoin offer utility and are not just fun for investors dreaming of huge gains. Indeed, the developers have strenuously insisted that Dogecoin has a variety of use cases. Increasingly, Dogecoin has shown up as a payment option in online stores.

The developers proudly point out, “Shops can also integrate directly with the Dogecoin blockchain, in particular through the JSON-RPC interface.” Moreover, the Dogecoin Foundation and some developers plan to create libraries that will streamline and standardize implementations for Dogecoin.

Elon Musk Supports Dogecoin as a Payment Option

When Tesla (TSLA) CEO Elon Musk speaks, people pay attention. He’s a controversial figure, but Musk certainly knows how to generate publicity. So, it’s bullish for Dogecoin that Musk evidently views the crypto coin as a legitimate payment option.

It’s not all talk, either. Musk is actually willing to adopt Dogecoin use within his own businesses. For instance, Musk announced last year that Tesla would accept Dogecoin as a payment method for Tesla’s merchandise. Clearly, Musk wouldn’t allow this if he thought that Dogecoin didn’t have any real value.

Yet, Tesla isn’t the only Musk-founded company that’s apparently accepting Dogecoin payments. Space-flight pioneer SpaceX and tunnel company Boring will also reportedly accept Dogecoin. Musk is certainly making a powerful statement by allowing three of his businesses to receive Dogecoin payments.

Furthermore, Musk reaffirmed his loyalty to the community during the broader cryptocurrency price dip in June when he stated that he “will keep supporting Dogecoin.” Then, in July, Musk assured, “We have not sold any of our Dogecoin.” By “we,” Musk may have been referring to himself and some or all of his businesses.

The Dogecoin Community Looks Unstoppable

Dogecoin’s use cases can help it to gain legitimacy, while Musk’s ongoing support could enhance the coin’s publicity and recognition. Just these contributing factors might be enough to bring Dogecoin into the $1 range at some point. Ultimately, though, it’s the community surrounding Dogecoin that will push the token’s value higher. Dogecoin’s followers are loyal, and together, it looks like they’re unstoppable.

If you can believe it, the official Dogecoin Twitter (TWTR) account has 3.4 million followers. This account’s tweets each receive hundreds or even thousands of likes. Along with the official account for Dogecoin, there are also many unofficial fan accounts dedicated to Dogecoin.

To help keep the community involved and active, the Dogecoin developers continually keep the users and investors in the loop. They provide a sense of fun, anticipation, and excitement with tweets like:

“This has been an exciting week for #Dogecoin! Core received a significant upgrade & the new http://Dogecoin.com website was revealed with the addition of the Dogepedia page launched to help fight the FUD! Drop your best memes of the week below celebrating these achievements!”

Imagine an official wiki page dedicated to Dogecoin. Clearly, this little coin and community have made tremendous progress since 2013. It’s this sense of community, fun, and purpose that will help maintain Dogecoin’s value during crypto-market downturns, which are bound to happen from time to time.

Conclusion: Should You Consider Dogecoin?

While Dogecoin is likely to remain volatile, it also has great promise. As Dogecoin’s popularity grows, the $1 price target will only become more realistic. So, feel free to make a small investment in Dogecoin if you’re willing to accept the volatility risk. Just know that you’ll be part of something bigger than a cryptocurrency, as there’s a movement behind Dogecoin, and they’ll be glad to have you join it.

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