Dogecoin (DOGE): What Is The Price Prediction In 5 Years
✍️ 14 December, 2022 - 7:59 👤 Editor: Jakub Motyka
- The meme token Dogecoin (DOGE) could double its value in the next five years, according to some predictions.
- However, there are risks with holding the meme token DOGE: infrequent network upgrades and concentrated ownership are the main ones.
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According to experts, Dogecoin (DOGE) price could rise to $0.2058 in the next five years – double the current value. The meme token could trade at $0.15 on average in the period, an increase of 50% from the current value. At press time, DOGE had rallied 25% in one week to December 1 to $0.1029 – according to data from CoinMarketCap.
The latest price movement in DOGE has boosted its market capitalization to $13 billion, currently ranked #8 in the crypto listing. In addition, the asset has increased by 66% in the past three months. Most recently, DOGE climbed 144% to a high of $0.0597 between October 25 and November 1. But, what is the price prediction for Dogecoin (DOGE) in 5 years?
What Is Dogecoin And What Are Its Use Cases
Dogecoin operates as a Proof Of Work (Pow) consensus digital asset that incentivizes nodes to secure the network through mining. The project was initially copied from another cryptocurrency named LuckyCoin – also forked from Litecoin (LTC).
Although DOGE started as a joke- mocking big cryptos like Bitcoin- it quickly attracted the attention of the internet community. The cryptocurrency also gained use cases in online tipping and payments among merchants like Tesla and AMC. There are also speculations in the crypto space that the digital currency could be used on Twitter for payments after Elon Musk – a popular DOGE enthusiast – acquired the social media company.
Dogecoin produces faster blocks than Bitcoin. The speeds were boosted when Litecoin developer Charlie Lee proposed to Dogecoin developers that they merge mine Dogecoin and Litecoin – to allow miners of both cryptocurrencies to mine the tokens simultaneously.
Risks Of Holding Dogecoin
That said, holding DOGE is not without risks. First, it has an unlimited supply, meaning it cannot surge in value due to scarcity. The second risk is that a small number of investors are holding a big portion of the circulating DOGE.
According to data from IntoTheBlock, nine wallets own about 40% of DOGE. The risk is that the whales can easily manipulate the price of the meme token or dump them – causing the value to drop drastically. Dogecoin is also inactive in developments and network updates because it relies on volunteer developers. The cryptocurrency reported no major upgrade in the whole of 2020.
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- dogecoin-doge-in-5-years: Unsplash