Dogecoin price prediction: Will the ‘joke’ crypto wow in 2020?
Perhaps you wouldn't be barking mad to invest in Dogecoin. Here we take a look at where the price might go in 2020 – and reflect on the currency’s history.
Read our new forecast for 2021 Dogecoin price prediction: beware of the DOGE?
Dogecoin started life as a joke cryptocurrency six years ago, but following sudden rises in value over recent months, some analysts are beginning to take it seriously. Here, we’ll offer a Dogecoin price prediction for 2020, and take a look at the coin’s historical performance and major milestones.
What is Dogecoin?
The internet is full of weird and wonderful in-jokes (often referred to as memes), and one of them relates to a photograph of a Shiba Inu dog surrounded by sentences written in broken English and in the Comic Sans font. “Doge” became a sensation in 2013 on sites such as Reddit and Tumblr – and this inspired an American programmer called Billy Markus to create a fun alternative to Bitcoin that didn’t take itself too seriously.
Dogecoin price history
Dogecoin price history has been turbulent to say the least. In December 2013 the price of a single DOGE leapt from $0.00026 to $0.00095 in the space of just 24 hours. This may seem unremarkable given how we’re talking about fractions of a cent, but it is worth bearing in mind that this is an increase of more than 265 per cent. (Alas, it wasn’t to last, and prices plummeted the following day.)
A look at Dogecoin price analysis shows that its value then stayed broadly flat until the middle of 2017, when the whole industry was sucked into an unprecedented boom. Over the course of a single week in May, DOGE rose from $0.001066 to $0.003747 – another huge increase. (To put this into context, those who had held on to their coins since December 2013 would have realised a gain of 1,340 per cent.)
Although prices began to cool once more, they would come back for a grand finale, reaching all-time highs of $0.0175 in the first week of January 2018. That’s an increase of a whopping 6,600 per cent on where they were in December 2013. Sure, it’s a level of growth that would get many tails wagging in the crypto community – but given how Dogecoin was sold as a joke, it’s unlikely that many (if any) shrewd traders spotted an investment opportunity and managed to cash in.
Where was Dogecoin in 2019?
Even though most jokes and parodies tend to fade away after a few months – usually because they’ve lost their novelty – Dogecoin has bucked the trend. There are more than 5,000 cryptocurrencies in circulation these days, many of them with lofty objectives, but according to CoinMarketCap, DOGE is still the 32nd biggest with a market capitalisation of $280m at the time of writing.
Overall, 2019 was a good year for Dogecoin fans. The internet meme it was inspired by has enjoyed something of a revival, and this could have caused renewed interest in the cryptocurrency.
Several other milestones also contributed to an uptick in price – and some of them were just pure luck. In April, Dogecoin ran a prank poll on its official Twitter page that asked followers who should become its next CEO. Tesla’s colourful CEO Elon Musk won, prompting him to tweet: “Dogecoin might be my fav cryptocurrency. It’s pretty cool.” The publicity saw DOGE’s value soar by 35 per cent in a single day to $0.0033, its highest point in six months.
DOGE was also listed on a couple of high-profile crypto exchanges over the course of last year, including Huobi and Binance. This is always good news for a digital currency: it unlocks new trading pairs for existing owners and exposes the coin to new people. When Binance’s plans to list DOGE were confirmed in July, prices jumped by more than a third to reach $0.0043, with the exchange’s CEO Changpeng Zhao tweeting:
What is your sentiment on DOGE/USD?
This one is an exception, as there isn’t much new tech development (I guess it was never about the tech for this one). The users/community is large, and a famous 'ex-CEO' (cough @elonmusk) helps!
Dogecoin price prediction for 2020
So… what lies ahead for DOGE as we begin a new decade? Well, as we’ve seen based on the cryptocurrency’s performance in 2019, significant positive gains could likely depend on one-off events such as a celebrity endorsement. A high-profile listing on an exchange could help too, but it’s arguable that Dogecoin has exhausted this option now Binance and Huobi are fully on board.
It’s also worth bearing in mind that previous predictions on where Dogecoin would end 2019 haven’t proven accurate, either. Some analysts expressed hope that the cryptocurrency would have ended the year at $0.007, while others firmly believed that $1 was possible because of how DOGE has gained traction as a cheaper and faster method for crypto transfers than the likes of Bitcoin and Ethereum. The reality was far different – and in fact, DOGE actually started 2020 at just $0.002.
According to Wallet Investor, DOGE could hit $0.00368 by the end of 2020, while Crypto Ground is forecasting an increase to $0.0033. Other analytical websites, such as DigitalCoinPrice, are even more optimistic, and believe $0.00552 is achievable this year.
Unfortunately, it’s very difficult to know whether any of these predictions will hold water. Although DOGE has a dedicated and friendly community – and in some circles has become the go-to cryptocurrency for tipping people on social networks – it has a limited use case and no roadmap for future development.
When it comes to whether Dogecoin will be "so invest, much profit, very crypto and wow" in 2020, it’s fair to say that your guess is as good as ours. But, given its impressive levels of resilience, there might still be life in the old DOGE yet.
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