We’ve witnessed a multitude of unexpected events over the past year-and-a-half, from the pandemic sweeping across the world to the rapid recovery in stocks soon after. Then assets like Bitcoin and other cryptocurrencies saw a significant rally. One of the biggest surprises, though, had to be the incredible rally we saw with Dogecoin.
There were plenty of massive rallies in cryptocurrencies, but most of those had fundamental reasons behind the gains.
It was much more surprising to see a cryptocurrency initially created as a joke gaining so much popularity. After an exciting few months full of speculation, though, Dogecoin hit its high and since has fallen by over 70%.
So you may be wondering, with the coin now trading so cheap, if it’s worth a buy at this significant discount.
Can Dogecoin recover?
The question of whether Dogecoin’s price can bounce back is a difficult one to answer. It’s almost impossible for anyone to predict the short-term movement of any asset, especially a cryptocurrency.
So there will likely be lots of opportunities for Dogecoin to see some bounce-back rallies. Whether it can surpass its all-time high, though, is another question.
It would need to take some major catalysts and a tonne of speculation by the market for that to happen again, which is why Dogecoin is likely not the best crypto to buy today.
Because it has few use cases and other cryptocurrencies offer far more potential, there aren’t really any fundamental reasons to invest in Dogecoin. So any investment would be price speculation only, which is considered risky.
Not to mention, it’s in a long-term downtrend, and the momentum is working against investors hoping for a rally.
Just because Dogecoin may not have potential, though, doesn’t mean other cryptocurrencies, and the industry as a whole doesn’t. So if you’re bullish on crypto, here’s a top Canadian growth stock to consider instead.
A top Canadian crypto stock to buy today
Rather than Dogecoin, a much better investment to consider would be a cryptocurrency mining stock like HIVE Blockchain Technologies (TSXV:HIVE). The even company holds a lot of the currencies it mines, offering investors exposure to the coins themselves in addition to its high-potential mining operations.
It was the first blockchain infrastructure stock to trade publicly in Canada and continues to be a pioneer and one of the best companies you can invest in if you’re bullish on crypto.
In addition to being one of the top crypto stocks, it’s also a much better investment than Dogecoin. Because you are buying a mining business, the company has the potential to earn money even if crypto prices are flat. Plus, the exposure you get is to the highest potential cryptocurrencies there are.
So it’s a business that you can commit to long-term rather than Dogecoin, which could very likely just continue to decline and continue to lose you money.
In addition to having some of the best and most diversified operations of any crypto mining stock, the company also continues to make significant progress in expanding its operations.
In just the last two months, HIVE has been sourcing more renewable energy to help power its mining production. It also just bought over 3,000 high-performance Bitcoin miners, which will grow its production by nearly 50%. And it started trading on the NASDAQ on July 1, which will help the company, currently worth just $1 billion, to get a lot more exposure.
So even if the crypto industry has been trending sideways the last few months, the company continues to take additional steps to position itself for further growth in the industry.
That’s why if you’re thinking of buying Dogecoin, I’d strongly recommend HIVE Blockchain Technologies. It’s not only a safer investment, but at the current prices today, it also offers much more growth potential.
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Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.