Most members of an expert panel on cryptocurrencies think Dogecoin is in a bubble, although they also predict that the coin will finish the year up from its current value of US20c.
Thirty-two of 40 members, or 80 per cent, of Finder’s expert panel on crypto see Dogecoin is in a bubble, while 10 per cent said it wasn’t.
But they still gave an average end-of-year price of 42c, with three of the 20 panellists who made price predictions expected it would peak over US$1.
Cake DeFi CEO Julian Hosp was one of them, but said “it will be a pump and dump”.
University of Canberra senior lecturer John Hawkins gave one of the lowest predicted values for the end of the year – just US15c.
“Dogecoin seems largely dependent on Elon Musk’s erratic tweets,” he told Finder.
“It is barely used as a payment instrument and has proved a very poor store of value.”
“Dogecoin will eventually go to $0,” Thomson Reuters futurist Joseph Raczynski said.
“There are at least 100 to 200 other crypto projects that should be worth more than Doge. It’s amazing to witness what [one] celebrity can do…”
Does the Doge make a joke out of crypto?
As Stockhead has relentlessly chronicled, Dogecoin was one of the best-performing coins of the first half, rising 5,040 per cent. On Monday Doge was trading at US20.55c as the No. 8 crypto, up from US0.5c at the start of the year.
Forty-six per cent of the panel thought that the success of Dogecoin and other memecoins have undercut the legitimacy of the crypto market, while 38 per cent said they have no impact.
Martin Gaspar, a research analyst of CrossTower, was in the former camp.
“It demonstrates that coins with little use case and development can attain valuations greater than that of legitimate cryptocurrencies,” he said.
Raczynski agreed, saying that “Doge is a joke. It wasn’t meant to be taken seriously from the onset, and the raising of its profile does the industry a disservice.
“While it raises the awareness of cryptocurrency, the fact that it has little underlining direction ― no fixed token rate, no governance plans until recently ― and its pump by a few is unfortunate. This doesn’t mean the value won’t increase because of market forces”.
CoinFlip’s founder and chief advisor Daniel Polotsky said that the Doge phenomenon is nothing new.
“Seemingly irrational human behaviour has been around for centuries,” he said. “General sentiment has always been a powerful factor in determining investment prices.”