Will 2023 be the year that Dogecoin reaches $1?
Here’s what that would look like. If you buy $700 of Dogecoin today, you’d be sitting on over $10,000 by the time the Dogecoin price hits $1.
There’s just one problem.
The closest Dogecoin got to a $1 price is $0.74 – close, but it was only there for an hour, and solely down to the fact that Elon Musk appeared on Saturday Night Live. The week after, the Dogecoin price collapsed to $0.2.
With no promise of a Twitter integration in sight, Dogecoin could continue falling below the current price of $0.067.
In fact, a majority 71% of industry experts surveyed by Finder.com urged investors to sell their Dogecoin right now. Here are three reasons why you shouldn’t buy Dogecoin in 2023, and why crypto experts suggest you diversify your portfolio into up-and-coming cryptos like EverGrow instead.
Let’s get to it.
Reason #1 – Dogecoin is hype & speculation
Dogecoin is the crypto with the second-largest following on Reddit after Bitcoin.
More than 4 million wallets hold Dogecoin.
But here’s the catch: Dogecoin has no use cases. Every single Dogecoin price pump since 2021 can be linked to either Tweets from Elon Musk, or news about Elon Musk. Thousands of people bought Dogecoin in late October as Musk took over Twitter – but he’s never actually promised any Dogecoin integration on the social media platform.
With Binance a major investor in the Twitter takeover, there’s more chance that a blockchain network and payments provider like Binance gets the prize.
So there’s every chance the Twitter hype will fade, and Dogecoin collapses in price.
If the latter is the case, then your Dogecoin investment has no clear signals it’s going anywhere. Dogecoin is already -91% down in price from the all-time high. That would turn $1,000 into $90.
IntoTheBlock data suggests over 2 million Dogecoin holders are making a loss right now.
Furthermore, consider this: crypto experts predict we’ll be in a bear market until 2024-2025. Dogecoin needs a market cap of $132 billion for 1 DOGE to be worth $1 in price. The current market cap is $9 billion – so a $1 Dogecoin in 2023 is unlikely.
#2 – Dogecoin is inflationary
Yup. A total of 5 billion DOGE is added to supply each year.
And you wanted to buy Dogecoin to beat inflation?
In the next 12 months, the DOGE price will fall over 3% if the market cap remains the same. Long-term the effect of inflation will keep Dogecoin price stable at best – and, in fact, this is why billionaires like Elon Musk and Mark Cuban rave about Dogecoin. A crypto with a stable price means more people would be willing to buy and sell it, rather than hold it.
Dogecoin inflation is the key to mass adoption of DOGE.
It’s the opposite of the current leading hyper-deflationary token in crypto: EverGrow.
EverGrow is on track to burn 10-20% of its supply in the next 12 months. This would make prices rise 21% even if the market cap remains the same – and even if we stay in a bear market.
Add to that the first NFT marketplace in crypto to send 100% of its revenue towards burning tokens (EverGrow tokens), a crypto content subscription app, and a play-to-earn gaming metaverse experience – EverGrow has both real-world cases and a deflationary nature. Once the price breakout starts happening, there’s a likelihood thousands more will pile into EverGrow.
This is another bullish incentive for an EverGrow breakout even in a bear market.
While Dogecoin has popularity, its structural limitations (it was built in about three hours as a joke) may start to weigh on it in 2023.
#3 – Dogecoin isn’t compatible with smart contracts
Dogecoin faces other limitations besides inflation.
The Dogecoin blockchain can’t interact with smart contracts. Smart contracts are the building blocks of decentralised finance (DeFi) and NFT applications, and without them it’s hard to integrate Dogecoin payment systems and apps.
For example: an integration into Twitter would be tough.
You’ll never be able to have Dogecoin NFTs, or have other tokens use the Dogecoin blockchain. Twitter can’t use the Dogecoin blockchain for its own ends, like fighting bots as once suggested by Elon Musk. It’s just another reason why Binance would probably have its blockchain used instead.
Lack of use cases and limitations were the key reason why crypto experts on Finder.com were not backing Dogecoin in 2023.
