Can Dogecoin Hit the $1 Milestone? What Needs to Change for a Big Breakthrough

Dogecoin, one of the earliest and most unpredictable cryptocurrencies, continues to grab attention due to its wild price swings. Despite its ups and downs in 2024, this meme-based digital currency is still far from reaching the $1 milestone that many investors hope for. Currently trading around $0.10, Dogecoin is about 86% lower than its all-time high of $0.74, set back in May 2021. So, what would need to happen for Dogecoin to reach $1? It might be possible, but only with some big changes.

Making Dogecoin More Useful

One of the biggest things that could push Dogecoin’s price up is making it more useful in everyday life. Right now, Dogecoin doesn’t have many practical uses. It’s mostly known as a way to tip people on Reddit. Some fans are hoping it could be used on the social media platform X (formerly known as Twitter), especially since its owner, Elon Musk, has often spoken positively about Dogecoin. As of now, about 2,594 merchants accept Dogecoin as payment, which isn’t a lot compared to other cryptocurrencies.

Dogecoin also has some technical limitations. Unlike Shiba Inu, which runs on the Ethereum network and can interact with many other applications, Dogecoin has its own blockchain that isn’t widely compatible with other platforms. Additionally, there are only 21 full-time developers working on Dogecoin, compared to nearly 2,800 developers on Ethereum. If Dogecoin could become more useful and integrated with more platforms, it could attract more users and investors, potentially boosting its price.

Managing the Growing Supply

Another challenge for Dogecoin is its ever-growing supply of coins. Unlike Bitcoin, which has a maximum limit of 21 million coins, Dogecoin doesn’t have a cap. Right now, there are about 146 billion Dogecoins in circulation, and 10,000 new coins are added every minute. This means over 5 billion new Dogecoins are created each year.

With so many coins constantly being added, it’s harder for the price to go up. To increase in value, Dogecoin would need demand (people buying and using it) to outpace the growing supply, which is a tough ask with its limited uses. A potential solution would be to "burn" some of the coins, reducing the total supply. However, there are currently no plans for such a change.

How Has Dogecoin Been Performing?

Since the beginning of 2023, the overall cryptocurrency market has grown by about 170%. However, Dogecoin has only increased by around 50% during the same period. This underperformance suggests that Dogecoin isn’t benefiting as much as other cryptocurrencies from the market's growth, even when conditions are favorable. This raises questions about whether Dogecoin can reach $1 without significant changes.

What Should Investors Think About?

While it is possible for Dogecoin to reach $1, it would require major improvements in how it is used and a reduction in the number of coins available. Without these changes, Dogecoin remains a risky investment driven mainly by hype and speculation. Investors might find better opportunities with other cryptocurrencies that have more uses and stronger growth potential.

The Future of Dogecoin

For Dogecoin to reach the $1 mark, it would need to become more useful in real-world situations and manage its growing supply more effectively. Until then, its price may continue to be influenced more by market trends and investor sentiment than by actual utility. Potential investors should carefully consider these factors before investing in Dogecoin.

Also Read: Elon Musk Wins Legal Battle Over Dogecoin ‘Pyramid Scheme’ Allegations