By Jake Coleman
Despite the prevailing selling pressure affecting various assets in the cryptocurrency market, Dogecoin (DOGE) continues to endure. There is a glimmer of hope that this meme-inspired digital currency, adorned with a canine motif, may achieve the coveted milestone of $1 per unit.
Indeed, the digital asset DOGE has showcased its prowess for robust bullish surges, as exemplified by its notable ascent in May 2021, culminating in an unprecedented pinnacle of $0.68184. This remarkable feat is the closest approximation to the highly sought-after milestone of $1. In this particular instance, the asset above has experienced a noteworthy surge of 7,476% (and beyond) within a relatively brief timeframe (originating from approximately $0.009).
If Dogecoin were to reach the $1 mark, it would represent a significant jump of approximately 1,250% from its current value, which cannot be considered entirely implausible. With the above in mind, we analyzed the variables that may (or may not) push this digital asset to the above valuation, both on their own and in combination with other variables.
Elon Musk’s Unwavering Support in This Endeavor
A prominent figure in the tech industry, the CEO of Tesla, Elon Musk, has consistently exerted a significant impact on the valuation of Dogecoin. Musk has openly expressed his fondness for this digital asset alongside Bitcoin (BTC). Consequently, it is not unexpected that the price of DOGE frequently reacts to his public remarks and activities.
In a recent development, a particular digital asset, DOGE, experienced a notable surge in its price, exceeding 20%. This surge was reportedly triggered by rumors suggesting that an entity referred to as X might adopt DOGE as a form of payment. Suppose prominent figures like Musk and X persist in vocally endorsing Dogecoin. In that case, it may contribute to sustaining its value and potentially enhance the likelihood of the meme-based cryptocurrency achieving a price of $1.
Increased Attention Shown by Many Institutions
Heightened intrigue surrounding investment in Dogecoin, emanating from notable financial entities and other relevant institutions, possesses the potential to fortify its standing. Such a development effectively communicates to the market that this digital asset holds genuine promise as an investment avenue, thereby stimulating heightened demand and a consequent escalation in the value of DOGE.
Undoubtedly, the involvement of institutional investors has played a significant part in the surge of DOGE’s value at the beginning of 2021. Furthermore, Musk has unveiled an extensive 22-year blueprint to revolutionize X into the most esteemed financial establishment globally. His endorsement of the meme asset has further intensified the conjecture surrounding the potential integration of DOGE.
The Advancement of Technology
Suppose the Dogecoin development team makes notable advancements in enhancing the ecosystem’s security and scalability. In that case, the asset may garner increased appeal among investors and users, exerting upward pressure on its price.
In March, the developers announced an upgrade to the DOGE blockchain ecosystem. More recently, in late June, an anonymous Dogecoin developer known as Bluezr hinted at continuous efforts toward a Dogecoin Core upgrade. A GitHub repository was shared, which documented ongoing contributions, reviews, and feedback for Dogecoin Core 1.14.7.
Regulatory Climate That Is to One’s Advantage
Amid notable resistance towards crypto from specific governmental and regulatory entities in the United States, the backing of regulators and governments would hold significant importance for the entire sector. This support would facilitate the acceptance of DOGE as a viable payment option for businesses.
In decentralized finance, the potential realization of this phenomenon is already unfolding within various nations commonly recognized as ‘crypto havens.’ The advent of such a development has the potential to amplify the existing demand within the crypto ecosystem significantly.
Adoption and Application on a Widespread Scale
With the recent surge in new holders, Dogecoin has demonstrated its potential for widespread adoption. Despite facing tough competition from other meme cryptocurrencies, the increased purchasing and usage of Dogecoin could positively impact its price.
One factor that could contribute to the increased adoption of DOGE is the acceptance of this cryptocurrency by various businesses. An example of this occurred in March 2022, when AMC Entertainment (NYSE: AMC), an American movie theater chain, incorporated Dogecoin, Shiba Inu (SHIB), and other cryptocurrencies as payment alternatives through its mobile application.
