Does Dogecoin Have The Potential To Hit $10 In 2022?

Crypto currencies are getting popular with Bitcoins ushering in a new age of currencies. Although it is only the name of Bitcoins that we hear from most of the people who are acquainted with the world of digital currencies, there are other cryptos like Ethereum, Litecoin, Plkadot, Dogecoin. In this article, you will get to know does Dogecoin has the potential to hit $10 in 2022.

The meme cryptocurrency gained popularity overnight after its release in 2013. This digital currency has a great fan base because of the hilarious Dog image as its symbol.

The currency gained immense popularity within one month. Over one million visitors came to the official website and the price of the coin has made above 5000% in 2021 which started at $0.006.

What Is Dogecoin?

IBM software engineer Billy Markus and Adobe software engineer Jackson Markus formed the dogecoins in a form of joke currency. But that joke has reached an insane level of popularity and value. Retailers around the world like to receive payments through Dogecoins.

Dogecoin is user-friendly; it has its own blockchain, in addition, many wallets and exchanges support Dogecoins. Dogecoins are mainly used to make payments. The meme crypto currency is said to have a higher inflation rate. 

Compared to Bitcoins, Dogecoins are inflationary while the Dogecoins are deflationary. The reason behind this is the limited rate of Bitcoin production. On the other hand, the Dogecopions have an extensive rate of production, hence it is inflationary.

The technology Behind Dogecoin

Like all the other cryptocurrencies Dogecoins are also based on blockchain technology. Blockchains, also called ledgers, are massive digital databases that store transaction information. For example, the dogecoin blockchain keeps the transaction information when a transaction is made using Dogecoin.

Thousands of computers, called nodes, store blockchain information. Blockchains are called decentralized networks. Dogecoins, like other cryptocurrencies, work as a way of payment that does not require any physical money or approval from any bank or government.

How To Exchange Dogecoins?

There are many cryptocurrency exchange websites where you can buy and sell your cryptos. Bit-Z and Bittrex are the exchanges with the highest 24-hour trading volume. However, Binance is still the best place for purchasing Dogecoins. Many crypto users often call Binance the best crypto exchange platform. 

Reason For The Hike Of Dogecoins

Dogecoin value is  hiking because of the community it has grown. In the world of cryptocurrencies Dogecoins have managed to create a devoted community that keeps the hype continuous. Moreover, dogecoins also succeeded in attaining the support of celebrities like Elon Musk, and Snoop Dog.

Dogecoins are spreading awareness about the value and importance of blockchain technology and making  crypto currency famous among the mainstream audience with its lightheartedness. 

2021 Dogecoin Price Prediction

The trading of Dogecoin continued at $0.007 at the beginning of 2021. In May, the altcoin traded at $0.34. But Elon Musk’s arrival at the scene with his appearance on the SNL show and his tweet with the tagline Dogefather hiked the price by 15000%. Consequently, Dogecoin reached its highest price $0.74 on May 8.

The value of this meme inspired crypto currency fluctuates frequently in 2021. Because of the market crash it plunged to $0.22 on May 19. On 23rd Nay it was at $0.25. The trading was upto $0.44 on 2nd June; but that did not last very long, it dropped back again to $0.16 on 22nd June. Dogecoin was consolidating within 0.2 during the third quarter of  2021.

The dogecoins price spiked in August. It increased consecutively, $0.19, $0.21 and ultimately $0.25 on 7tth August.. The Price reached $0.3207  on 16th August but failed to retain it and lowered to  $0.2952. 

The dogecoins have potential because of its strong community and growing mainstream popularity. The Dogecoins may reach the price of $0.974 by the end of 2021.

2022 Dogecoin Price Prediction

Dogecoins may start at aggressive $0.99 if the altcoins closes this year.If it gets engulfed by a bearish trap then the similar price of 2021 may be followed by 2022 at $0.21. Altcoin has the upper hand because of the high rate of Dogecoin production. 

eToro and Gemini, most used crypto exchanges, have listed Doge as the most popular crypto this year, which made its price to hike. If other currency exchanges list Dogecoins in the following years, it has the potential to at $2.382 by the end of 2022. Otherwise the price may consolidate at $1.639.

Buut, if the general consensus does not approve of crypto currency, if the idea about digital currencies remains vague for the majority of people, then it may have a negative impact on Dogecoin,making it stay at $0.474.

Will Dogecoins Reach $10? 

A theoretical approach to this question supports the idea of dogecoins reaching the value of $10. The hype around Dogecoins and the network effect are working as a tremendous force behind the rapid growth of Dogecoins. Unlike bitcoin mining, dogecoins have a large and growing number of yearly production.

With the current supply that Dogecoins have The market cap of dogecoins will be $1.3 trillion if it reaches $10 value. The current value of dogecoins( at the time of writing this article) is $0.2. The value has been consolidating from the last few months. For the price of Dogecoins to reach a $10 value, it has to cross the value of $1 per coin. 

The most foreseeable value of dogecoins suggest that the coin has the potential to reach the price point of $1 by the end of December 2022. But, reaching the price point of $10 iby 2022 is nearly impossible. It may take around 5 to 10 years for dogecoins to reach the value of $10.

Is Dogecoin Worth Investing On?

The volatile nature of cryptocurrencies makes lots of people interested in investing in it. However there is no confirmation as to when or how much profit you will gain from investing in it. Dogecoins rose as a funny and user friendly digital currency but it is still not secure enough for a long time investment.

But dogecoins are not potentially the best when it comes to a long term investment. If you have surplus money and you are planning to make an investment in a funny way then it is good to invest in dogecoins. The experts suggest only a 3% or 10% of your cryptocurrency portfolio.

Conclusion

Dogecoins have massive followers on Reddit. Apart from the funny side, Dogecoin has helped with many humanitarian causes like raising funds for building a clean water well in Kenya; or supporting the Jamaican Bobsled team in the Sochi Winter Olympics.

Unlike the other cryptos that were created with a serious intention, Doges were created as a joke. So if you are planning on a serious investment then it is definitely a risky move to invest on Doge. For more serious investments Bitcoins or Etherium are great, you can use moon bitcoin cash to earn bitcoins.