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If you own Elon Musk’s favorite crypto, Dogecoin, what will it be worth in 5 years?
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Elon Musk was professing his love for Dogecoin for a few years now – his first article on it was in 2019, when he called it his “favorite cryptocurrency” – and he has since been send crypto on a roller coaster following each of his multiple posts on this subject. And earlier this month, in a significant move and a new seal of approval for crypto, Tesla updated its payment methods to accept DOGE, according to its website.
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This caused the price of DOGE to skyrocket, according to CoinGecko. And as of May 10, the price had increased 3.5% over the past week and 94.1% over the past year, according to CoinGecko data.
Still, DOGE’s trajectory is tricky, with many alternative cryptocurrencies and memecoins inherently extremely volatile. And while Musk continues to have a significant impact on DOGE’s popularity and price, it remains to be seen whether his path is linked to him.
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Difficult to predict what DOGE will be worth in five years
Patrick Gruhn – lawyer, entrepreneur, CEO of PMX Technologies and former (now defunct) FTX executive – argued that there is no way to truly predict what DOGE will be worth years from now, especially with “the hype absolute media coverage around memecoins on Solana as well.”
However, Gruhn pointed out that there is a very interesting point regarding memecoins in general, as they are often seen as a form of protest.
“The argument goes: ‘If the government wants to inflate and tax my hard-earned money to pay off debts, enrich their friends, and buy political votes for re-election, then I’m just going to use a completely different monetary system than they cannot create. And it will be a dog on the face of the coin, because that’s what I think about what is currently represented by the faces currently on our physical coins,” he said.
“Since Elon is creating an entire ecosystem of software and hardware innovation, perhaps he could support this protest and allow the use of Dogecoin with his products/services, thereby ensuring its demand. Then, of course, the value in five years can be substantial,” he added.
Other experts weigh in
And although other experts agree with the hypothesis that it is difficult to predict the price of memecoins due to their volatility, one thing is certain.
“Memecoins are here to stay, at least for now,” said Jeff Owens, co-founder of Havre1.
Owens noted that despite the lack of underlying technology or tangible use cases, the memecoin frenzy over the past few months highlights that these assets have some value – value that depends primarily on market sentiment.
The story continues
Additionally, institutional adoption of memecoins and their entry into the broader financial landscape, such as Tesla’s move, will push the hype even further, he said.
However, he also pointed out that these early stages of adoption have not prevented the volatility of memecoins.
“By nature, it is a much more volatile investment than other top cryptocurrencies like Bitcoin or Ether,” he said. “So that’s something to keep in mind when investing in Dogecoin or any other meme-themed coin over the next five years.”
Tayler McCracken, editor-in-chief of Currency Officesaid DOGE also faces significant competition in the memecoin space, with tokens such as Pepe, Shiba Inu, Bonk and countless others taking market share.
Memecoin investors, he said, are quickly turning to the latest trends in search of the “next DOGE,” which could further dampen Dogecoin’s performance.
What about Musk’s continued impact on Doge? Is Doge’s trajectory linked to Musk?
Like Rebecca Liao, CEO of Saga, noted: “Attention is an incredible asset in the digital economy in which the world is increasingly evolving. »
“We are only in the early stages of this trend, and most memecoins, I must warn, will never be worth much in the long term,” she said. “But for connecting digital communities, memecoins have a lot of appeal and impact. The fact that many of them are so funny and silly adds to this appeal, as Elon Musk has clearly shown with his affinity for Dogecoin.
As for Musk’s continued impact on crypto, Coin Bureau’s McCracken deemed him “the elephant in the room.”
According to him, although many consider Elon to be Doge’s de facto spokesperson, there is a risk that he will grow bored of the room and move on.
“There is a significant ‘key risk’ when the price of a cryptocurrency is heavily influenced by the adoption and motivations of a single individual,” he said.
He noted that when Musk was asked why he loves DOGE so much, he pointed to the reasons for humor in the irony of the situation.
“Elon is in a unique position to integrate Doge into multiple facets of society as a payment method,” he added. “Depending on Elon’s actions and vision for things like sending Doge to the moon (literally) and accepting Doge for Tesla products – with Elon’s support, Dogecoin’s price is likely to remain relevant and successful in the crypto industry.”
McCracken added that even if Musk were removed from this situation, DOGE would likely remain relevant, albeit at a more moderate pace.
“It has become a truly premier bulwark for the memecoin community, and with Memecoins among the most successful projects of all time, even without Elon’s promotion, Dogecoin will likely continue its long-term potential,” a- he added.
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This article was originally published on GOBankingRates.com: If you own Elon Musk’s favorite crypto, Dogecoin, what will it be worth in 5 years?