The price of the meme-based cryptocurrency Dogecoin (DOGE), which entered the top ten among cryptocurrencies this year, rose 25% this week. Dogecoin price surged above 70 cents in an Elon Musk-induced rally in May. Significantly increased compared to the same period of the previous year. However, it declined in the following months. Dogecoin price found a bottom around 20 cents before it started climbing this week.
Ahead of Dogecoin’s recent rise, a panel of cryptocurrency experts predicted that the Dogecoin could be worth 42 cents by the end of 2021, thanks to the “Pump and Dump” cycle. This corresponds to a 60% increase from its current level. Senior cryptocurrency researcher Forrest Przybysz said:
“I would expect Doge to grow with the rest of the rapidly growing crypto market. But there will likely be long-term fixed-price movements followed by fierce speculative spikes as we have seen in the past.”
What do the polls say?
A website polled 42 crypto experts, 80% of whom describe DOGE as a bubble. They surveyed what they expect the price of Dogecoin to be in the coming years. Most of those who say Dogecoin is a bubble (55%) think its price will collapse this year, while 42% think the Dogecoin bubble will burst in 2022 and 3% in 2023.
According to the news in Forbes, the survey average, which predicts the price of Dogecoin as 42 cents at the end of 2021, says that Dogecoin will reach $ 1.21 by 2025 and $ 3.60 by 2030. However, some experts are confident that some meme-based cryptocurrencies will drop to zero soon, while others are talking about $10 per token.
John Hawkins, senior lecturer at the University of Canberra, predicted that Dogecoin would be worth 15 cents by the end of 2021 and be completely worthless by 2030:
“Dogecoin seems heavily dependent on Elon Musk’s erratic tweets. Dogecoin is rarely used as a means of payment and has proven to be a very poor store of value.”
Tesla TSLA -2.2% billionaire Elon Musk has embraced Dogecoin as a pet project this year. He has repeatedly shared Dogecoin memes on social media, calling out to developers for upgrade ideas and improvements. Musk drew backlash from most of the Bitcoin community. He was the leader that Dogecoin could “beat Bitcoin” if it lowered its transaction fees and increased the speed of its network.
Despite Musk’s attempts to validate Dogecoin, many are unsure if it will compete with Bitcoin, Ethereum, and other cryptocurrencies.
“Scammers will keep pumping this scam until it becomes illegal,” said Ryan Gorman, co-founder of market data website Trade The Chain.