In this article, we are going to go over will Dogecoin reach $1 in 2022, the meme coin that was hyped up in 2018, and is backed by Tesla CEO Elon Musk.
Cryptocurrencies had a fantastic year in 2021, recording massive gains across the board that sent the sector’s cumulative value to over $2.9 trillion at its peak. But so far, 2022 has been the polar opposite: the figure has been reduced by more than half. This is partly due to the Terra stablecoin crash, which had many effects on the crypto market.
Dogecoin, a meme currency with a notorious history, was one of the greatest-performing cryptocurrency assets in 2018, gaining more than 15,500 percent from its 2021 opening price to its all-time high of $0.74. Dogecoin, unfortunately for investors who invested near the top, has shed 88% of its value and is trading at $0.056 as of writing according to CoinMarketCap.
The cryptocurrency Dogecoin had its start when CEO Elon Musk of electric automobile firm Tesla accepted it as payment for business goods. Now, he claims that his space exploration organization, SpaceX, will soon start taking the currency. So, what is preventing Dogecoin from reclaiming its all-time high or even reaching $1?
Will Dogecoin reach $1 in 2022?
Answering the question of will Dogecoin reach $1 in 2022 is not easy. Cryptocurrencies are becoming increasingly popular due to their decentralized and ungoverned nature, which has previously permitted owners to remain anonymous and, in certain circumstances, avoid tax obligations. But that could all change for U.S. citizens as soon as next year under a set of bills being considered by the government that would compel cryptocurrency brokers to disclose their customers’ trading activity to the IRS. Furthermore, as the Securities and Exchange Commission (SEC) attempts to categorize tokens as securities, cryptocurrency exchanges may be subjected to stringent new compliance standards.
The price of cryptocurrencies will almost certainly drop, putting off many retail investors and driving up the cost of trading them. Unfortunately, that’s bad news for tokens like Dogecoin that are more speculative than they are useful.
Why is Dogecoin dropping?
That raises another key question: adoption. Musk’s seal of approval and his enterprises’ endorsements are good; Dogecoin has maintained a tenfold increase since Tesla’s product launch. But just one transaction hasn’t been enough to halt the steep downturn since the hype wore off, exacerbated by the fact that only 2,058 merchants accept Dogecoin as payment worldwide. It should be noted, though, that one of those businesses is Gucci, a worldwide luxury fashion brand.
The bottom line is that if consumers are unable to spend Dogecoin on a daily basis on goods and services they enjoy, the currency will continue to be a barrier to the widespread adoption it needs in order for prices to rise significantly.
$1 is unlikely, but not impossible
There are now about 134 billion Dogecoin tokens in circulation. At the current price of $0.056 per token, their combined value is $7.5 billion. If the price rises to $1, the total value of all Dogecoin coins will be just $134 billion since there are currently 134 billion Dogecoin tokens in circulation. That’s a huge number, and the meme cryptocurrency would need to find some tremendous use for it to reach such heights, but compared to its Shiba Inu counterpart, it isn’t outside the realm of possibility.
There are 589 trillion Shiba Inu tokens in existence, therefore if that cryptocurrency reaches $1, it would have a market value of over $589 trillion. That’s more than the current world wealth. Suddenly, $134 billion doesn’t appear to be such a big number.
How could Dogecoin get there?
It’s apparent that Tesla’s acceptance of Dogecoin for small items hasn’t given the token the long-term boost many investors hoped for. As a result, adding Elon Musk’s company to the mix isn’t likely to make much of a difference. In fact, without widespread usage, Dogecoin will struggle to retain any growth it achieves.
Shiba Inu is attempting to increase its value by burning coins in order to remove them from circulation permanently, decreasing the overall supply and raising the price per token organically. Unfortunately for owners, a rise in the price of each token will be offset by the loss incurred when their own coins are destroyed in proportion, assuming that the plan works as intended in theory.
The metaverse is one of several methods that Shiba Inu developers are using to help the burn. The metaverse will be known as SHIB: The Metaverse and will serve as a meeting place for the Shiba Inu community, with over 100,000 virtual plots of land available for purchase utilizing the Ethereum cryptocurrency. Owners of those plots will be able to name them with their Shiba Inu tokens, and these tokens will be permanently erased from circulation. It’s doubtful this will have a significant impact on the price, but it does offer extra value for token holders by giving them more functionality.
Will Dogecoin survive?
Dogecoin isn’t planning anything like this right now, but if it were, the effect would be superficial and it wouldn’t increase real value. Instead, Dogecoin is floundering in a no-man’s land between speculative efforts to boost its price and novelty initiatives by enthusiasts like Musk, with his suggestion to accept Dogecoin for Twitter Blue subscription, who is attempting to lend legitimacy to the meme token. Unfortunately, those two things are not likely to send Dogecoin to $1. So with the current situation, the answer to the question of will Dogecoin reach $1 in 2022 seems like a simple no.
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