Market Overview
Digital asset markets experienced a rally last year, driven by the approval of Bitcoin ETFs and the election victory of U.S. President Donald Trump. In this period, the top 10 largest cryptocurrencies (excluding stablecoins) by market capitalization reached new heights within the last 12 months.
Dogecoin’s Unique Position
However, Dogecoin has been an outlier in this trend.
While major cryptocurrencies like Bitcoin, Solana, BNB, and XRP have all achieved new records, DOGE, the favorite meme coin of Elon Musk, remains priced over 70% lower than its all-time high of $0.73 in 2021.
According to CoinGecko data, DOGE is currently valued at just above $0.21. The coin rebounded last fall when Musk campaigned alongside President Trump, and it continued to rise after Trump’s election victory. Nonetheless, it peaked around $0.48 in December and has not surpassed the $0.40 threshold since January.
The Current Situation
What could be the issue? If meme coins thrive on vibes and goodwill, particularly with the crypto sector flooded with positive news lately, why isn’t DOGE soaring once more?
More Read
“Dogecoin runs on vibes, and the vibes haven’t reached 2021 mania levels yet,” remarked Douglas Colkitt, founder of Ambient Finance and a founding contributor of Fogo, in an interview. “Unlike Bitcoin or ETH, there’s no structural demand driver. It lacks staking yields and doesn’t anchor DeFi collateral… it’s essentially just a meme supported by a passionate community.”
Investor Sentiment
Zach Pandl, Grayscale’s Head of Research, further explains that investors are currently more drawn to digital assets that provide tangible utility. Meme coins notoriously lack this element.
“There is nothing wrong with meme coins and other digital collectibles, and they will always be part of the crypto markets,” Pandl Said. “However, institutional investors entering the crypto sphere are seeking real-world use cases and are focusing on revenue-generating projects.”
More Read
Perception of Bitcoin and Ethereum
Bitcoin is primarily marketed as a long-term store of value, while Ethereum’s network is perceived to facilitate applications like stablecoins—digital tokens tied to the dollar that entities from JP Morgan to Meta express interest in issuing.
Future of Dogecoin
Despite a hint of demand for the coin—analysts have Said that ETFs providing exposure to DOGE might soon be approved—it originated as a joke to lampoon the crypto market. Dogecoin gained a significant following when Tesla’s Elon Musk began sharing memes about it.
The world’s richest individual and SpaceX leader has previously expressed his fondness for DOGE, stating that he appreciates the asset because it is “for the people,” unlike Bitcoin. He has also commented on its “best sense of humor” and his affinity for dogs and memes.
Transaction Viability
In the past, DOGE has been promoted as being suitable for payments; billionaires like Shark Tank’s Mark Cuban, along with Musk, have touted the coin’s tokenomics as advantageous for transactions. Cuban mentioned that the low price per coin makes it a viable asset for spending, unlike Bitcoin.
However, Dogecoin has not gained traction for transactions and is generally viewed as a speculative—and entertaining—asset. It hasn’t provided traders with the same returns as Bitcoin or Ethereum over the last few years.
“Meme coins can foster a sense of community among online users, but this doesn’t necessarily mean they will be wise long-term investments,” Pandl noted.
General Market Trends
Taking a broader look, many cryptocurrencies have not yielded substantial returns this year, as indicated by data from digital asset management firm Arca, which reveals that 75% of the tokens they track are reporting negative returns year-to-date.
“The only exceptions are tokens associated with equity participation, such as Bitcoin, Ethereum, and Solana, or those linked to legitimate business models,” said Arca CIO Jeff Dorman, highlighting price increases in assets like decentralized derivatives platform Hyperliquid’s HYPE and CRO associated with crypto exchange Crypto.com.
“Conversely, DOGE lacks a functional purpose, which accounts for its lack of significant price growth,” he further explained.
Potential Developments
Future changes could occur with initiatives like DogeOS, which aims to introduce apps and games to the network, and the anticipated Dogecoin ETFs that issuers such as Grayscale and Bitwise hope to launch, pending SEC approval. However, even approval from Wall Street might not provide DOGE with a sustainable boost.
“Certainly, an ETF would generate headlines and might attract some new inflows. But let’s be honest: a DOGE ETF would symbolize that financial markets have completely embraced the absurd,” added Colkitt. “Will it pump? Probably. Will it generate lasting value? Unlikely.”
“There’s always an appetite for DOGE because people enjoy the joke. That’s the product: the meme,” he elaborated. “However, demand isn’t synonymous with utility. As long as investors are willing to speculate based on nostalgia and internet culture, there will be interest in DOGE. Just don’t mistaken it for fundamental adoption.”
