Is Dogecoin a Good Investment in 2024?

Gianluca Lombardi, 5 min read
Last Updated: 5 January, 2024

is dogecoin a good investment

Dogecoin is a popular cryptocurrency that was created in 2013 as a joke but has since gained a lot of attention and value. Many people are wondering if Dogecoin is a good investment in 2024 and beyond. Here is an in-depth look at the pros and cons of investing in Dogecoin.

What is Dogecoin?

Dogecoin (DOGE) is a decentralized, peer-to-peer digital currency similar to Bitcoin. It is based on the popular “Doge” internet meme of a Shiba Inu dog.

Dogecoin was created in 2013 by software engineers Billy Markus and Jackson Palmer. Their goal was to create a fun, lighthearted cryptocurrency that would have broader appeal than Bitcoin.

Unlike Bitcoin, there is no cap to the supply of Dogecoin. New Dogecoin are created through a mining process at a steady rate of 10,000 DOGE per block. This makes Dogecoin an inflationary currency.

Dogecoin runs on its own blockchain and uses a proof-of-work consensus algorithm. Transactions are relatively fast and the fees are very low compared to other major cryptocurrencies.

Dogecoin Price History and Market Performance

Dogecoin saw relatively low prices and trading volumes in its early years. In 2017, the price briefly rose during the crypto boom and reached an all-time high of $0.017.

The price remained fairly stagnant over the next few years until 2021. That year saw a meteoric rise in the price of DOGE driven by attention from influencers like Elon Musk and the GameStop short squeeze event.

The 2021 crypto bull run pushed Dogecoin’s price up over 10,000% to an all-time high of $0.73 in May 2021. This gave Dogecoin a total market capitalization of over $90 billion at the time.

However, the price fell back down to the $0.10-$0.30 range for most of 2021 and 2022 as the crypto market cooled off. Here is a table of Dogecoin’s price history:

Date Price
December 2013 $0.00023
December 2017 $0.00170
December 2020 $0.00400
January 2021 $0.00200
May 2021 $0.57000
December 2022 $0.07500

As of January 2024, the price of Dogecoin is around $0.08.

The Pros of Buying Dogecoin

There are some potential benefits to consider when deciding if Dogecoin is a good investment in 2024:

  • Growing adoption – More companies and services are starting to accept DOGE for payment. The Dallas Mavericks NBA team accepts Dogecoin for tickets and merchandise. Dogecoin adoption is growing especially after Elon Musk acquired Twitter.
  • Large online community – Dogecoin has an enthusiastic community with many supporters on Reddit, Twitter and other social platforms. This grassroots promotion helps drive awareness.
  • Elon Musk support – High profile business leaders like Elon Musk have expressed support for Dogecoin on social media. Musk could integrate DOGE with Twitter or Tesla.
  • Inflationary supply – Having a unlimited supply means the risk of deflation is lower than a capped supply cryptocurrency. More DOGE can be mined to meet demand.
  • Fast and cheap transactions – Sending DOGE transactions is fast with negligible fees. This makes it useful for micropayments, tipping, and merchant payments.
  • Significant gains potential – If hype cycles return, DOGE could potentially see massive short-term gains like in 2021 based on speculation and volatility.

The Cons of Buying Dogecoin

However, there are also considerable risks and drawbacks to consider before investing in Dogecoin:

  • No development – The original creators of Dogecoin are no longer involved and there is very little active development work on the protocol.
  • Little real utility – Besides micropayments, Dogecoin has found few mainstream uses cases compared to platforms like Ethereum. The technology is dated compared to newer blockchains.
  • Purely speculative asset – Dogecoin’s value is entirely derived from speculation and hype. There is no underlying utility to give DOGE long-term value.
  • High competition – There are now many alternative meme coins and Dogecoin clones competing for market share and attention.
  • Concentrated ownership – It is estimated that a small number of wallets own the majority of existing DOGE. This centralization goes against the decentralized ethos of crypto.
  • Vulnerable to crashes – Without a real use case, any drop in hype or speculator demand could send Dogecoin value crashing quickly. The May 2021 crash erased $50 billion in market value.

Market Predictions for Dogecoin in 2024

Given the volatile and speculative nature of Dogecoin, it is very difficult to make accurate price predictions. Here are some forecasts for DOGE in 2024 from different sources:

  • Conservative Prediction: $0.10
  • Moderate Prediction: $0.20 – $0.30
  • Bullish Prediction: $1+

Most 2024 forecasts expect the price to potentially range between $0.30 to $0.50 if market conditions are favorable. However, unrealistic hype-based price predictions should be taken with skepticism.

Is Dogecoin a Good Investment for 2024?

Based on the key pros and cons outlined above, here are some things to consider when deciding if Dogecoin is a good investment for 2024:

  • Dogecoin could potentially double or triple in value if it sees renewed hype, especially with Dogecoin advocates like Elon Musk promoting it. But it could just as easily crash on any loss of speculative interest.
  • Dogecoin technology is dated compared to newer smart contract platforms like Ethereum and does not have active ongoing development. This limits long-term potential.
  • Adoption for payments and transactions is growing steadily but is still minor compared to payment leaders like Visa. Most merchants prefer stable national currencies over volatile cryptocurrencies.
  • Dogecoin lacks the utility and fundamental value to be considered a safe long-term store of value compared to asset-backed currencies and commodities.
  • With no supply cap, inflation could dilute Dogecoin value over the long-term even if adoption as a payment method increases.
  • Meme coins and hype-driven assets are highly unpredictable and based on crowd psychology. Valuing them based on technicals is unreliable.

So in summary, while another speculative price run is possible, Dogecoin is a very high risk asset with no fundamental underlying value. It should only be invested in through prudent position sizing and strict risk management for short-term speculation, and not as a long-term hold.

How to Invest in Dogecoin

If you do decide to speculatively invest in Dogecoin, here are some tips:

  • Only invest an amount you can afford to completely lose, as it is a purely speculative asset. Do not take on debt.
  • Use cryptocurrency exchanges like eToro, Bybit or Bitget to purchase DOGE. Avoid unregulated offshore exchanges.
  • Store Dogecoin in a secure wallet off the exchange like Exodus or Coinbase Wallet. Do not leave large holdings on an exchange.
  • Given the volatility, consider dollar cost averaging small amounts over time rather than a large lump sum. This reduces risk from mistimed entries.
  • Keep portfolio allocation to DOGE low, around 2-5% of total assets. Diversification is key to risk management.
  • Have a plan to take profits on any strong rallies to avoid giving back gains. Set price target levels for selling.
  • Keep up to date on Dogecoin and crypto news cycles that could impact price action.


Dogecoin has seen considerable volatility and gains during past hype cycles, but lacks fundamentals and has many risks. It is a speculative asset rather than a long-term investment. Appropriate risk management is essential, and holdings should be a small portion of a balanced portfolio.

While some additional speculative upside is possible, investors should be cautious and not bet more than they can safely afford to lose. With no underlying utility and a dated platform, Dogecoin is unlikely to see real mainstream adoption long-term.

Overall, Dogecoin in 2024 remains a very speculative and likely risky investment. Investors should weigh the pros and cons carefully and engage in prudent position sizing based on their personal risk tolerance.

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Gianluca Lombardi

Gianluca is the editor-in-chief of this site. A finance graduate, he is an active trader who has tested all trading platforms and knows all their secrets. Technology is his passion; he spends much of his free time in the metaverse. Gianluca loves learning new things, researching, discussing and writing about technology, especially when it comes to cryptocurrency and blockchain technology.