Certain investments are tempting simply because of their ultra-low price. This, plus years of viral fame/notoriety, and the enduring support of a gregarious billionaire, are factors keeping Dogecoin (DOGE 2.69%) on investors’ radars.
Of course, none of these are sufficient reasons for anyone to snap up hundreds, thousands, or even millions of these dirt cheap meme coins. Instead, let’s look at whether Dogecoin is fundamentally sound enough to be the most beneficial, long-term crypto investment we can buy for under a buck.
Not always a good boy
Dogecoin is the leading meme coin, and with a market cap approaching $14.7 billion it’s the 10th largest cryptocurrency by that metric. It was launched in 2013, and despite numerous peaks and dips, it’s never really come close to hitting $1. Its all-time high was under $0.74, reached the day in 2021 Tesla CEO and leading Dogecoin hype man Elon Musk guest-hosted Saturday Night Live.
Image source: Getty Images.
As you might guess from that market cap figure and its penny-stock-like price, there are a great many Dogecoins in the ether. Unlike other cryptos, most famously Bitcoin, the supply is not capped. The most recent data from crypto trading site Coinbase Global puts the current circulating supply of Dogecoin at over 170 billion. And yes, that’s “billion” with a B.
As its developers freely admit, Dogecoin was created as a parody of cryptocurrencies like Bitcoin. Over the years, it’s certainly surprised more than a few investors and crypto-watchers by not only being popular as a top-ten crypto but also sufficiently so to survive as a compelling investment, at least for some. It’s even inspired the creation of dedicated spot crypto exchange-traded funds (ETFs).
Today’s Change
(-2.69%) $-0.00
Current Price
$0.08
Key Data Points
Market Cap
$13B
Day’s Range
$0.08 – $0.09
52wk Range
$0.08 – $0.30
Volume
593.6M
A shaggy dog
Again, though, none of the above necessarily makes Dogecoin a good investment. To their credit, both the coin’s developers and certain aficionados have attempted to build some utility around it. On the Dogecoin blockchain, holders can transfer the crypto to others and, to a limited extent, buy goods and services (for example, Tesla merchandise, but not, crucially, any of the automaker’s vehicles).
I should note that this utility does not extend to functionalities boasted by other cryptos, such as the smart contracts that underpin compelling blockchain offerings, such as decentralized apps (dApps).
So, lacking much utility and priced as a low-value asset, Dogecoin likely won’t shed its reputation as a fun crypto anytime soon, perhaps ever. Its spikes have been due to one-offs like that Musk SNL appearance, and it has little room to grow meaningfully because there’s almost nothing fundamental supporting it. To me, Dogecoin doesn’t feel like a serious asset with good potential. Even in the volatile world of sub-$1 investments, there are more promising buys.