The year of 2020 has not been tough on everything. The crypto market is a pleasant exception. Most digital currencies, including Dogecoin, were picking up steam. The major difference between Dogecoin and other cryptocurrencies is that it is neither an inflationary nor deflationary digital currency. In other words, there is no limit on the number of tokens in circulation. This feature enables Dogecoin to behave more like a fiat currency. Interestingly, it was invented as a joke to mock dubious cryptocurrencies. At present, it ranks 10 th popular digital currency, now trading at $0.05 per token and having the market capitalization of $7.33 billion.
What can be a driving force for Dogecoin? What lies behind a rapid advance of this cryptocurrency in the recent years? In fact, it owes its growing popularity to social media and favor with celebrities. In particular, Elon Musk gave a thumbs-up to Dogecoin in his tweets. This propelled its rally, arousing interest among investors. Besides, Gene Simmons said that he would buy the token. Rapper, singer, and songwriter Lil Yachty also decided to invest in the cryptocurrency.
All in all, Dogecoin has shot up almost 900% since January 2021. The volume of Dogecoin transactions surpassed the one of Bitcoin-related transactions. This trend is expected to continue through Q2 2021. Under the optimistic scenario, Dogecoin is likely to trade at $0.0754225 per token in June and $0.076733 in July. In the worse-case scenario, it could decline to $0.0521378 in the summer. Crypto analysts foresee a further climb in Q3 2021. When it comes to long-term forecasts, predictions vary. Dogecoin is expected to trade at about $0.0781554 on average through Q3 2021.
It could close the year of 2021 at the level of nearly $0.087006 per token. The crypto currency is projected to enter the year of 2022 on the optimistic note at levels above $0.081. The bullish prospects remain valid for the whole 2022. Next year, Dogecoin could conquer the historic peak of $0.0941731 per token.
Crypto fans reckon that the year of 2023 will be even more successful for the popular digital token. The strongest level for 2023 is expected at near $0.1096323 and the lowest level could be $0. 0649150. Dogecoin could close 2023 at the price of $0.0745500.
To sum up, demand for Dogecoin is set to remain high, so it is going to trade at elevated levels.
Dogecoin has still been under the spotlight. Time will tell whether Dogecoin fans are right in their expectations.