Is Dogecoin (DOGE) a Good Crypto to Buy in 2023
Dogecoin is one of the most Googled cryptocurrencies in the industry.
In fact, the Reddit community following Doge (over 4 million) is the largest of any token except for Bitcoin. Add to the mix a billionaire backer in Elon Musk – and the chance of a Twitter integration in the next 12 months – and there’s reason to be extra bullish about Dogecoin.
But is Dogecoin a good crypto to buy in 2023?
Below, we’ll take a look at the Dogecoin roadmap and chances of DOGE hitting $1 in the new year.
Two bullish cases for Dogecoin in 2023
Will Dogecoin be used on Twitter in 2023?
Dogecoin pumped over 150% in price in late October, after Elon Musk walked through Twitter HQ’s doors as its new private owner.
Let’s unpick why. Dogecoin hit its all-time high of $0.74 in May 2021 after Elon Musk issued a series of Tweets – calling DOGE his ‘favorite’ crypto – and then appeared on Saturday Night Live. Musk continued his favoritism of Dogecoin by accepting DOGE as payment for Tesla merchandise, and even allowing Tesla car owners to pay to charge their vehicles in DOGE at select supercharging stations.
So when Musk walked into Twitter, the token pumped to a price of $0.15.
But the big question remains: will Dogecoin be used on twitter in 2023?
Developers are keen to implement additional utility to boost the coin’s value proposition – e.g. speeding up transactions – and there’s speculation Elon Musk will find a use case for DOGE on Twitter just like he has with Tesla.
There’s a good chance Dogecoin will at least be accepted to pay for Twitter Blue subscriptions.
Then again, with Binance a major investor in the Twitter takeover, there’s every chance that BUSD or BNB might be the chosen crypto.
Dogecoin goes to space in January
Countdown has started for the launch of SpaceX Falcon 9.
As Elon Musk Tweeted when announcing it, it will be the first space mission paid for in Dogecoin as well as the ‘1st crypto in space’ and the ‘1st meme in space’.
With the launch expected to happen in mid-to-late January, this could well be a catalyst for a short-term Dogecoin price pump. Keep an eye on the date and you could get lucky with a strategic Dogecoin purchase before investors pile on.
Two bearish cases for Dogecoin in 2023
Dogecoin inflation will bring prices down long-term
Did you know that Dogecoin is inflationary?
It’s true. A total of 5 billion DOGE is added to supply each year.
Inflation affects the Dogecoin price. The DOGE price would fall over 3% each year if the market cap remains the same. Dogecoin also requires $5 billion more investment each year in its quest to reach $1.
Compare Dogecoin inflation to fixed-supply currencies like Bitcoin, or the current leading hyper-deflationary token in crypto: EverGrow.
EverGrow is on track to burn 10-20% of its supply in the next 12 months. This could make prices rise 21% even if the market cap remains the same. Add to that an innovative crypto ecosystem helping thousands of users make extra passive income through an NFT marketplace, a crypto content subscription app, and a play-to-earn gaming metaverse experience – and EverGrow has a lot of bullish sentiment in 2023.
While Dogecoin has popularity, its structural limitations (it was built in about three hours as a joke) may start to weigh on it in 2023.
Read more about EverGrow here: https://evergrowegc.com/
Smart contracts make Dogecoin difficult to adapt
Dogecoin faces other limitations besides inflation.
The Dogecoin blockchain can’t interact with smart contracts. Smart contracts are the building blocks of decentralised finance (DeFi) and NFT applications, and without them it’s hard to integrate Dogecoin payment systems and apps.
For example: An integration into Twitter would be tough to pull off.
While there’s a lot going for Dogecoin in 2023, a majority 71% of industry experts surveyed by Finder.com urged investors to sell their Dogecoin. Lack of use cases and limitations were the key reason experts were not backing Dogecoin in 2023.