Can Dogecoin price really hit $1 in 2023? Analysis

After all the scandals that rocked the cryptocurrency industry this year, Dogecoin hitting a price of $1 would be redemption.

Dogecoin reach a price of $0.74 during the crypto bull market in 2021. The $1 Dogecoin was incredibly close. But a bridge too far. The price of Dogecoin has since fallen -86% as centralised exchanges and protocols collapsed like dominoes over the past 12 months. 

So can Dogecoin hit $1 price in 2023?

Here’s everything you need to know.

Will Twitter save Dogecoin from its current $0.08 price?

All eyes are on Twitter in 2023. With Elon Musk at its helm, it’s likely the social media giant could accept Dogecoin just as happened for online purchases of Tesla and SpaceX merchandise.

Elon Musk was behind the Dogecoin all-time high of $0.74 – it happened as he appeared on Saturday Night Live.

Confirmation that Musk was taking over Twitter created a Dogecoin price pump of 150% to hit $0.16. But since then, the Dogecoin price has fallen back down to $0.08. If there’s one man who can turn things around fast it’s Elon Musk. 

Just how will Twitter make use of Twitter? That remains to be seen. Most likely is seeing cryptocurrency accepted to pay for Twitter Blue subscriptions. All other touted solutions like using the Dogecoin blockchain to tackle spam bots have been scrapped so far.

If an announcement of Twitter accepting Dogecoin happens while markets are healthy, it could be the catalyst for a $1 Dogecoin.

What if Twitter fails to deliver with Dogecoin?

Dogecoin’s most commonly cited problem is inflation. The current rate of inflation is about 4%, as 5 billion DOGE enter supply each year to reward Dogecoin miners for validating transactions on the blockchain.

In practice, it means that a $1 Dogecoin gets $5 billion further away each year. 

There are currently 133 billion Dogecoin in circulation – by the end of next year, that will be 138 billion Dogecoin. A year after it will be 143 billion Dogecoin. And so on. For 1 DOGE to equal $1, the market cap needs to equal the circulating supply.

Dogecoin currently has a market cap of just $10 billion. 

So if Twitter fails to deliver next year with Dogecoin, investors could become increasingly desperate for an answer. Many have suggested that Dogecoin needs to cap its supply, or start burning tokens like EverGrow does.

EverGrow has become a hit altcoin in late 2022, after it burned through nearly 1% of its supply in November alone. It means that every year EverGrow is set for higher prices. The EverGrow price already pumped 43% in November after the token burning.

It means that on paper EverGrow is ready to hit $1 in price before Dogecoin – and it’s only worth $0.00000009 today!

This is the risk with Dogecoin. Currently, the bullish case is reliant on one man. And Elon Musk just published a Twitter poll on 19th December asking users whether he should step down as the Twitter head or not – so far, the response is 58% ‘yes’.

Should I buy Dogecoin today?

Without any assurance on the future of Dogecoin in Twitter, DOGE lacks a bullish case. If Elon Musk honours the Twitter poll and steps down it could spell disaster for Dogecoin.

This is the risk of buying Dogecoin today.

If things go right, you could be set for price pumps well over 150% – and even all the way up to $1.

If not, you could be among the thousands of people who are -80% down on their Dogecoin investment. Without any other lifelong, prices could plunge even further.

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Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice – it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.