Investing

Dogecoin (DOGE) 2030 Price Prediction: Bull, Bear, and Base Forecasts

Chris MacDonald

Published: April 3, 2024 12:30 pm

Meme coin mania is far from over. In fact, many investors suggest that now could be the time to take a shot at capturing some of the upside Dogecoin (CRYPTO:DOGE) and its meme coin followers are seeing. Over the past week, Dogecoin has seen its price appreciate by nearly 20%, and despite a recent downtick, there’s plenty of momentum to focus on with this Shiba Inu-inspired token.

Now trading at a market capitalization of nearly $30 billion, Dogecoin is more valuable than many key companies. In recent days, I read that Dogecoin briefly surpassed Deutsche Bank (NYSE: DB) in terms of its valuation, and that’s something that investors can ponder for a minute.

The question is whether this momentum is sticky enough to continue, or if the writing is on the wall for this project that very openly doesn’t provide much in the way of utility. Here’s the bull, bear and base case scenarios we’re considering for Dogecoin right now.

Dogecoin Bull 2030 Forecast

Source: Chinnapong / iStock Editorial via Getty Images

Most of Dogecoin’s recent momentum appears to be tied to key speculative fervor around the meme coin space. That said, there are some notable token-specific catalysts that are at play with this meme token that are worth considering.

First and foremost, Dogecoin futures contracts are set to be released on Coinbase (NASDAQ: COIN) sometime later this month, according to a filing put forward on March 7. These future contracts will allow investors and speculators to take leveraged positions on Dogecoin’s movements, adding liquidity to the already heavily-traded token, and allowing for even greater investor interest in this volatile digital asset.

Additionally, a recently-announced initial exchange offering for a Dogecoin spinoff, Dogecoin20, has been generating plenty of buzz in the community. This token is expected to hit exchanges on April 20 (or 4/20), so-called “Doge Day” for those in the community. This token should continue to raise Dogecoin’s overall profile, and if it’s successful, could provide yet another speculative catalyst for DOGE to head higher.

Finally, there’s plenty of hype around the potential for Dogecoin’s future integration with X Payments, a platform Elon Musk hopes will revolutionize the online payments space. If Dogecoin is a part of this roll out, those suggesting the token has little to no utility may have to rethink their thesis. This has bulls excited, and rightly so, though the timing of this potential catalyst remains unknown.

There are certainly plenty of potential catalysts to take into consideration for Dogecoin, in addition to the known quantities investors are clearly pricing into this token right now. Trading near a 2-year high, I can see Dogecoin challenging its previous all-time high this year or next, and a move above $1 per token in a bullish scenario by 2025 is likely. For those who think Dogecoin can maintain this outsized momentum for the next six years, a 2030 forecast of $2-$3 per token is a range we feel comfortable with putting forward.

Dogecoin Bear 2030 Forecast

Source: Chris M / Courtesy of 24/7 Wall Street

Dogecoin’s speculative status is well known. This cryptocurrency was initially created as a joke, with no apparent utility driving its valuation from day one.

Accordingly, while it’s clear that Dogecoin has a strong and vibrant community, it’s also true that at present, investors can’t do much with Dogecoin other than trade this asset. Of course, the same can be said about other asset classes. But there sure is plenty of evidence to suggest that Dogecoin fails the litmus test as a store of value, so that argument is out of the question.

For bears who believe that (1) Elon Musk’s X Payments network won’t get off the ground, and/or this catalyst is a likely bust even if Dogecoin can be used for payments; (2) outsized leveraged bets on Dogecoin will eventually blow up, creating a cascade of selling pressure for an extended period of time; and (3) that any assorted meme token spinoffs will see a similar fate over time, then it can certainly be the case Dogecoin could traverse much lower than its recent “crypto winter” lows.

We think in a bearish scenario, Dogecoin’s overall market capitalization could fall well below $1 billion, pegging this project at a value of roughly $0.006, and that’s excluding the inflationary effects of new tokens being added to the ecosystem.

Dogecoin Base 2030 Forecast

Source: Chinnapong / Shutterstock.com

The base case for Dogecoin is that some semblance of its existing community remains six years from now, and continues to support this token’s valuation. Undoubtedly, most investors (considering a six year time horizon) would likely place a conservative estimate with regards to how vibrant and vigorous traders can be with speculative assets. Six years is a long time. And if the inverted yield curve we’ve had for well more than a year does turn into a recession, there’s likely going to be some selling pressure over this period of time for all risk assets.

Thus, we think a base case valuation for Dogecoin in the $0.05 range by 2030 makes sense. Assuming it’s more of the same, and this economic cycle can continue in some way shape or form, Dogecoin will hold some value. After all, assets only have value because investors say they do. That’s the name of the game in the world of meme cryptos.