In 2013, friends Billy Markus and Jackson Palmer created Dogecoin as a joke inspired by the Doge meme. Despite its initial humorous intent, Dogecoin now boasts a market capitalization of $51 billion, with a value of $0.35 per token. It outperformed top cryptocurrencies in 2024, gaining 250% after President Trump’s election.

Elon Musk, a financial backer of Trump’s campaign, showed interest in Dogecoin in 2021, leading to a 15,769% surge. However, Dogecoin’s lack of real-world utility and Musk’s social media antics resulted in a 90% value drop by mid-2022. Dogecoin remains a speculative asset with no tangible support beyond Musk’s influence.

With 147.7 billion tokens in circulation, Dogecoin faces supply challenges that limit its ability to sustain value. The token’s price could reach $1, but its infinite supply and speculative nature make it vulnerable to significant price fluctuations. Investors should approach Dogecoin cautiously due to its lack of fundamental support for its value.

While Dogecoin’s recent rally stalled at $0.47, investors should be wary of its speculative nature compared to more established cryptocurrencies like Bitcoin. The current bullish sentiment driven by the crypto-friendly Trump administration could lead to further price increases, but caution is advised due to the token’s lack of concrete fundamentals.

Investors should exercise caution with Dogecoin, as its speculative nature and lack of real-world utility make it a risky investment. Despite the potential for short-term gains, the token’s value is not supported by fundamental factors, leading to the likelihood of significant value declines in the future.

Read more at Nasdaq: Should You Buy Dogecoin While It’s Under $1?