Dogecoin's Climb To $1 By Year-End: A Possibility Or A Pipedream?

Dogecoin DOGE/USD has been one of the most volatile assets this year, going to an all-time high of 73.76 cents in early May from 0.47 cents at the end of last year. From the all-time high hit on May 8, the meme currency has come back significantly and has been consolidating between 20 and 30 cents in recent sessions.

Doge's Humble Beginnings and Meteoric Rise: The altcoin was created in 2013 by software engineers Billy Markus and Jackson Palmer when the Bitcoin craze began to take hold. It was conceived as a joke currency about monetary value and the Internet, with the Shiba Inu dog adopted as the mascot for the crypto.

Doge remained muted until the start of 2021, when the retail frenzy around meme stocks such as GameStop Corp. GME and AMC Entertainment Holdings, Inc. AMC became contagious and spread to the crypto universe as well.

High-profile backings by Tesla, Inc. TSLA's Elon Musk and Mark Cuban, the owner of NBA's Dallas Mavericks, added strength to the rally.

Doge had soared about 15,600% to its early May high and has lost about 66.8% since then.

Related Link: HOW TO BUY DOGECOIN (DOGE)

What's Holding Doge Back? Some of the recent weakness is attributable to the across-the-board softness seen in the crypto market. Additionally, Doge is a speculative asset, which is traded for profit, and has very limited use cases.

There is no denying the fact that Doge is gaining some mainstream acceptance, with Cuban's Dallas Mavericks, Kronos Advanced Technologies Inc. KNOS, Air Baltic and easyDNA among the companies that have begun accepting Doge as a payment option. However, compared to a few other digital currencies, the meme currency is yet to make serious inroads.

Does Doge Have a Path to $1? Doge's greatest strength is its loyal, lively community, and these fanatic supporters have remained with the currency through thick and thin.

The Dogecoin community extensively uses the currency for philanthropic purposes, providing donations to organizations and causes.

After vociferously backing Doge through multiple tweets, Musk has been silent on the meme currency for a while now. In fact, expectations that the Tesla founder would mention the currency in his May 8 appearance on "Saturday Night Live" drove Doge to its all-time high. Musk resuming his Doge chatter would potentially be a boost for the meme currency.

At last check, Dogecoin was seen trading down 0.61% at 24.52 cents.

Related Link: Dogecoin To Continue Higher Until It Hits A Wall: Analysis