Dogecoin Under $1: Time to Load Up or Just Another Meme Mirage?

Dogecoin trades below psychological barrier—sparking frenzy among retail traders chasing the next parabolic move.

The $1 Question

DOGE’s sub-dollar positioning creates perceived upside—retail investors pile in hoping to replicate 2021’s 20,000% explosion. But remember: past performance doesn’t guarantee future returns, no matter how many rocket emojis get spammed.

Market Realities

Volatility cuts both ways—while 20% daily pumps attract attention, equivalent drops vaporize portfolios faster than a leveraged trader facing margin calls. The coin still moves primarily on Elon Musk’s tweets rather than fundamental utility.

Institutional Avoidance

Major funds bypass DOGE allocations—citing lack of institutional-grade infrastructure and sustainable use cases. The “people’s currency” remains dominated by speculators rather than adopters, no matter what crypto-Twitter tells you.

Bottom Line: Buying DOGE under $1 isn’t an investment—it’s buying a lottery ticket where the house controls the odds. Sometimes they pay out—but never forget that casinos build their fortunes on mathematical certainty, not hope.

The dogecoin mascot as a puppy. Image source: Getty Images.

Dogecoin's latest burst of momentum is fading

Dogecoin's speculative rally in 2021 was partly driven by the support ofCEO Elon Musk. He had been sharing Dogecoin-related memes and participating in banter with other enthusiasts on social media since 2019, leading investors to think he might have a long-term plan to create value for the meme token.

That belief reached a fever pitch when Musk appeared on Saturday Night Live (SNL) on May 8, 2021. Rumors swirled that he WOULD make a bullish Dogecoin announcement, but all he did was participate in a comedy skit. In fact, he even joked that his Dogecoin support was a mere "hustle." The token reached a record high of $0.73 during the show, which would prove to be its peak.

After crashing to as low as $0.05 in the aftermath of the SNL saga, the crypto found some momentum again following last year's presidential election. It soared by almost 200% after Nov. 5, reaching a 52-week high of $0.47.

While still short of its all-time high, investors were as enthusiastic as ever because President Donald TRUMP announced Elon Musk would run a new external agency called the Department of Government Efficiency (or DOGE for short), which was tasked with reducing wasteful spending to help lower the national debt.

Calling the agency Doge was a deliberate reference to Musk's favorite cryptocurrency. There was never any indication that it would serve a purpose in this new agency, but it didn't stop investors from buying it just in case Musk revealed a concrete plan to create real value.

But no such plan came to light, and he has since left DOGE to focus on his various business ventures. As I write this, the token is trading at $0.21, which is 55% below its recent 52-week high.

Dogecoin's never-ending supply growth could prevent further upside

Musk's dwindling influence over Dogecoin's price might not be its biggest issue. The token still lacks a function in the real world, with just 2,103 businesses around the world willing to accept it as payment for goods and services, according to crypto directory Cryptwerk. Plus, it has a supply issue that could be a major barrier to sustainable upside over the long term.

There are around 150.5 billion Dogecoin tokens in circulation, and although there is a cap on how many new tokens can be mined each year, there is no end date. In other words, new tokens will be introduced until the end of time, which means existing investors will suffer constant dilution.

Scarcity is often what makes an asset valuable. Take, for example, which has a capped supply of 21 million coins. Its price continues to rise because investors know additional Bitcoins will never be created, so they feel confident buying and holding the asset for the long term.

Since scarcity will never be a feature for Dogecoin, I think its chances of reaching $1 are almost zero. Therefore, this is one cryptocurrency investors might want to avoid.