1. Introduction to Dogecoin

Dogecoin was born in 2013, based on the PoW consensus mechanism, generating new blocks every minute, with a fixed block reward, no total supply limit, and an inflation rate of about 3.5%. Its ‘fair distribution’ mechanism and community-driven culture have attracted a large number of retail users’ support, maintaining a low price and high liquidity in the long term. Despite the lack of complex functions, DOGE still occupies a place in the cryptocurrency market due to its meme properties and entertainment value.

2. Historical Price Trends Review

Between 2014 and 2020, DOGE’s price remained low, but in 2021, it surged to a historical high of $0.74 due to the market bull run and celebrities like Musk. Subsequently, it continued to fall with market adjustments. By the end of 2024, influenced by social media and meme trends, the price once again rose to around $0.48. Overall, DOGE’s surges are mostly driven by emotions, leading to extreme fluctuations.

3. The main factors affecting price fluctuations

• The celebrity effect and social media buzz: Musk’s remarks have repeatedly triggered price surges.
• Overall market trend: significant fluctuations follow the trend of Bitcoin. It performs actively in a bull market and quickly falls back in a bear market.
• Token mechanism and inflation pressure: With an annual addition of about 5 billion DOGE, it lacks long-term scarcity support.
• Limited real-world applications: Although supported by companies like Tesla and AMC for payments, DOGE lacks technological evolution or DeFi expansion.

4. Summary of Important News (Past Year)

• Kabosu’s death prompts Musk’s mourning, and the price of DOGE soars 5% on the same day.
• By the end of 2024, the price rebound once pushed the market value of DOGE surpassing Porsche, driving short-term market enthusiasm.
• ETF applications have attracted attention, with entities like Grayscale proposing DOGE spot ETFs, and investors looking forward to compliant channels.
• The U.S. government’s ‘DOGE’ plan was misunderstood, leading to a short-term surge of about 14%, which was later clarified and quickly fell back.

5. Current Market Overview (April 28, 2025)

The current price of DOGE is about $0.18, with a market capitalization of about 27 billion US dollars, ranking eighth in market capitalization. The total circulation is about 149 billion coins, with an annual inflation rate of 3.45%. The year-to-date increase exceeds 22%, with a daily average trading volume of over 1 billion US dollars, and liquidity and attention remain high.

6. Future Trends Outlook and Potential Challenges

On-chain data shows that some large holders are increasing their positions at low levels, with technical support for a short-term rebound to $0.31; if the ETF is approved, it will enhance capital inflows. However, it faces three major long-term challenges:

• Weak value support, single application scenario;
• The unlimited inflation mechanism suppresses the long-term upward price space;
• Global cryptocurrency regulation is becoming stricter, and policy risks are increasing.

Investors should carefully evaluate its future potential in combination with market cycles, regulatory changes, and the development of the DOGE ecosystem.

Conclusion

Dogecoin has evolved from an internet joke to a phenomenon asset, reflecting the importance of community and emotions in meme coins. Despite still having short-term potential, the lack of strong underlying value and high volatility means that long-term investment requires extra caution. Faced with future uncertainties, rational decision-making is particularly crucial.