So, what drove its value to such excellent performance?
The most influential factor was the bullish crypto market noticed from December 2020. Post the bitcoin halving, BTC and the entire crypto market began a bullish run. However, a larger bullish statement happened at the start of 2021 when bitcoin managed to triple in value. Most of the other cryptos followed the course with DOGE being one of the beneficiaries.
While bitcoin contributed vastly, external support by influencers and KOL expanded DOGE’s growth. Elon Musk and Snoop Dog are among the two major KOLs who impacted Doges prices. Their tweets led to an immense increase in the communities of those top crypto assets.
U definitely gonna be able to get my NFTs with Dogge !! Uhearme! Coming soon.
— Snoop Dogg (@SnoopDogg) March 26, 2021
Furthermore, another factor that vastly contributed to the growth in Dogecoin is the increase in use cases. In 2021, multiple companies and platforms accepted DOGE payment options. In the early months, Dallas Mavericks accepted the use of the coin for purchasing tickets. Mark Cuban, the Dallas Mavericks owner, tweeted that “DOGE is the one coin that people use for transactions.”
Because Doge is the one coin that people actually use for transactions. We take many others via @BitPay . But people spend their Doge and that means more businesses will start taking it. The greatest inhibitor to it’s growth is that you can’t spend the Doge you buy on Robinhood https://t.co/TrhT9pYkcb
— Mark Cuban (@mcuban) April 26, 2021
Finally, Dogecoin is one of the crypto networks with the biggest fanbases. The official Dogecoin twitter page has a massive 2.7 million followership. It’s also the most famous coin on Reddit, having originated from that.
As soon as the coin hit its ATH, it lost over 70% in value. The price plunge marked the start of a bearish statement, triggered by factors affecting BTC. Elon Musk was criticized on social networks, with people claiming he is planning a pump and dump scheme. But, at the end of 2021, Musk still supported DOGE, contributing to the reformation.
Elon Musk’s impact and the Bitcoin price actions caused the changing prices in Doge over the year 2021.
What Awaits DOGE in 2022?
There is a lot of positivity within the DOGE community concerning the coin in 2022. The crypto space will indeed grow further next year, and that will be noticeable from cryptos like Dogecoin. In 2021, the coin benefited from broad institutional adoption as a payment option. The same will continue in 2022, with more retailer shops and exchanges endorsing DOGE.
Tesla was vastly linked with Dogecoin in 2021. Some investors tried to convince Elon to accept it as a payment alternative for Tesla. While nothing is official yet, the coin’s enthusiasts can follow the developments in 2022.
In mid-2021, some DOGE enthusiasts suggested a new use case for it in hot tubs. That would increase the relevance of the coin in daily activities. Elon seemed to have loved the idea, but it’s still under exploration. Enthusiasts will love to see more on the use case come 2022.
There are already several DOGE killers during this report’s writing. However, in 2022, the crypto space may notice the rise of more Dogecoin killer tokens and coins like Floki. If any of them is like Shiba Inu, DOGE may face more competition.
Considering all the expected developments, 2022 will likely be a more significant year for the coin. The question is, how will the above developments affect its price?
Dogecoin 2022 Price Prediction and Technical Analysis
Some experts anticipate that by mid-2022, DOGE will hit the $1 mark. Others expect the price to go as high as $1.5 in the next five years.