The Motley Fool, a financial insight provider, has stated that investing in Dogecoin at present is considered a lucrative opportunity for those looking to reap high rewards in the future.
The article details that despite the significant drop in the prices of various cryptocurrencies over the past year, many investors still hold onto their optimism that Dogecoin, the popular meme-inspired digital currency, could make a comeback.
According to the firm, timing can be everything when it comes to cryptocurrency investments. Those who were fortunate enough to buy and sell Dogecoin at the right moment in 2021 might have allegedly seen impressive returns.
However, the firm states current crypto landscape is vastly different from that time, and the wisest investments are the ones that have the potential for long-term growth.
Most importantly, Dogecoin has undergone some recent network improvements, including the launch of Dogechain in 2022 to introduce smart contract functionality to the blockchain. Dogecoin still needs to catch up to its competitors regarding real-world applications and intrinsic value, according to them.
Many in the community also still believe while it’s possible that Dogecoin could make a comeback in the future, its lack of notable utility means that investors should exercise caution when considering it as a potential investment opportunity.
It is evident from previous speculations that one of Dogecoin’s key strengths is undoubtedly its community, which has remained fiercely loyal to the cryptocurrency even after its dramatic crash in 2021. However, according to proponents in the market, when a digital asset’s value is rooted mainly in its popularity, it can be risky.
Motley Fool concludes that should Dogecoin’s popularity spike again, it could undoubtedly see significant short-term gains. Although, it will be exceedingly challenging for Dogecoin to sustain long-term growth based solely on its current popularity.
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Source: Cryptocurrency - investing.com
