Although Dogecoin (DOGE-USD) has declined more than 80% from its all-time high of 73.76 cents, it currently has the potential for a significant rebound. Its current price of 13 cents is likely to be undervalued considering the popularity of Dogecoin.
According to Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Trends, Dogecoin is more popular than Cardano (ADA-USD), Ripple (XRP-USD) and Solana (SOL-USD). All of them have a higher market capitalization than Dogecoin, according to CoinMarketCap. Dogecoin was also the fourth-most-searched news term on Google in 2021.
Despite its popularity, DOGE receives a significant amount of criticism from the cryptocurrency community due to it having a higher inflation rate than other cryptocurrency projects. It is also not seen as a serious project by a large portion of the cryptocurrency community due to the project starting as a joke.
Thus, many people in the cryptocurrency community refuse to invest in DOGE. However, I believe that it is all about to change.
Dogecoin’s Plans for Greater Utility
The nonprofit Dogecoin Foundation seeks to fix the current problems of DOGE and promote more adoption. The foundation launched a manifesto and a trailmap for its plans to expand into a more robust network.
The implementation of these technologies is likely to propel the value of DOGE as more people start taking the project more seriously. Dogecoin also has plans to migrate to a PoS (Proof-of-Stake) system with the help of Ethereum (ETH-USD) co-founder Vitalik Buterin. This migration will significantly reduce its inflation rate and power consumption, making Dogecoin an environmentally friendly project.
According to the Dogecoin Foundation trailmap, they are also working on:
“… crafting a uniquely Doge proposal for a ‘Community Staking’ version of PoS that will allow everyone, not just the big players to participate in a way that rewards them for their contribution to running the network, and at the same time gives back to the whole community through charitable causes.”
DOGE still has a long way to go in terms of adoption and acceptance within the entire cryptocurrency community. After all, Dogecoin may be accepted by around 2,000 online retailers. But that’s a drop in the bucket compared to the over 15,000 that accept Bitcoin.
The renovation of the whole network, promised by the Dogecoin Foundation, will also undoubtedly take a very long time. The trailmap says to look for more information on the change throughout 2022. However, its long-term prospects are still undeniable.
The Big Players Backing Dogecoin
Another factor that reinforces Dogecoin’s future long-term growth is the fact that the project is enthusiastically promoted by prominent figures such as Elon Musk, the founder of Tesla (NASDAQ:TSLA), Vitalik Buterin, the founder of ETH, rapper Snoop Dogg and billionaire Mark Cuban.
The most influential advocate for the adoption of Dogecoin is Elon Musk. With over 74 million followers on Twitter (NYSE:TWTR), he regularly tweets in support of DOGE. He also used Twitter to announce that his company, TSLA, will accept DOGE as a payment method for TSLA merchandise.
Long story short, when the world’s richest person and the founder of the second-largest cryptocurrency network are religiously promoting Dogecoin, you need to ask if it may be one of the most undervalued crypto projects. Thus, although the currency is in a short-term decline, I think it is likely that Dogecoin can generate a significant return in the long term.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Omor Ibne Ehsan is a writer at InvestorPlace. He is also an active contributor to a variety of finance and crypto-related websites. He has a strong background in economics and finance and is a passionate advocate of blockchain technology.