The legendary meme token’s price surged recently in response to the appointment of Elon Musk to Donald Trump’s cabinet
Seminal meme token Dogecoin (DOGE-USD) will hit the coveted $1 mark in 2025, more than a decade after its creation, according to an X post by Galaxy Digital.
“Dogecoin will finally hit $1, with the world’s largest and oldest meme coin touching a $100bn market cap”, wrote Alex Thorn, head of research at digital asset and blockchain company Galaxy Digital, in the firm’s “2025 Crypto Predictions report” thread.
Our 2025 Crypto Predictions report is here! @glxyresearch shares 23 bold predictions for the year ahead. From Bitcoin’s potential to market-shaping trends, we’ve got it all covered. Check out our predictions👇 pic.twitter.com/AcLKj67ncg
— Galaxy (@galaxyhq) January 2, 2025
Dogecoin has garnered considerable attention in recent weeks following President-elect Donald Trump’s appointment of Tesla (NASDAQ:TSLA) CEO Elon Musk as head of the Department of Government Efficiency, or D.O.G.E. Historical surges in the price of Dogecoin have been attributed to Musk’s vocal support for the token.
Thorn referenced Musk and the new department, stating: “However, the Dogecoin market cap will be eclipsed by the Department of Government Efficiency, which will identify and successfully enact cuts in amounts exceeding Dogecoin’s 2025 high-water mark market cap.”
Thorn’s $1 call implies a significant upside from Tuesday morning’s Dogecoin price of $0.38 to $0.39. Dogecoin previously peaked at around $0.70 in 2021.
Meanwhile, a CoinDesk report observed increased interest in Dogecoin from “whales” or influential, high-net-worth market participants. The report noted a spike in Dogecoin transactions exceeding $100,000 over the weekend.
Analysis: Be careful with meme coins
Chatter about the Dogecoin price may prompt a spike in retail meme-coin buying activity. However, meme tokens tend to be low-priced, volatile, and carry a high risk level.
A weekend of elevated whale interest isn’t enough to form a pattern and might just be an outlier event. Remember, financial whales can sell assets as quickly as they can buy them.
Moreover, the connection between D.O.G.E. and Dogecoin is mostly just due to the similarities between the names. If whales and retail traders recently bought Dogecoin on a whim, this probably won’t be a long-lasting phenomenon.
This doesn’t suggest that Dogecoin can’t reach Thorn’s $1 price target. The 2021 meme coin rally showed that extraordinary price moves are possible with low-priced cryptocurrencies.
However, this works both ways. Deep declines are just as possible as multi-bagger rallies, so caution is warranted for Dogecoin devotees seeking to ride the backs of financial whales.
