The price of Bitcoin has increased substantially over the past 12 months, and it seems to be getting closer to its all-time high. There are many reasons behind its impressive performance, including the approval of its first spot ETFs, the April halving, two interest rate cuts, and the victory of Trump in the election. But there’s another cryptocurrency that has been gaining momentum: Dogecoin. While the meme coin was created in 2013 as a parody of Bitcoin, Dogecoin price has more than quadrupled over the last 12 months. It’s not a secret that Elon Musk has continuously promoted this meme coin, fueling its price increases. Not only that, but Musk even implemented Dogecoin as payment at Tesla back in 2022 for certain purchases.
Dogecoin’s recent rally was fueled by Trump’s victory, helping the meme coin surpass Bitcoin. This is quite an incredible performance for a cryptocurrency that didn’t originally plan to become popular. Does this mean that it’s time for investors to forget about Bitcoin and focus their attention on DOGE instead? Keep reading to find out.
Dogecoin has been on fire lately, with daily active addresses hitting new all-time highs
Dogecoin has displayed impressive stability after marking 163% in November, and although it has faced slight fluctuations, the meme coin is still experiencing a bullish momentum. In fact, its active addresses have hit an all-time high, exceeding 1.33 million daily participants, with the surge indicating heightened network demand. Such increased market participation is often associated with rising prices, as high activity translates into broad adoption of DOGE.
The expanding transaction volume of the meme coin indicates widespread engagement, which further contributes to the credibility of Dogecoin. Increased network activity has historically supported the rise of prices, and this trend indicates that DOGE could capitalize on its current market performance, with factors like investor enthusiasm and broader market cues sustaining upward pressure on its price. The DAA divergence metric is indicating a solid buy signal for Dogecoin, further bolstering the outlook of the meme coin for the future, highlighting the harmony between enhanced market participation and increased prices, reflecting healthy growth. As network activity and price movements are correlated, this can only showcase that DOGE is positioned for ongoing gains. Interestingly, 2025 is expected to be a bullish month for the meme coin, more precisely, in February, when it’s anticipated to trade 195.13% higher than it is today. Other predictions also suggest that DOGE will be incorporated as a payment method into more businesses by next year, and it would be possible to see new all-time highs due to the 2024 Bitcoin Halving’s impact kicking in. Furthermore, by 2030, DOGE and other meme coins are expected to increase their utility prospects and gain widespread adoption, thus changing their status from simple memes to acceptable payment methods.
Differences between Bitcoin and Dogecoin
Dogecoin and Bitcoin are both well-known cryptocurrencies; however, they are very different in terms of how they originated, as well as their features and uses. While Bitcoin was created to establish an alternative banking system that isn’t subjected to the financial rules of the state and gives people more control over their money, Dogecoin’s main aim was to mock the hype over digital currencies. However, things took an unexpected turn, and DOGE gained massive attention from the crypto community. Historically, both Dogecoin and Bitcoin have showcased tremendous price growth, appreciating massively since they were introduced over a decade ago.
Since its inception, Bitcoin has offered massive gains to patient investors, and Dogecoin, which started at a fractional penny valuation, has reached incredible heights lately. In terms of utility, however, there’s a clear difference between the two, as Bitcoin serves as digital gold and is designed for long-term value storage, while Dogecoin is built solely around fun and community engagement. Rather than being driven by financial fundamentals, DOGE is only backed up by the online culture built around it. Bitcoin has been recognized as a great alternative to fiat money (and a hedge against inflation), gaining institutional support, which has further strengthened its reputation. However, Dogecoin is still largely speculative, and its critics still point out that it doesn’t have any utility, as it’s only a meme-based project. Its valuation is strongly correlated with retaining a loyal social following, compared to Bitcoin, which already benefits from greater credibility in the market.
So, should you choose Dogecoin instead of Bitcoin?
DOGE certainly is in the spotlight at the moment, but that doesn’t automatically make it a better investment than Bitcoin. So far, the latter has been the most established cryptocurrency, and there’s a good reason for that. Given its growing institutional adoption, deflationary mining emissions, and network effects, Bitcoin has earned investors’ confidence in terms of its long-term store of value, and it certainly deserves a place in every investor’s portfolio.
Ultimately, it’s up to each investor to choose between Bitcoin or Dogecoin based on their investment goals. If you’re seeking a long-term investment, Bitcoin is the best choice without a doubt. However, Dogecoin may be right for you if you’re after a short-term speculative investment. But you don’t have to choose between the two, as you could opt for a diversified portfolio that includes both DOGE and BTC. If you’re a risk-averse investor, you can add smaller DOGE positions to your portfolio and capitalize on potential price increases while also safeguarding yourself against declines in case the popularity of the meme coin ends up fading in time. Overall, it’s important to remember that the crypto universe is filled with uncertainty and risks, and spreading your investment across different assets is what will keep you safe.
The bottom line
Ultimately, it’s important to remember that Bitcoin is the 1st biggest cryptocurrency in the world, and there’s a good reason for that. It is unlikely that other cryptocurrencies will ever take their place, although there is a good chance that they will see bigger gains. Dogecoin is indeed shining bright these days, and it could be a good option for those looking for community-driven fun and short-term trending opportunities. As always, your choice of whether to invest in a crypto or not should reflect your risk tolerance, investment goals, and the purpose of buying the cryptocurrency.
