Dogecoin on the rise: whales are buying and predicting $1 by 2025

Dogecoin on the rise: whales are buying and predicting $1 by 2025

Dogecoin, the well-known memecoin, has experienced a significant 21% increase over the past week, outperforming competitors such as Shiba Inu, Pepe and Bonk. Its price is currently around $0.38, with some analysis predicting it could reach as high as $1 by 2025.

This rise in price is linked to renewed interest in whales, which have recently amassed more than 1 billion DOGE, equivalent to about $413 million. For example, on January 3, there was a massive transfer of 399.9 million DOGE from the Binance exchange to an unknown wallet, a signal to investors that selling pressure is easing and the coins are becoming more unavailable on the market.

Historical data shows that January has long been the most successful month for Dogecoin, with an average return of 85%. In the past, DOGE has seen increases as high as 711% in this month in 2021 and 269% in 2014. The second most successful month was April, which also boasts strong returns.

Galaxy Digital's prediction: DOGE at $1

Analysts at Galaxy Digital, led by Alex Thorne, predict that Dogecoin could grow 170% by 2025, reaching a value of $1 and a market capitalization of $100 billion. Thorn said, "Dogecoin will finally reach $1, while its market capitalization will increase to $100 billion." However, he warned that the Department of Government Efficiency could have a larger market value than DOGE.

The recent surge of interest in DOGE is also related to the announcement of a new government agency called the Department of Government Efficiency (DOGE), led by Elon Musk and Vivek Ramaswamy. This news has boosted investor confidence, which has been reflected in a more than 50% increase in open interest in DOGE over the past few days.

New investment strategies with DOGE

Investment company Spirit Blockchain Capital has announced plans to use its Dogecoin reserves to generate revenue. The move is inspired by MicroStrategy's strategy of using its bitcoin reserves to generate additional revenue. Spirit Blockchain intends to deploy its DOGE into decentralized financial protocols and offer revenue-based products to both institutional and retail investors.

With growing interest in Dogecoin and positive predictions for its future, DOGE appears to remain a strong player in the cryptocurrency market. What are the next developments? That remains to be seen.

*This is not an investment recommendation.

Coingarage team