Dogecoin opened this month with major gains. While the entire recorded significant gains last week, Dogecoin was among the top gainers after Elon Musk made some favorable comments about it. However, this momentum seems to be wearing off as Dogecoin (DOGE) has dumped for the second day in a row. At the time of writing, it is down by 11%. With such a heavy dump, it is only natural to wonder, is Dogecoin (DOGE) a worthy investment? Well, the answer is yes! Dogecoin has what it takes to record extraordinary gains going into the future, and its short-term price fluctuations are just that, short-term.
It is important to understand that the current Dogecoin (DOGE) dump was inevitable. After its massive gains following Elon Musk’s comments, investors were bound to take profits. It happens with all other assets. Once the profit-taking phase is over, prices will stabilize and start rising again. It’s a normal short-term cycle in any asset. As such, this dump is simply an opportunity to accumulate some more. There are many fundamentals supporting Dogecoin’s rise way beyond these short term price movements.
One of the most important ones is its utility in payments. Dogecoin (DOGE) is fast, low cost, and cannot be censored. This gives it a real chance at competing with centralized payment systems such as PayPal. In fact, there is a good chance that Dogecoin (DOGE) could even replace credit cards. The reason it can achieve this is its censorship resistance. Unlike centralized payment systems were transactions can be censored, you have total control over all payments that you make with Dogecoin (DOGE). This is big and will see the value of Dogecoin rise over time in the payments space.
Besides, speed and censorship resistance, Dogecoin (DOGE) will rise in the payments space due to its stability. In spite of its latest price action, Dogecoin (DOGE) is one of the most stable cryptos in the market. It is this stability that will drive up its adoption going into the future. That’s because it is lack of stability that has held back cryptocurrency adoption up to this point. No merchant wants crypto that can lose over 30% of its value in a day. While Dogecoin (DOGE) behaves this way at times, most of the times it exhibits a high degree of stability relative to the rest of the market.
On top of that, Dogecoin (DOGE) has some amazing products being built around it. One of them is the Doge racer game. As this game and many others like it emerge, the value of this crypto could rise significantly in the future.
With all these factors, there is no doubt that Dogecoin (DOGE) is a crypto worth holding for the long haul. Things will be even better for Dogecoin (DOGE) once institutional money flows into this market and creates retail FOMO in crypto. Doge will be one of the cryptos that record the most gains due to superior fundamentals. The future is great for Dogecoin (DOGE) in a changing payments landscape.