Part of the appeal of meme coins is that they're usually extremely cheap. Dogecoin (DOGE 2.12%), the largest meme coin by market cap, costs just $0.09 at the time of this writing.
People who buy meme coins sometimes imagine how much their crypto will be worth if the price hits a certain target -- like $1, in Dogecoin's case. But is that even possible?
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It could theoretically happen, but the odds are extremely slim. Dogecoin's all-time high was $0.74, reached on May 8, 2021. That was the same day Tesla CEO Elon Musk, who had shown interest in Dogecoin and discussed it on social media, appeared on Saturday Night Live.
This setup was essentially a scenario where the stars aligned for Dogecoin. Investors were excited because Musk seemed to like it, and he was making a high-profile TV appearance. Meme coins were also still a fresher, more novel concept at the time.
Dogecoin got a lot of attention because it was interesting and unique, not just one of thousands of meme coins serving no real purpose, as it is now. Everything went right for a while, and Dogecoin still ended its brief run well short of $1.
CRYPTO: DOGE
Key Data Points
Dogecoin is quite the story. It's a satirical cryptocurrency that skyrocketed by over 27,000% in six months and is still worth over $15 billion. But its success has been driven entirely by hype, not fundamental value, so it's not a good choice for a long-term cryptocurrency investment.
