You may have seen news that the price of Dogecoin is rising again lately. Even those not interested in cryptocurrencies have probably heard the terms 'Dogecoin', 'Shiba Inu Coin', and 'Meme Coin' at least once.
As the name implies, Meme Coin is a coin that originated from internet memes. Since it is based on famous internet pictures or characters, it moves based on 'fun' and 'issues' rather than technical purposes.
The representative of this is Dogecoin. This coin, with the funny face of a Shiba Inu as its mascot, was created in 2013 as a joke but has since grown into a virtual asset that ranks within the top 10 by market capitalization.
Why is Dogecoin rising again?
As of May 2025, Dogecoin is trading at around $0.23 (approximately 310 won) and has risen by more than 40% over the past month. There are several reasons behind this.
The first rumor is that Dogecoin could be used in the X (formerly Twitter) payment system, and Musk's mention of Dogecoin as 'internet currency' has piqued investors' interest again.
Secondly, as new meme coins emerge, the overall 'meme coin theme' is attracting market attention.
And due to the large price fluctuations of meme coins, a lot of investors are flocking to short-term trading.
Due to this atmosphere, some experts predict that it could rise to $0.30 in the short term, but the long-term narrative is different.
What are the structural risks of Dogecoin, and why should we be cautious?
Dogecoin has several clear weaknesses compared to other virtual assets.
The fact is that there are almost no real use cases. Bitcoin serves as digital gold, Ethereum is a smart contract platform, but Dogecoin still lacks a distinct use case.
Additionally, the unlimited issuance structure means that Dogecoin is issued over 5 billion additional coins each year. This means that, like the currency of a country where inflation continues, its scarcity may decrease over time, leading to a drop in value.
Lastly, due to its speculative nature, it often experiences significant fluctuations based on the power of the community or a single word from a specific person (e.g., Musk). Many investors who bought Dogecoin at its peak in 2021 are still at a loss.
Going all-in on altcoins is a very dangerous idea. Many investors go all-in in hopes of 'Dogecoin will rise again!' But this is an extremely risky strategy.
Most altcoins lack technical foundations or real usability, and over 80% of projects fail or disappear within a few years. Investing primarily in altcoins is akin to gambling.
Beginner investors often miss the timing to cut losses because they focus only on these 'popular coins' and end up suffering significant losses.
In such a volatile market, repeatedly buying and selling emotionally can lead to significant mistakes. Therefore, many people nowadays are using the Bitcoin automatic trading system.
By utilizing functions such as automatically buying when a specific price is reached, automatically selling when profit targets are achieved, and splitting purchases at a certain ratio during a downturn, it becomes a strategy that allows for stable investment without being swayed by human psychology.
We have examined whether the price of Dogecoin will continue to rise. Dogecoin undoubtedly has an interesting story, but the investment risks are equally significant.
Remember that it is an asset that reacts sensitively to short-term issues, making it closer to trading than long-term investing.
If you are just starting to invest in virtual assets or want to reduce risk, how about considering a diversified investment centered on Bitcoin along with an automatic trading system?
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Today, we looked into Dogecoin in this way. I would recommend investing while receiving the benefits of fee discounts.