Dogecoin (CRYPTO: DOGE) - a cryptocurrency that originated from a joke in 2013 - has had a tumultuous journey. From an initial price of about $0.0002, Dogecoin reached a historical peak of $0.74 in May 2021 before correcting to around $0.21 currently.

An investment of just $100 at the start had at one point skyrocketed to $370,000 and now remains at around $100,000 - an extraordinary profit. However, in the current context, achieving a 1,000-fold increase as before may be very difficult to replicate. Nevertheless, it is entirely feasible for Dogecoin to double to $0.40 in the next 12 months, thanks to the 5 reasons below:

1. Spot price trading ETF proposals for Dogecoin

Many large companies in the cryptocurrency sector, such as Grayscale, Bitwise, and 21Shares, have filed applications with the U.S. Securities and Exchange Commission (SEC) for permission to establish ETFs tracking the price of Dogecoin.

If approved, these ETFs will expand access to Dogecoin for both institutional and individual investors, while enhancing Dogecoin's position alongside giants like Bitcoin and Ethereum - two coins that had ETFs approved last year.

2. Cryptocurrency-friendly policies of the Trump administration

The Trump administration is actively promoting the development of the cryptocurrency market with initiatives such as the Strategic Bitcoin Reserve and the National Digital Asset Vault. Additionally, the appointment of Paul Atkins, a strong proponent of the crypto industry, as SEC chairman could pave the way for the approval of Dogecoin ETFs.

At the same time, President Trump is also pressuring the Federal Reserve (Fed) to cut interest rates to stimulate the economy. If this happens, capital may flow into higher-risk assets like Dogecoin.

3. Support from social media and celebrities

Dogecoin was once heavily 'pumped' thanks to posts from stars like Elon Musk, Mark Cuban, and Snoop Dogg. Elon Musk not only tweeted a lot about Dogecoin but also allowed Tesla to accept payments in this coin for some products since late 2021. Recently, the social media platform X (formerly Twitter) has also integrated payments using Dogecoin.

The fact that Elon Musk once led an agency called the Department of Government Efficiency (DOGE) under the Trump administration further adds to the coin's 'viral' nature.

The Dogecoin community on social media is very large with:

  • 2.7 million members on the Dogecoin subreddit,

  • 11.2 billion views on TikTok.

This creates a strong FOMO effect every time there is positive news.

4. The expansion of the development ecosystem

Dogecoin is mined using a proof-of-work mechanism similar to Bitcoin, but it does not have a supply limit - there are currently nearly 150 billion coins in circulation, making this coin inflationary.

In addition, Dogecoin currently does not support smart contracts - which prevents it from becoming a platform for decentralized applications (dApps) like Ethereum or Solana. However, this may change as Dogecoin is developing an official Layer 2 on the Polygon network, allowing dApps and digital assets to connect with Dogecoin.

The expansion of the development ecosystem will increase the practical use value of Dogecoin, no longer just a 'fun' coin.

5. Whales are quietly accumulating Dogecoin

While many retail investors have exited Dogecoin, some 'whales' (large anonymous investors) have quietly accumulated DOGE over the past year. This is a sign of long-term confidence in Dogecoin's recovery potential.

The combination of ETFs, low interest rates, support from Elon Musk, and ecosystem expansion could be the catalysts for Dogecoin's resurgence. Notably, Dogecoin once reached $0.48 in December 2024, so returning to the $0.40 mark is entirely within reach if there is a positive wave.

In conclusion

Dogecoin cannot yet be considered a safe long-term investment, but with the current supporting factors, doubling in value to $0.40 in the next 12 months is entirely possible. With a combination of policy, media, and technology development, Dogecoin is gradually shedding the label of 'meme coin' to enter the more serious playing field of the digital asset market.