Looking back at the end of 2024, the crypto market experienced an unexpected frenzy. The Federal Reserve's interest rate cuts and Trump's election victory both came to fruition, quickly igniting market sentiment. Especially when Musk and Trump frequently echoed each other on social media, the price of Dogecoin soared, jumping from $0.10 to $0.48 in just a few weeks, an increase of nearly 400%.
However, at that time, calm voices had already pointed out: assets that rely on celebrity endorsements often come with significant volatility. The price then corrected to $0.41, once again confirming the instability of the speculative market.
In fact, Dogecoin has carried a strong sense of irony since its inception in 2013—stemming from two engineers mocking the speculative atmosphere of the cryptocurrency market, and using a Shiba Inu as its mascot. Its founders have repeatedly emphasized that they never assigned it any serious mission. Even when it reached a market value of $87 billion in 2021 due to Elon Musk's influence, it still lacked core technological support and practical application scenarios, resembling more of a group psychology experiment.
What is even more concerning is that Dogecoin has a fixed annual issuance of 5 billion coins, and this unlimited supply mechanism continually exerts potential pressure on its price. Coupled with the fact that its price is easily influenced by social media commentary, it has thus always been regarded as a high-risk speculative asset.
To some extent, this wave of Dogecoin market activity at the end of 2024 seems like the last collective revelry before the transition of crypto assets from 'narrative-driven' to 'value-supported.' The era where funds could be attracted by a white paper and a few celebrity endorsements is coming to an end.
The current blockchain field has quietly entered a pragmatic stage. For example, the 'Chang'an Chain' independently developed in Beijing has achieved comprehensive localization in scenarios such as government data sharing and supply chain finance; the 'Spark·Chain Network' main node deployed in the Yangtze River Delta is deeply supporting the construction of the industrial internet and digital economy. These projects are not flamboyant, but they are solidly advancing technological integration and trust mechanism reconstruction, which is the true direction for unleashing the potential of blockchain.
As we enter 2025, the market needs to be most wary of FOMO sentiment—fear of missing out that could lead to greater mistakes. Blindly entering Dogecoin due to chasing historical gains may cause one to miss out on truly valuable potential projects that have yet to be widely recognized.
In recent years, a number of projects that continue to innovate in key areas such as distributed storage, privacy computing, and cross-chain protocols have been undervalued due to market recognition lag. They do not rely on hype, but rather on code and ecosystem advancement, making them more likely to become the pillars of the next phase of industry development.
As Musk has also reminded: investment requires caution, and do not let a moment of revelry become a lesson learned at a cost.
