Dogecoin, which started as a joke, has long been the undisputed king of meme coins and has garnered a huge following since its creation. In a recent analysis shared on the social media platform X, crypto analyst Master Kenobi presented a compelling case for Dogecoin as a superior cryptocurrency compared to Bitcoin. 

Exceptional Historical Performance Compared To Bitcoin

Bitcoin, the world’s largest crypto asset, has outperformed every other asset in traditional finance in the last decade since its creation. However, as Master Kenobi pointed out, Dogecoin has indeed outperformed Bitcoin since its launch date. 

Master Kenobi noted that since its inception on December 8, 2013, Dogecoin has experienced a remarkable growth of approximately 883,920% up to its all-time high. In contrast, Bitcoin’s growth during the same period stands at about 17,234%. This significant outperformance underscores Dogecoin’s potential as a high-yield investment.

Unlike Bitcoin’s capped supply, DOGE employs a fixed inflation model, introducing around 5 billion new coins annually. Some might see this inflationary trend as negative for Dogecoin, but proponents of the meme coin have always emphasized that it is a needed feature. According to Kenobi, with DOGE’s total circulating supply currently above 140 billion DOGE, the annual issuance is now mostly negligible, and its effect will continue to decrease with time. Furthermore, the Dogecoin adoption rate has even far outpaced its inflation rate.

Lastly, the analyst highlighted the current low price of Dogecoin as one of its biggest advantages it has over Bitcoin. The relatively low price per DOGE unit makes it attractive to retail investors, who can acquire thousands of DOGE for the cost of a fraction of a Bitcoin. Bitcoin, on the other hand, is now being perceived more as an instrument for institutional investors due to its currently high price.

This affordability, combined with Dogecoin’s strong community and meme culture, makes it more appealing as an accessible cryptocurrency.

Current State Of Dogecoin

At the time of writing, Dogecoin is trading at approximately $0.38, with a 24-hour trading volume of $10.56 billion and a market capitalization of $55.8 billion. DOGE, which recently traded at $0.42 for the first time in two years, now finds its price correcting since October 13, having reached a low of $0.356 in the past 24 hours. 

Nonetheless, Dogecoin has maintained gains over both seven-day and 30-day periods, indicating a bullish trend. As such, the meme coin is definitely on track to end the month at a bullish close. There is also the possibility of reaching a new all-time high above $0.73 before the end of 2024. This optimism is partly fueled by the recent US presidential election, where President-elect Donald Trump has expressed a favorable stance toward cryptocurrencies.

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In 2024, new spot crypto ETFs officially launched, Bitcoin (BTC 1.12%) emerged as a political campaign issue for the first time, and meme coin mania returned to the crypto market. All of that has led to stunning gains for nearly every major cryptocurrency. Bitcoin, for example, is now up more than 100% for the year, and is rapidly closing in on the $100,000 price level.

So what can we expect in 2025? The safe answer, of course, is “more of the same.” But let’s dig a little deeper and consider what major changes might be right around the corner.

A new regulatory environment for crypto

Ever since the crypto market crash of 2022 and the spectacular collapse of cryptocurrency exchange FTX, there has been talk of the U.S. enacting a comprehensive new regulatory framework for crypto. Something has to be done, the thinking goes, to make the crypto market less of a “Wild West” environment. Unfortunately, not much has actually been done over the past two years.

So, 2025 could be the year that crypto finally gets a new regulatory framework. That likely starts with a reduction in the role of the SEC, which has been the de facto lead regulator when it comes to crypto. President-elect Donald Trump has already promised that he would replace Gary Gensler, the head of the Securities and Exchange Commission (SEC), on day one of his administration. That’s a move that will certainly resonate with crypto investors, who are tired of the SEC’s perceived heavy-handed approach to regulating crypto.

If new crypto legislation passes in Congress, it would likely lead to the installation of the Commodity Futures Trading Commission (CFTC) — and not the SEC — as the new lead regulator for crypto. This legislation would also lead to much more clarity around what can be done, and what can’t be done, in the world of crypto investments. And it could even lead to a repeal of SAB 121, a much-disliked accounting rule from the SEC that governs how cryptocurrencies must be held on the balance sheets of financial institutions.

A crypto “arms race” by sovereign governments

In the final months of the presidential campaign, there was a surprising amount of talk of how crypto is emerging as a new national strategic priority. In fact, some crypto backers have even suggested that we might see a Bitcoin “arms race,” as sovereign governments around the world go on Bitcoin buying sprees.

In the U.S., this buying spree would likely start with the creation of a strategic Bitcoin reserve that will be empowered to buy 1 million Bitcoins over the next five years. Conceptually, a strategic Bitcoin reserve would be much like the Strategic Petroleum Reserve, only it would hold Bitcoin instead of petroleum. Owning 1 million Bitcoins, equivalent to 5% of the current circulating supply, would make America a “Bitcoin superpower,” as Trump promised on the campaign trail.

Other nations would likely need to follow suit. And that has raised the interesting possibility that China might be forced to roll back its crypto ban, which has been in place since late 2021. If China goes all-in on Bitcoin, and starts to accumulate Bitcoin the way it has been growing gold reserves, we could see a monster incoming Bitcoin rally.

And don’t forget about the world’s biggest sovereign wealth funds. They are also potential huge Bitcoin buyers, and there have been on-again, off-again, rumors that affluent nations such as the UAE, Saudi Arabia, Kuwait, and Qatar have been very quietly buying Bitcoin for their sovereign wealth funds. BlackRock, the world’s largest asset manager, has already suggested that sovereign wealth funds might become some of the biggest buyers of the new spot Bitcoin ETFs (including its own spot Bitcoin ETF).

The arrival of a new cryptocurrency superstar?

If you buy into the idea of an incoming crypto market bull rally, then it makes sense that we could see the emergence of a new crypto superstar in 2025. That’s what happened during the crypto bull market rally of 2020 and 2021, when the emergence of decentralized finance (DeFi) and non-fungible tokens (NFTs) created hot new crypto tokens. The previous rally also led to the rise of new Layer 1 blockchain networks such as Solana.

So what can we expect this time around? It’s impossible to predict which new coins or tokens will take off, but there are some interesting clues out there. There are new opportunities in Bitcoin mining, for example, thanks to Trump’s campaign promise to mine all future Bitcoin in America.

Keep your expectations in check

Heading into 2025, it’s easy to see why there’s such bullish sentiment in the crypto market right now. All of a sudden, it seems like anything is possible. Thanks to Elon Musk and the creation of the Department of Government Efficiency (D.O.G.E.), we’re now talking about Dogecoin in the same sentence as government efficiency. It’s fun, but it’s also scary.

So keep your expectations in check. There’s still a lot of heavy lifting to do on the regulatory front. And the creation of a strategic Bitcoin reserve is an idea so new and so untested that it might not ever get off the ground. But one thing is certain: There will be plenty of opportunity for cryptocurrencies such as Bitcoin to skyrocket in value next year, as long as new pro-crypto policies are put into place.