“No utility and unlimited supply”... Will Dogecoin ultimately converge to zero?
“No utility and unlimited supply”... Will Dogecoin ultimately converge to zero?
Dogecoin (DOGE), which has dazzled investors with an astonishing return of approximately 40,000% over the past decade, has been harshly criticized as having effectively degenerated into a speculative playground and labeled an asset that should “never be touched.” Analysts note that at its current level—down 86% from its peak—three fatal weaknesses are pushing investors to the brink: the lack of utility, extreme price volatility, and an unlimited supply.
According to investment-focused outlet The Motley Fool on February 8 (local time), Dogecoin is not built on Ethereum, lacks smart contract functionality, and is incompatible with the decentralized application (dApp) ecosystem, leaving it with virtually no practical use. Its function as a currency is also markedly inferior to that of Bitcoin (BTC). Bitcoin’s market capitalization stands at $1.6 trillion, about 90 times that of Dogecoin, and fintech firm Block has reinforced Bitcoin’s position as a payment method by introducing BTC payments at Square merchants. Dogecoin, by contrast, has been completely edged out of this competition.
Dogecoin’s price is driven not by fundamentals but by external factors such as remarks from high-profile figures like Elon Musk or Mark Cuban, or specific government initiatives—making it a textbook example of a “hype-driven” asset. This volatility makes it closer to gambling than investing, with repeated patterns of sharp short-term surges followed by steep drops that make it extremely difficult for retail investors to generate consistent profits.
An even more serious issue is the absence of a cap on supply. Dogecoin generates 10,000 new coins every minute, or about 5 billion coins annually, indefinitely. Unlike Bitcoin, whose core value lies in scarcity, this structure inherently suppresses price appreciation. With the current total supply reaching 169 billion coins, the constant influx of new tokens is an unavoidable, permanent obstacle to long-term price growth.
Ultimately, the triple burden of insufficient utility, speculative nature, and unlimited supply casts a dark shadow over Dogecoin’s future. The outlet strongly warned that Dogecoin has already passed its prime and that prudent investors should not be seduced by such meme coins but instead avoid them altogether.
*Disclaimer: This article is for investment reference only, and no responsibility is taken for any investment losses based on its content. The information provided should be interpreted solely for informational purposes.*
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