Dogecoin (CRYPTO: DOGE) has often been a trending topic on Google and social media ever since 2021.
The cryptocurrency hit all-time highs throughout the year and provided huge returns for investors who got in years prior or bought a position to start the year.
Here’s a look back and how much an investment from the key date would be worth now.
What Happened: Dogecoin became a huge storyline in 2021 with public figures like Elon Musk and Mark Cuban generating support and posting positive thoughts about the crypto on social media.
Companies use Dogecoin in marketing and for social media reach, along with some companies accepting the cryptocurrency as a form of payment.
The strength of Dogecoin and the trends on social media led to more cryptocurrency and stock exchanges offering investors ways to invest in Dogecoin.
“Many times, a new exchange adding Dogecoin or announcing it was going to lead to another price spike for Dogecoin along with multiple spikes any time Musk mentioned the coin,” said Benzinga.
Dogecoin hit an all-time high of $0.7375 in May 2021, which came around the time Musk was the featured guest host of an episode of “Saturday Night Live.” Investors who bought into Dogecoin shortly before the episode aired or in the latter part of 2022 may be down on their current position.
“The year 2022 saw Dogecoin drop as a trend and in social media mentions in the midst of a cryptocurrency bear market, which was accelerated by the bankruptcies of several cryptocurrency platforms like FTX,” said Benzinga.
In 2022, Dogecoin traded in a range of $0.04972 to $0.2032, with several spikes in the crypto-related to the planned purchase of Twitter by Musk and the close of the deal in October.
Here’s a look at how investors who got in early, back at the start of 2021 when Dogecoin was a major trending topic, have fared.
Investing $1,000 in Dogecoin: Investors who saw Dogecoin trending on social media as the new year kicked off and placed a small bet on the cryptocurrency continuing its momentum would have been pleasantly rewarded.
Dogecoin opened for trading on Jan. 1, 2021, at $0.00468 and hit a high of $0.005685 on that day. A $1,000 investment at the time could have purchased 175,901.50 DOGE based on the highest price that day.
The $1,000 investment in Dogecoin would be worth $10,638.52 today, based on a price of $0.06048 for Dogecoin at the time of writing. This represents a hypothetical return of 963.9% over the last two years and two months.
At its peak price of $0.7376, the $1,000 investment in Dogecoin would have been worth $129,744.95.
Whether an investor sold during the run-up to all-time highs or is currently holding, if they bought Dogecoin in early 2021, they are likely saying “Much Wow.”
For comparison, the same $1,000 invested in the SPDR S&P 500 ETF Trust (NYSE: SPY) or a top stock like Apple Inc (NASDAQ: AAPL) or Tesla Inc (NASDAQ: TSLA) would not have generated the same returns.
Here’s a look at the performance of those three assets over the same time period, using a starting point of Dec. 31, 2020, due to the market being closed on Jan. 1, 2021.
SPDR S&P 500 ETF Trust: +13.0%
Apple: +27.8%
Tesla:+0.5%
Produced in association with Benzinga
Edited by Priscilla Jepchumba and Newsdesk Manager
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