Prediction: Dogecoin Will Be Worth This Much by Year-End 2026

After beginning 2025 on a sizzling note, the price of fan-favorite crypto Dogecoin (CRYPTO: DOGE) completely cratered after a huge sell-off in the first quarter last year. All told, Dogecoin lost roughly 60% of its value last year.

The question some investors may be asking now is whether a bounce back could be in store given Dogecoin's prolonged sell-off.

Let's dive into why the cryptocurrency market could rally in 2026. From there, I'll outline where I think meaningful capital will flow and assess whether Dogecoin could be back on the upswing.

Image source: Getty Images.

Will there be a crypto rally in 2026?

While many economists are projecting another strong year for equities, I think the cryptocurrency market could also be on the rise in 2026.

The first potential catalyst for a crypto rebound could be dictated by the Federal Reserve's actions. Should the Fed continue to lower interest rates, investors theoretically will have more discretionary income.

When investors are not spending as much of their money to pay down debt, they may be more inclined to reinvest their savings. While that's good news for stocks, it can also be good news for more speculative investments such as cryptocurrency.

Another tailwind for crypto this year could be the current state of global affairs. Right now, geopolitical tensions are present in Europe, the Middle East, and South America. Moreover, President Donald Trump's tariff situation remains fluid, particularly as it relates to trade policy with major partners like China.

When the macroeconomic picture becomes overwhelmingly murky, investors tend to shift capital away from stocks and migrate toward alternative assets -- gold, silver, real estate, and in recent years, cryptocurrency.

Watch where capital inflows are going

Cryptocurrency is a much more volatile and unpredictable asset class compared to stocks or bonds. For this reason, it's a good idea to take note of which coins have the most demand relative to their peers.

During the past couple of years, both retail and large institutional investors have taken a liking to regulated products -- notably, spot Bitcoin exchange-traded funds (ETFs). Although Bitcoin remains the most mainstream cryptocurrency, meaningful capital is also being allocated toward blue chip opportunities such as Ethereum as well as established altcoins like XRP and Solana.

By contrast, enthusiasm for Dogecoin appears to be diminishing. This is likely due to the fact that Dogecoin is a meme coin and has little-to-no utility in the real world.

With a niche developer community and limited applications in the world of decentralized finance (DeFi), Dogecoin lacks a compelling value proposition for investors seeking durable growth.

Dogecoin could plummet by year end

The chart below illustrates Dogecoin's price fluctuations during the past five years. Looking at the long-term trends, there is an argument to be made that the token's current price of about $0.15 represents a floor price. What I mean by that is the price of Dogecoin often surges after bottoming in the range of $0.10 to $0.15.

Dogecoin Price data by YCharts.

The nuance here is that Dogecoin's rallies are fleeting. The coin has never been able to maintain meaningful price appreciation. So while a price increase could be in store in the near term, history indicates that Dogecoin will plunge right back to its floor.

With interest in legitimate cryptocurrencies on the rise, in combination with Dogecoin's lack of sustainable price appreciation, I think more investors will continue moving away from the coin's unpredictable patterns and deploy capital into more established investments. By the end of 2026, I think Dogecoin will be trading at a much lower price than today.

Adam Spatacco has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.