The Meme Coin With the Best Shot at Surviving Long Term

Five years ago, there were approximately 125 meme coins in circulation. Today, there are literally hundreds of thousands of different meme coins, making it statistically improbable that any of them will ever pull away from the pack.

But if there's one meme coin capable of surviving long term, it's Dogecoin (CRYPTO: DOGE). It's been around for more than a decade now.

Here are two good reasons why it might hang around for the next decade as well.

1. New Dogecoin ETFs

Since its launch, Dogecoin has consistently attracted retail investor support. What it has now is growing support from institutional investors, who increasingly see it as a way to diversify an overall crypto portfolio. After all, with a market cap of approximately $17.5 billion, Dogecoin still ranks among the top 10 cryptocurrencies in the world.

Image source: Getty Images.

Over the past nine months, three different spot Dogecoin ETFs have launched. The first was the REX-Osprey Dogecoin ETF (NYSEMKT: DOJE) in September. That was followed by the launch of new ETFs from Grayscale and 21Shares.

Of course, these ETFs may eventually fizzle out and struggle to attract capital if Dogecoin continues to underperform the broader market. But they do suggest that Dogecoin may be able to differentiate itself from meme coin rivals simply because of the number of investment products available to rank-and-file investors.

2. The Elon Musk factor

The other catalyst, for lack of a better term, is the "Elon Musk factor." The tech billionaire has been a longtime backer of Dogecoin. In addition to posting about Dogecoin on social media, Musk famously appeared as "The Dogefather" in a skit on NBC's Saturday Night Live. And, last year, he created an entirely new government entity: the Department of Government Efficiency, better known as DOGE.

Musk has also used his corporate holdings to boost Dogecoin's prospects. For example, Tesla currently accepts Dogecoin for some merchandise. The social media platform X (formerly Twitter) has been attempting to integrate Dogecoin as a potential crypto payment option. And SpaceX -- currently on pace to become the biggest IPO ever -- could help to make Dogecoin the first intergalactic cryptocurrency. What other cryptocurrency can claim that type of buy-in from a tech billionaire?

Ultimately, it doesn't matter if any of these ideas actually come to fruition. It's the hype and buzz that matters. After all, Dogecoin is just a meme coin. That's how meme coins survive over the long haul: They continually find new ways to reinvent themselves for the cultural zeitgeist.

Should you buy Dogecoin?

While Dogecoin is likely to persevere for the long haul, that does not necessarily imply that its price will ever recover substantially. Right now, Dogecoin is trading at a remarkable 86% discount to its all-time high of $0.74. It may not go to zero, but it's getting uncomfortably close -- and that's despite running every single play out of Elon Musk's meme coin playbook.

For that reason, I'm out on Dogecoin right now. If you're looking for a cryptocurrency to buy and hold for the long haul, a better option is Bitcoin (CRYPTO: BTC).

Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Tesla. The Motley Fool has a disclosure policy.