Can Dogecoin and GameStop Deliver Long-Term Value to Investors?

Dogecoin (DOGE) and GameStop (GME) garnered significant attention from the retail investors community in 2021. While one is a cryptocurrency and the other a traditional stock, both share the common thread of being dubbed meme investments due to the significant role social media and online communities played in their price surges. Here, we explore the past performance and potential future of two assets.

A Look Back at 2021

Both DOGE and GME experienced dramatic rises in 2021. Dogecoin’s price climbed sharply, which was mainly driven by tweets from Tesla CEO Elon Musk and its status as a viral social media sensation. The price rose from less than $0.05 in February 2021 to an all-time high of nearly $0.75 in April 2021, representing a massive gain of 1,400%.

GameStop’s price increase was equally dramatic, which was driven by a coordinated buying frenzy from the Reddit community, particularly the forum r/WallStreetBets. The stock price went from under $20 at the start of 2021 to a peak of nearly $500 on Jan 28, 2021. This marks a phenomenal increase of over 2,700% in less than a month. These price movements attracted widespread media attention and fueled discussions about the influence of retail investors on the financial markets.

The Price Decline and More- A Reality Check

The significant price hikes seen in early 2021 were not sustainable. Both DOGE and GME have since seen a decline from their peaks. However, it is important to note that they have not returned to their pre-2021 levels either. As of May 15, 2024, Dogecoin sits at $0.15, which is still considerably higher than its price two years ago ($0.09). Similarly, GameStop’s current price of $30 is well above its May 2022 price of $25.

Interestingly, both assets have shown continued investor interest despite the decline from their all-time highs. In fact, a hypothetical $1,000 investment in each of DOGE and GME two years ago would have yielded a total of $2,860 today, which represents a return of over 180%. This exceeds the gains of the S&P 500, a benchmark index for the US stock market, which grew by just over 30% in the same period.

A Revival of Interest- The Case of GameStop

The recent hike in GameStop’s price in May 2024 is a noteworthy development. The price increase followed a return to social media by the online personality Roaring Kitty, who played a key role in attracting attention to GME in 2020 and 2021. This suggests that social media can regenerate interest in meme stocks and may lead to renewed price volatility.

The Future of Meme Coins and Stocks

The future path of DOGE and GME remains uncertain. However, some analysts believe that Dogecoin, being the most popular meme coin among retail investors, could benefit from the renewed interest in GameStop. The logic is that investors in search of meme-based opportunities might turn to DOGE due to its past association with similar price movements.

Additionally, Dogecoin’s technical indicators suggest a strong potential for growth. An increase in large transaction volume and daily active addresses suggests a rise in investor activity. Whether this results in a significant price increase remains to be seen.

Summary of Dogecoin (DOGE) and GameStop (GME) Performance

Asset Price in May 2022 Price in May 2024 Return on a $1,000 Investment (2 Years)
Dogecoin (DOGE) $0.09 $0.15 $1,660
GameStop (GME) $25 $30 $1,200


Final Thoughts

Overall, the case of DOGE and GME is an interesting example of how social media and online communities can influence investment trends. While the future performance of these assets is uncertain, their past performance indicates the possibility for rapid price movements and the importance of careful consideration before investing.

Jimi Pen

Jimi pen is a freelance journalist and Cryptocurrency expert who has completed her education from Vanier College, Quebec. She is originally from Switzerland and loves to travel in her free time. She has been associated with the cryptocurrency market since 4 years.

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