# DOGE has fallen 52% this year, can we still buy the dip? One fact that will change your perspective.

The story of Dogecoin is a bit ironic—created as a joke by two guys in 2013, it surged to $0.73 in 2021, with a market cap of $9 billion. And now? After a 252% increase in 2024, it has fallen to -52% this year, it feels like a roller coaster.

The key question arises: is this a bottom opportunity or the beginning of a continuous fall?

**Question 1: No real use**

DOGE lacks one fatal thing - real use cases. XRP can serve as a bridge for cross-border payments, ETH runs smart contracts, what about DOGE? Only 2,126 merchants accept it. No one actually uses DOGE to buy things because of its volatility. The past few rounds of gains have all relied on speculation: in 2021, Musk recommended it on SNL, driving it to a high point, and in 2024, it saw another wave due to the "DOGE" agency department meme, but once the hype fades, the funds pull out.

**Question 2: Infinite Supply Inflation**

This is even more heartbreaking - DOGE now has 151.8 billion coins in circulation, with no cap. New coins are constantly entering the market through mining, endlessly.

Compared to Bitcoin: a hard cap of 21 million coins, scarcity supports the price. The supply of DOGE will eventually double to 30.3 billion coins, and even if the market value doubles, the price per coin will remain stagnant. This is a vicious cycle.

**Data Reality**

Current price $0.16, market cap 24.5 billion USD. The last crash bottomed out at $0.05 at the end of 2022. According to the current decline, if it breaks again, it could drop to $0.05, indicating a further 68% downside potential.

**Conclusion**: This year's 51% fall is not a bottom signal, but rather a precursor to more selling pressure. There is no fundamental support, no scarcity, only speculative enthusiasm - this combination does not warrant buying the dip.