This year has been wonderful for digital-asset investors. The entire cryptocurrency market has soared more than 40% in value since the start of 2024 (as of July 23). That tremendous gain not only makes it easy to forget the 2022 crypto winter, but it also represents a better performance than the Nasdaq Composite index.

During the ongoing bull run, investors might have their sights on speculative tokens. Perhaps Dogecoin (CRYPTO: DOGE), which is up 53% this year, is back on your radar as a place to park capital.

Should you buy this meme cryptocurrency right now with $100 and hold it through 2024 and beyond? Here's some important info to help guide your decision-making.

Dogecoin was one of the first cryptocurrencies

Having launched in 2013, Dogecoin is one of the oldest blockchain networks out there. Despite its extremely volatile journey, it's currently the eighth-most-valuable crypto in the world, with a market cap of $19 billion. This helps keep it in the spotlight.

It's crazy to think that something so valuable has come about from what was originally meant to be a joke by Dogecoin's two founders. The goal was to create a cryptocurrency that was a fun alternative to Bitcoin at the time. Dogecoin runs its own blockchain and operates a proof-of-work consensus system.

This is in stark contrast to Shiba Inu, which has become a top meme-coin competitor in recent years. Shiba Inu was built on top of the Ethereum network, making it compatible with a wide range of decentralized applications (dApps). This essentially makes Shiba Inu more compelling for stakeholders.

Lacking real-world utility

In my opinion, the leading indicator for why a cryptocurrency will have long-term viability comes down to its ability to introduce real-world utility. Bitcoin aims to be a totally new monetary network, potentially replacing fiat currencies or gold. Ethereum wants to be the world's decentralized computer, with smart contracts paving the way for dApps that could draw greater usage over time.

However, there's an area where Dogecoin falls way behind. According to cryptwerk.com, only 2,500 merchants accept this token as a method of payment. That isn't anything to write home about.

Besides possibly being used as a medium of exchange, Dogecoin is mainly viewed as a tool for financial speculation, but its structure leaves much to be desired. Whereas Bitcoin has a fixed-supply cap of 21 million, there are a jaw-dropping 10,000 new Dogecoin tokens created every single minute, and there's no maximum supply. This makes it difficult for the price to rise significantly unless demand were to skyrocket for some reason.

It's hard to believe that Dogecoin's utility will meaningfully grow in the years ahead. According to Electric Capital, this crypto only had 21 full-time developers working on it in July. This puts it 81st on the list in terms of developer activity, and that's not a good sign for long-term progress.

Don't get sucked into the hype

As of this writing, Dogecoin trades 80% below its peak price, a record that was achieved during meme-stock mania in the spring of 2021. I don't think there's any reason to believe that this all-time high will be eclipsed. Dogecoin simply doesn't possess any valuable catalysts besides the occasional hype cycle, which is impossible to predict.

Speculators might still want to take a gamble on this token in the hopes that it can soar in short order. However, I believe this is a poor use of one's hard-earned savings. There's a greater likelihood that Dogecoin's price will go to zero over the next five or 10 years than it will produce an adequate return.

Should you invest $1,000 in Dogecoin right now?

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Neil Patel and his clients have no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

Should You Buy Dogecoin Right Now With $100 and Hold Through 2024 and Beyond? was originally published by The Motley Fool