Down 87%, Should You Buy the Dip on Dogecoin or Avoid the Meme Token?

Dogecoin has struggled mightily to post durable gains in recent years.Dogecoin (DOGE +13.51%) might be extremely volatile. But its performance can't be denied. In the past 10 years, the digital asset has skyrocketed more than 34,000% (as of Feb. 10). But the downfall is notable. As of this writing, this meme token is trading a stomach-churning 87% below its peak from May 2021. Should you buy the dip or avoid Dogecoin altogether? Image source: Getty Images. Only buy if you believe one thing Dogecoin is its own blockchain network, which contrasts with a lot of cryptocurrencies that are built on top of Ethereum. This means that it has less functionality. Consequently, Dogecoin can be viewed as its own payment network. This makes it a direct competitor to Bitcoin, the world's first and most valuable cryptocurrency. Investors who are interested in buying Dogecoin should probably be bullish on one key development occurring. Investors should only add Dogecoin to their portfolios if they have a firm belief that in the future, its adoption as a store of value and medium of exchange will grow. Again, this puts Dogecoin in a head-to-head battle against Bitcoin, which has a market cap that's about 88 times more valuable. There's really no reason to believe the dog-themed token can hold a candle to Bitcoin, though. Bitcoin is viewed as a more legitimate financial instrument around the world. And due to its first-mover advantage, liquidity, network effect, and fixed supply, it's in a much better position to succeed in the long run. ExpandCRYPTO: DOGEDogecoinToday's Change(13.51%) $0.01Current Price$0.11Key Data PointsMarket Cap$19BDay's Range$0.10 - $0.1152wk Range$0.08 - $0.30Volume1.5B Betting on hype is a losing game If you don't believe that Dogecoin will make progress as a widely accepted store of value or medium of exchange, then it makes no sense to buy this token. It lacks fundamental characteristics, like a large developer network, buy-in from the traditional financial services industry and regulators, and a hard supply cap. Dogecoin's community of supporters is what keeps it relevant. But even this seems to be fading away, as indicated by the price steadily declining in recent years. There's nothing stopping these people from flocking to the shiny new digital assets that pop up. Of course, that doesn't mean there can't be short periods when the price rapidly rises. But allocating capital to chase this volatility, thinking you can correctly time the market, is an easy way to lose money. The right way to invest is to buy an asset you'd be willing to own for five or 10 years. Dogecoin doesn't even come close to passing this test. Looking to the future, there's a good chance its price will be lower than it is today.Read NextFeb 13, 2026 •By Bram BerkowitzWhy Dogecoin is Rising TodayFeb 9, 2026 •By Adam SpataccoPrediction: This Popular Cryptocurrency Will Plunge 50% (or More) by Year-End 2026Feb 8, 2026 •By Neil PatelHere's Why I Wouldn't Touch Dogecoin With a 10-Foot PoleFeb 6, 2026 •By Johnny RiceWhy Is Dogecoin Flying Higher on Friday?Feb 5, 2026 •By Bram BerkowitzWhy Dogecoin is Getting Slammed This WeekFeb 5, 2026 •By Anthony Di PizioMy 2026 Prediction for Dogecoin Might Surprise YouAbout the AuthorNeil Patel is a contributing Motley Fool stock market analyst covering consumer staples, consumer discretionary, financials, information technology, and communication services. Prior to The Motley Fool, Neil worked in corporate finance roles at JPMorgan Chase and Capital One. He also has experience working on a start-up in the cryptocurrency space. He holds a bachelor’s degree in business administration with a specialization in finance from Ohio State University.TMFNeilPatelStocks MentionedDogecoinCRYPTO: DOGE$0.11 (+13.51%) $+0.01*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.