Cryptocurrency investment firm 21Shares has released research challenging the perception of Dogecoin (DOGE) as merely a “memecoin.” The report suggests it might be a strategically sound addition to investment portfolios.
According to their analysis, incorporating even a small 1% allocation of Dogecoin into a Bitcoin-enhanced 60/40 portfolio resulted in improved returns and better risk-adjusted performance metrics.
21Shares says even 1% Dogecoin portfolio is rewarding
21Shares’ research tested the impact of adding a 1% Dogecoin allocation to a “Bitcoin-enhanced growth portfolio,” which they describe as a traditional 60/40 portfolio (60% stocks, 40% bonds) with an additional 3% Bitcoin allocation. This approach was designed to show how Dogecoin and Bitcoin might complement each other in a portfolio that most cryptocurrency investors would find familiar.
.@dogecoin isn’t just a meme anymore—it might be a smart addition to your portfolio.
Our latest research shows that even a 1% DOGE allocation boosted returns and improved Sharpe ratios in a Bitcoin-enhanced 60/40 portfolio.
Read the full breakdown: https://t.co/bKh0SEBJgv pic.twitter.com/oFEOxeR1PT
— 21Shares (@21Shares) April 30, 2025
According to their data, every portfolio approach including Dogecoin delivered stronger returns than the benchmark. While the benchmark portfolio returned 7.25% annually, the DOGE-enhanced portfolios achieved returns as high as 8.95%. Additionally, Sharpe ratios improved in almost all test cases, which means better risk-adjusted returns.
The analysis acknowledges a slight increase in volatility with Dogecoin inclusion. However, they noted that drawdowns remained “largely contained.” Even portfolios with no rebalancing saw max drawdowns only deepen by a few percentage points, which 21Shares interprets as evidence that “even a 1% DOGE allocation adds meaningful punch without destabilizing the broader portfolio.”
DOGE price predicted to hit $1.42 in bull case
21Shares shares three potential price scenarios for Dogecoin by 2025. This ranges from bearish to bullish projections. In their bull case scenario, they suggest the Dogecoin price could reach approximately $1.42. This is a 7.67x multiple from current prices.
This optimistic projection is based on analyzing Dogecoin’s growth pattern from previous market cycles. The analysis notes that DOGE’s price moved from a bottom of $0.007 before the last bull run to $0.0585 at the bottom of the current cycle. This is a compound annual growth rate (CAGR) of 189%. Applying similar growth metrics forward leads to the $1.42 price target.
In their neutral case scenario, 21Shares forecasts a $1.00 price target. This is approximately a 5.5x increase from current levels. This places the overall market capitalization of the cryptocurrency at $5 trillion in this cycle with Dogecoin adding a 3% market share. This would translate into a $150 billion market cap for DOGE.
The bear case is more conservative with an estimated target price of $0.38. This case employs the premise that Dogecoin cannot print a new all-time high in the current market cycle for the very first time in its existence. It may still provide positive returns based on an estimated 10% CAGR from its peak of $0.73 in 2021. Amidst these bullish cases, there has also been speculation about whether Shiba Inu can flip Dogecoin.
The post Dogecoin Isn’t Just A Memecoin: 21Shares Hints At DOGE Price Rally appeared first on CoinGape.
