Dogecoin Shakes Off Meme Status—21Shares Data Shows It’s a Portfolio Powerhouse
Forget ’to the moon’—Dogecoin’s punching above its weight in real portfolios. 21Shares’ latest analysis reveals DOGE isn’t just a joke anymore; it’s delivering alpha when mixed with traditional assets.
High risk, higher returns? The data suggests yes. While Wall Street hedgies obsess over basis points, a sprinkle of DOGE in 2023-2024 portfolios would’ve made even Bitcoin allocations look sleepy. (Cue the ’diversification is for cowards’ crowd sweating.)
Final thought: In a market where ’fundamentals’ mean whatever CNBC says today, maybe the dog with the laughing face knows something we don’t. Or maybe finance is just performance art with extra zeros. Either way—portfolio managers ignoring crypto’s wildcards might regret it at the next ATH.
Stress-tested portfolios
The firm’s portfolio stress-testing showed that the baseline portfolio, a conventional 60/40 mix of stocks and bonds, returned 7.25% annually.
Meanwhile, including a 3% Bitcoin and 1% Dogecoin allocation increased annualized returns to as high as 8.95%. Sharpe ratios improved in nearly all simulations, suggesting better risk-adjusted performance.
Although the addition introduced some volatility, the increase in maximum drawdown was only marginal, and even without rebalancing, the losses remained contained.
The report emphasized that rebalancing is essential, especially monthly or weekly, to maintain return potential and prevent risk from building up quietly during turbulent markets. The firm attributed Dogecoin’s effectiveness to its low correlation with both traditional assets and the wider crypto market, along with a strong historical return profile.
According to 21Shares, this makes Dogecoin a viable diversifier rather than just a speculative meme.
Dogecoin’s potential path
The report outlined three price projections for Dogecoin in the current market cycle: a bear case, a neutral case, and a bull case.
In the bear case, 21Shares argued that Dogecoin’s recent rally may have already priced in much of its cycle potential.
If the token compounds at 10% annually from its 2021 high of 0.73, it would reach approximately 0.38 by late 2025. This would still be more than double its current value but would mark the first time Dogecoin fails to set a new all-time high within a full market cycle.
In the neutral case, the firm assumed the total crypto market cap would peak at $5 trillion, with Dogecoin maintaining a 3% share. This scenario would result in a DOGE market capitalization of about $150 billion, implying a price near $1 per coin.
This assumes the token continues to lead the memecoin category while adapting to increased competition and changing retail trends.
The bull case relies on historical cycle growth. Between its 2018 low of $0.007 and the 2022 cycle bottom of $0.0585, Dogecoin posted a compounded annual growth rate of 189%.
If Doge mirrors that trajectory this cycle, it would rise to approximately $1.42. To achieve this, 21Shares said the token would need support from renewed retail enthusiasm, increased adoption, and integration with platforms such as X.
The firm concluded that with proper structure and rebalancing, a small allocation to Dogecoin is not reckless but potentially rewarding.
