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Longtime meme coin favorite Dogecoin (CRYPTO: DOGE) is up less than 1% for the year. That type of market underperformance really stands out when you consider that Bitcoin is up almost 120% for the year.

Zoom out beyond this year, and the picture gets even worse. Dogecoin has been on a long decline since May 2021, when it hit an all-time high of $0.74 during the peak of meme coin mania.

Currently trading at just $0.071, Dogecoin is just about one of the worst crypto investments you could possibly make right now. Here’s why.

The $10 billion market cap conundrum

But surely, you might say, there’s value somewhere with Dogecoin. After all, it is still the world’s ninth-largest cryptocurrency, with a staggering $10 billion market capitalization. If Dogecoin were a stock, it would fall into the large-cap category, which includes stocks with market capitalizations of more than $10 billion. Examples of companies with $10 billion valuations include CarMax, KeyCorp, and Wynn Resorts.

Image source: Getty Images.

But unlike these companies, Dogecoin doesn’t offer any obvious value. It doesn’t own any cars, banks, or hotels. It is a meme coin, pure and simple.

In fact, it was created as a joke, and it is proud to announce this at every turn. There was absolutely no planned utility for the coin from the outset.

Dogecoin describes itself as an “accidental crypto movement that makes people smile.” Granted, it’s almost impossible to talk about this crypto without making some silly dog jokes, and yes, the Dogecoin dog mascot is cute. But is Dogecoin really worth $10 billion?

The $1 price problem

And then there’s the matter of Dogecoin’s price. If you look at a long-term trading chart of Dogecoin, it’s stunning. There’s basically a long flat line near zero from December 2013 (when it launched) to January 2021, when it suddenly increases in value dramatically. But it then loses its value within a matter of weeks, and has been on a slow road to nowhere ever since.

Just to be clear: Dogecoin has been around for nearly 10 years — an entire decade — and has never once broken through the $1 mark. I can’t think of any stock that investors would hold on to, year after year, as it does nothing.

What makes Dogecoin’s decline so ironic is that it coincides almost perfectly with the appearance of Elon Musk, a longtime Dogecoin supporter, on NBC’s Saturday Night Live. On May 7, 2021, the day before Musk appeared on the show, Dogecoin was trading for $0.73. Within weeks, it was trading for just $0.30. This may have to do with the fact that Elon Musk basically admitted Dogecoin was “a hustle” during one of his SNL skits.

The Elon Musk X factor

And that brings me to my last major issue with Dogecoin: The acquisition of Twitter (now called X) by Musk has resulted in absolutely no value creation for Dogecoin. Back in April 2022, the thinking was that Musk would acquire Twitter, and then immediately add some sort of integration for Dogecoin, such as the ability to make micropayments on the platform. But that simply hasn’t happened, and it has now been 18 months since the acquisition was announced.

Granted, there have been a few fun memories along the way. Musk famously appeared at this year’s Super Bowl next to media mogul Rupert Murdoch while wearing a Dogecoin t-shirt. And he had a bit of fun around April Fool’s Day, swapping out the blue Twitter bird icon for the Dogecoin dog icon on the social media platform. And there is even speculation that Musk’s SpaceX will help Dogecoin become the first cryptocurrency to travel to outer space and become an intergalactic medium of exchange.

But what if I’m wrong?

Maybe Dogecoin is a giant inside joke, and I’m just not in on it. Maybe Dogecoin really is headed to the moon on a crypto rocket ship (both literally and metaphorically). And maybe Musk is such an incredible genius that I just can’t possibly understand what he plans to do with Dogecoin.

But I don’t think so. Dogecoin has had 10 years to succeed and has failed to do so. So don’t get fooled by the $10 billion market cap or the constant buzz and speculation. Dogecoin is a cryptocurrency to avoid no matter what. Save yourself the heartache and buy another $10 billion market cap stock instead.

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Dominic Basulto has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and CarMax. The Motley Fool has a disclosure policy.

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