Dogecoin faces several key challenges that impact its long-term viability. One major issue is the lack of active development. Unlike Bitcoin or Ethereum, Dogecoin has a relatively small team of developers, and progress on upgrades or innovation is slow. This limits its ability to evolve, scale, or adopt new technologies.

Another challenge is perception. Dogecoin began as a meme, and despite its popularity, many still view it as a joke rather than a serious cryptocurrency. This hinders institutional adoption and mainstream use, reducing its utility beyond speculation.

Dogecoin also faces inflationary pressure, as there is no maximum supply cap. While this helps support continuous mining and transactions, it may discourage long-term holding, limiting price stability.

Additionally, centralisation of ownership is a concern. A small number of wallets hold a significant portion of Dogecoin’s total supply, posing risks of price manipulation or large-scale sell-offs.

Finally, regulatory uncertainty in the crypto space adds risk. Governments worldwide are increasing scrutiny of digital assets, and Dogecoin, with its meme roots and high volatility, could be vulnerable to stricter regulation.

Together, these challenges create uncertainty around Dogecoin’s future as a credible and sustainable digital currency, despite its strong community and media presence.