Once dismissed as a meme with no future, Dogecoin is being re-evaluated by serious players in the investment world. As such, asset management firm 21Shares has not only filed for a Dogecoin ETF in the U.S., but is also cutting through the noise to release an in-depth report examining the case for DOGE as a viable addition to diversified portfolios.

According to their analysis, even a small allocation—just 1%—to Dogecoin within a traditional 60/40 stock-bond portfolio, already adjusted to include a bit of Bitcoin, could noticeably impact returns. In the case of this specific portfolio, the analysis shows that a 1% allocation to Dogecoin could have boosted returns by 0.5% annually over the past 10 years.

The report, titled “Dogecoin: A Persistent Meme in a World of FOMO,” explores three potential future price outlooks for Dogecoin by 2025.

The most optimistic scenario, dubbed "The Dogefather's Vision," envisions a price of $1.42. This target is reached if the coin continues its past explosive growth, with an assumed 189% annual growth rate over the next two years. This rate is based on the pattern of Dogecoin’s past price surges, most notably before its 2021 bull run.

This bullish outlook hinges on a combination of sustained retail investor interest, increased institutional participation thanks to clearer regulations, and significant progress in Dogecoin's real-world adoption. A key factor will be Elon Musk's plans for integrating Dogecoin payments on X, formerly known as Twitter. Should these factors align, the report suggests that DOGE could not only reach but surpass its former all-time high.

However, 21Shares also presents more conservative estimates. In a "Hope for the Best" scenario, which assumes a more modest 10% CAGR in DOGE's price recovery from its previous peak, the report forecasts a price of $0.38 by 2025. This estimate factors in a gradual increase in DOGE's value from its peak in 2021, presenting a more pessimistic yet still positive outlook compared to the current price.

Finally, a neutral scenario anticipates the coin to be trading at approximately $1 by 2025, capturing roughly 3% of a projected $5 trillion crypto market. This scenario assumes a slightly smaller market share for Dogecoin than it previously held.