Dogecoin has consistently been one of the most attention-grabbing meme coins for investors. Its shining period, as well as the open support from Elon Musk, brought about a powerful phase that could place this meme coin within the top 10. What potential scenarios indicate for the future of DOGE, which investors hope might one day reach 1 Dollar, is a topic of interest.
A Potential Look at Dogecoin
Dogecoin (DOGE), as of the time of writing, continues to hold its position as the 10th cryptocurrency by market value and is only 500 million dollars behind the 9th ranked AVAX.
When looking at the rankings, it’s important to remember that this could be temporary and rapid changes in position can occur due to the constant capital flow in the market.
As of the time of writing, DOGE has a market value of 11.38 billion dollars, holding 0.72% of the overall cryptocurrency market cap, which is valued at 1.567 trillion dollars.
At the time of writing, Dogecoin’s price is 0.07953 dollars, with 142.827 billion DOGE in circulation. Let’s take a look at what kind of change a specific capital inflow could bring to DOGE.
Considering the changes in supply and demand, as well as fund movements, Dogecoin experiences volatile price movements. On the other hand, looking at Bitcoin, it holds approximately 52% of the total market value and appears to be worth around 820 billion dollars.
If Dogecoin were to gain an additional 1% of the total current cryptocurrency market value, its market cap would increase by about 15.67 billion dollars, reaching a level of 27.07 billion dollars. Assuming the circulating supply remains constant, DOGE’s price could rise to 0.1895 dollars at that moment.
Commentary on Dogecoin
Furthermore, Dogecoin also faces challenging periods due to the continuous increase in circulating supply. The increasing supply can lead to a price drop or cause the price to remain stable. As a reason for this, over the last 5 years, a fixed rate of 5 billion DOGE from mining or an inflation rate of 3.5% has been reported.
When compared with other meme coins in the total cryptocurrency ecosystem, Dogecoin has been performing much better than its competitors. Consequently, investor interest has never waned.
When the calendars showed the year 2021 and prices reached ATH, a pullback had started across the entire market. During this period, the pullback in DOGE was much less significant.
Depending on the trust DOGE has, perhaps with new support from Elon Musk, if this trend continues, DOGE could indeed carve out a new 1% dominance from the total existing cryptocurrency market value.
