Dogecoin (DOGE) reached its all-time high price of $0.73 and the highest market value of $88.80 billion on May 8, 2021. Dogecoin has a fixed annual issuance of 5 billion DOGE, which leads to a decrease in the annual inflation rate over time. However, even with a decreasing inflation rate, DOGE is still heavily influenced by the supply inflation model.
Based on the data obtained on August 24, with a circulating supply of approximately 140.72 billion DOGE, a Dogecoin could be valued at around $0.63, which is $0.10 (13.7%) lower than its all-time high price in US dollars two years ago. This suggests that Dogecoin may constantly need increasing demand to meet its historical prices with a lower supply.
However, DOGE is currently trading at $0.063, which could offer Dogecoin investors a 900% potential gain for current purchases if the demand for the meme cryptocurrency is met. In comparison, the current price is -91.42% lower than its all-time high price.
Considering all factors, there is no guarantee that DOGE will reach its all-time high market value of $88.80 billion; it entirely depends on the developments, news, sensitivity, and demand in the Dogecoin ecosystem. Therefore, it is also possible for the leading meme coin to surpass this historical milestone.
Dogecoin’s inflation originates from the block subsidy paid to miners contributing to the Proof of Work (PoW) model of the network, similar to Bitcoin (BTC) and other PoW cryptocurrencies.
The fixed block subsidy, also known as ‘tail emission,’ is used by Monero (XMR), a leading privacy coin with significantly lower inflation than both DOGE and BTC.
However, in 2014, Dogecoin and Litecoin (LTC) adopted a new system called ‘merged mining,’ where miners simultaneously mine LTC and DOGE, contributing to the hashrate of both networks. This explains the correlation with its metrics according to BitInfoCharts.
Predictions have also been made about the price of Ethereum if it reaches its all-time high market value, as well as the price of XRP if it achieves its all-time high market value.
In particular, Avalanche (AVAX), a leading layer-1 blockchain for DeFi and Web3, may experience a significant negative impact on its price on August 26, as 9.54 million AVAX (worth $101.14 million) new tokens will be released on that day.