In order to determine whether Dogecoin will ever hit $1, $5, or $10, I will evaluate the cryptocurrency in this post. Due to the fact that I lack a crystal ball to predict future cryptocurrency prices, please use this analysis with caution. Software developers Billy Markus and Jackson Palmer came up with the cryptocurrency known as Dogecoin because they wanted to develop a quick, entertaining, and fee-free alternative to traditional banking (a meme crypto currency).
Market Cap Analysis
Market capitalization or Market cap
for short is just another way to measure a cryptocurrencies value, it could indicate the growth potential of a cryptocurrency. It is basically used to indicate how popular a cryptocurrency is. Although market cap may be seen as important to some, it’s importance is often criticized. Note that many people believe cryptocurrencies with a large capitalization are generally considered to be safer investments compared to other cryptocurrencies.
Dogecoin has a market capitalization of $18,184,954,659, or around $18.18 billion, as of this writing (Feb. 02, 2022), with a circulating supply of about 132,670,764,300 DOGE, or roughly 132.67 billion Dogecoins, and a current price of $0.1372 USD per coin, or 13.72 cents.
Simply multiplying the current price by the available supply will give us the market cap. Therefore, to find Dogecoin’s market value, simply multiply its price (now $0.1372) by its circulating supply (currently $136,707,643,00), which yields 18,202,428,861.96 or roughly $18.2 billion. The market cap difference could be due to a rounding error, although the numbers are reasonably close. You may have noticed that the number is different from the market cap that coinmarketcap.com is showing in the image above. Check here for further details about this.
We can now contrast these market caps with those of other cryptocurrencies like Bitcoin (BTC) and Ether/Ethereum using the graphic above (ETH). The market capitalization of bitcoin is presently around $699.95 billion. If Dogecoin reaches merely $5 per coin at its present supply, that market cap approaches that of Dogecoin. Dogecoin would overtake Ethereum as the second most valuable coin by market cap if its price reached $5 today at the current supply. It’s not awful that Dogecoin is presently ranked number 11. So, just going by this.
Yes, it is possible for Dogecoin to reach $5, especially if the cryptocurrency market as a whole increases. However, in my opinion, this won’t happen until Bitcoin increases in price, as the price per coin would need to be about (5/0.1372) or 36.44 times its current value (not that this is impossible as we have seen the price increase by 1000 times in the past and many people doubted it would ever get anywhere near its current low price). Let me highlight that people did not anticipate it to reach the present low price, which means that Dogecoin’s price went much higher than it is today, and who knows, it might happen again.
Dogecoin would surpass Bitcoin (the original cryptocurrency) for the top spot in terms of market value if it were priced at $10 per coin at the current supply, giving it a market worth of around $1.33 trillion and becoming the first cryptocurrency to reach that milestone. It would also exceed Ethereum. These two cryptocurrencies hold two of the top ten spots for cryptocurrencies by market cap and have been around the longest.
Additionally, a market cap of $1.33 trillion would make Dogecoin more valuable than Tesla, Meta, a.k.a. Facebook, and Netflix, which each presently have market caps of $677 billion, $942 billion, and $192 billion, respectively. In actuality, at their present market caps, it would make Dogecoin more valuable than Facebook and Netflix combined. However, it would still have a lower market capitalization than firms like Apple (which has a market capitalization of approximately $2.8 trillion), Microsoft (which has a market capitalization of approximately $2.3 trillion), Alphabet, or Google, (which has a market capitalization of approximately $1.9 trillion), and Amazon (which has a market capitalization of approximately $1.9 trillion).
So, based just on market capitalization, I may conclude that Dogecoin could reach $10 with its present supply, but at this moment, I don’t anticipate many other cryptocurrencies to outperform Bitcoin and Ethereum in terms of market capitalization. I don’t think it’s likely for Dogecoin to hit $10 per coin or for any other cryptocurrency to reach a trillion dollar market cap before Ethereum or Bitcoin, in my opinion, until those two do. However, everything is possible.
Last but not least, if dogecoin’s price were to fall to $1 today, its market capitalization would be around $132.67 billion, making it the third-largest coin by market capitalization right now, surpassing rivals of Ethereum such as ADA and Solana. Therefore, this price appears feasible but improbable until the value of the entire cryptocurrency market increases and Dogecoin regains the popularity it once enjoyed.
What would the market cap be for Dogecoin if the price could once more hit 50 cents? In such case, Dogecoin’s market cap would be around $66.3 billion, placing it at position four in terms of market cap. Therefore, even though the current cryptocurrency market is down and this doesn’t seem likely, it’s more likely than Dogecoin reaching a dollar or higher especially since it has already reached this price. This is because Dogecoin has previously reached 50 cents per coin when many people didn’t think it would. But keep in mind that past success does not guarantee future success.
You might counter that you can also alter the supply of coins, in addition to the price per coin. If the circulating quantity of Dogecoin were to be reduced while the market capitalization remained constant, the price would correspondingly rise; conversely, if the circulating supply were to be increased while the market capitalization remained constant, the price would fall. By altering or rewriting the Market Cap calculation from before, we can easily demonstrate that this is the case.