Dogecoin to $1? No Jokes – Know the Facts today!
Will Dogecoin reach $1? If you are accumulating Dogecoins speculating that it will reach a dollar, you should consider the factors that would prevent it from reaching such highs. Chances for Dogecoin reaching $1 is “Rare,” or a “Big No.” Dogecoin might hardly be worth $1 in the future even though it is backed by an active community and is used by thousands of Crypto users.
There is not just a particular reason for this but is based on several factors. There is no denial of the fact that Dogecoin has a lot of support from several Crypto veterans and active development. Many webs and mobile apps are integrating the currency into their platform, but this doesn’t mean that it will be worth a dollar. There are various reasons for this, and some of them include
Dogecoin Started as Joke Currency
On a serious note, this coin started as a joke. The coin founder, Billy Markus, created it for fun. There was not a central idea or a solid team behind the project. The developer had his inspiration from an internet meme and wanted to create a coin out of it. Upon its release, speculation and strong support from the community drove the price. The project didn’t have any use case in the beginning, and there was not a whitepaper either. The developer introduced the currency with no solid backing from venture capitalists to increase its influence in the Crypto market.
Supply in Billions
Supply is one of the significant factors for the determination of Cryptocurrency prices. Mainly Cryptocurrencies are deflationary; this means that their supply reduces over time until all the coins in the protocol are mined. In comparison, Dogecoin is an inflationary cryptocurrency. Although Dogecoin’s inflation in terms of percentage decreases, this still doesn’t give the coin a green signal to touch $1 mark. Hence, any increase in price led by demand is likely to meet with the increasing supply. Further, there is also no hard cap for Dogecoins that will exist.
In other words, if the supply of any coin is in billions, it will prevent the price from reaching new highs, especially the $1 mark. At the time of writing this post, the circulating supply of Dogecoin is 118,001,264,037. If somehow, one Dogecoin was worth a dollar, this would mean market capitalization of $118,001,264,037 for Dogecoin. That is almost twice of current Bitcoin market cap, and reaching such a position would be mind-boggling.
Already among top 50 Crypto Currencies
Dogecoin is already among the top 50 Crypto Currencies while writing this post. This makes it harder for Dogecoin to compete with its competitors and surpass them in market capitalization. Just for thought, ever wonder what it would like to have Dogecoin dethroning Tron or other valuable Cryptocurrencies project?
This is not something impossible but needs significant efforts, development, and hard work. In years to come, Dogecoin is likely to struggle for its dominance among the top 50 cryptocurrencies as the Cryptocurrency ecosystem evolves into a better and healthier landscape.
So, will we see Dogecoin reaching $1?
Much is possible in Cryptocurrencies. Speculation, hype, and affiliation to third parties can impact a coin’s price. We all know how the market performed during the earlier bull run, leading Altcoin prices to reach new highs. But this doesn’t give space to abnormal fluctuations in the market, and Dogecoin reaching $1 would dethrone Bitcoin as the biggest Cryptocurrency in terms of market capitalization which seems unlikely.
Did we miss something? Or are there any misstatements you need to point us out? Let us know in comments while you read about the promising Dogecoin Future.
Disclaimer: This is just an opinion and should not affect the user’s decision.