Can Dogecoin Reach $10?
Dogecoin’s Market Cap Will Grow To $1.32 Trillion If The Coin Gets To $10
Yes, Dogecoin can reach $10.
However, there is one problem – a sufficient amount of money should be put into Dogecoin to get the meme coin to the $10 level.
Here’s the math. The current circulating supply of Dogecoin is roughly 131.56 billion DOGE. If Dogecoin were to reach $10 today, its market capitalization would be about $1.32 trillion.
It should be noted that Dogecoin’s circulating supply is increasing by 5 billion every year, which means that some inflation is built into the coin. However, this inflation decreases over time due to the fixed nature of the added supply.
According to CoinMarketCap, the total crypto market capitalization is $2.17 trillion. The market capitalization of the world’s leading cryptocurrency, Bitcoin, is roughly $930 million. The second largest cryptocurrency by market capitalization, Ethereum, is worth $400 million.
Thus, a Dogecoin at $10 would be worth Bitcoin and Ethereum combined, which means that Dogecoin must replace these cryptocurrencies if the total market capitalization remains at current levels. At this point, this does not look plausible.
Dogecoin’s Success Will Depend On The Success Of The Whole Industry
Total crypto market capitalization is trending higher as adoption of cryptocurrencies grows. As cryptocurrencies gradually become mainstream financial assets, the total crypto market capitalization will continue to grow.
Currently, the market capitalization of Dogecoin represents about 1.4% of total crypto market capitalization. If the current ratio between Dogecoin’s market cap and total crypto market cap holds over time, the total crypto market cap should reach $94 trillion to push Dogecoin to the $10 level.
To put things in perspective, S&P 500 finished the month of August with a market capitalization of $38.2 trillion. Thus, total crypto market cap should exceed the market cap of the world’s main stock index. This does not look plausible as well.
There is also a third alternative option which can push Dogecoin towards the $10 level. In this scenario, Dogecoin’s share in the total crypto market cap grows together with the total crypto market cap, which means that Dogecoin will not have to replace Bitcoin or Ethereum, while total crypto market cap would not have to grow to $94 trillion.
All in all, Dogecoin can theoretically get to the $10 level. However, cryptocurrencies must gain much wider adoption to make this possible while Dogecoin should materially increase its crypto market share.
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