After rising from about $0.0002 to more than $0.70 in a matter of months, many people have found themselves asking the question “How high will Dogecoin go?”
Many people investing in cryptocurrency for the first time appear curious about DOGE and other altcoins. Even though the DOGE price crashed more than 70% all the way down to $0.20 before recovering somewhat, Dogecoin still finds itself among the top 10 cryptocurrencies by market cap.
But will this always be the case? Can Dogecoin reach $1? What about $10 or even $100 or more?
There are several reasons the odds are against DOGE climbing too much higher. Valuations like $1 or even $10 are theoretically possible. But a price target of $100 or more, isn’t realistic for DOGE, given the way the coin works.
While it’s impossible to predict the future when it comes to the price of DOGE or any other investment, we can make a reasonable hypothesis as to whether DOGE will ever reach $100.
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Will Dogecoin Reach $1?
Dogecoin reaching $1 is a distinct possibility. This would be less than 50% higher than the all-time high of about $0.70 per DOGE.
The question “can Dogecoin reach $100,” or $1, or any price for that matter, has to do with two things: DOGE’s market cap and its mining dynamics.
Understanding the size of the DOGE market cap in relation to its new supply makes it clear how high the price of DOGE can or can’t go. Every minute, miners receive a reward of 10,000 DOGE for solving a new block. This amounts to 5 billion new Doge coins being minted each year.
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By the end of the year 2030, there will likely be about 180 billion DOGE circulating. For the price of DOGE to reach $1 by that time, the market cap of Dogecoin would have to be $180 billion.
The current market cap of DOGE at the time of writing is about $37 billion. There are currently 130.8 billion DOGE in circulation. To reach a valuation of $1 per coin, the market cap of DOGE would have to more than triple, rising by more than $80 billion.
To get to $1, then, there would have to be a lot of money flowing into DOGE. But it’s achievable, and Billy Markus, the creator of the meme cryptocurrency has said he believes it’s possible.
Can Dogecoin Reach $10?
For the DOGE price to continue climbing, there has to be much more money flowing into DOGE than new coins being mined. Because DOGE has no supply limit, and the block reward is so large (10,000 coins per block, compared to 6.25 coins per block for BTC), it becomes exponentially harder for Dogecoin to achieve a higher price over time.
The 2021 bull market in Dogecoin saw its price rise from $0.0002 to $0.70 in a matter of months was a unique event. While the exact conditions that lead to any market event can be hard to pin down, there are a few unusual circumstances that combined at the same time, likely giving DOGE a huge boost.
• It was in the middle of a Bitcoin bull market, when BTC and other cryptocurrencies were also hitting new all-time highs.
• The coronavirus pandemic of 2020 had been going on for less than a year, and many people around the world were still staying home. Some of them were investing for the first time.
• Dogecoin saw several notable celebrity endorsements in quick succession with one another. The DOGE price spiked every time such individuals tweeted about it.
The celebrity endorsements seemed to have had the most obvious effect on the DOGE price. Some have accused DOGE of functioning like a giant pump-and-dump scheme because of its quick rise and fall.
That said, it’s possible for DOGE to reach $10, at least briefly, at some point in the next decade.
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Can Dogecoin Reach $100
It would be nearly impossible for Dogecoin to reach $100, because there isn’t quite enough money in the whole world.
Every $1 that the Dogecoin price were to increase would require an additional $180 billion in 2030. To reach $100 by 2030, then, there would have to be $18 trillion invested in Dogecoin.
Global GDP is estimated to be about $87 trillion. The GDP of China is around $15 trillion, while the GDP of the U.S. is about $21 trillion.
In other words, a $100 DOGE price would require a market capitalization of more than the annual gross-domestic product of the entire nation of China by the year 2030. It doesn’t take a market genius to determine that this simply isn’t going to happen.
Even if that much money wanted to find a home in DOGE, it’s unclear whether or not crypto exchanges would be able to handle that kind of volume.
There’s one more factor to consider. The total holdings of all the DOGE that has been mined, as of 2021, are centralized into the hands of just a few crypto wallets.
One wallet holds more than 25% of all the DOGE in existence, while the top 20 wallets hold over 50% of all DOGE.
How high could Dogecoin go? The answer is: Probably not that high. If for no other reason, the people who control a few wallets with billions of coins in them are likely to take some profits whenever the price of DOGE sees a sharp rise, capping any gains.
Can Dogecoin Reach $1000
If the answer to the question “can Dogecoin reach $100” is no, then there’s no way that Dogecoin could ever reach $1,000.
It would take so much money for this to become reality that there’s really no scenario where it could happen.
Much of this stems from the fact that DOGE is a meme coin with little technical development. Traders typically use it as a vehicle for transferring value or seeking speculative gains, rather than HODLing it.
This represents a stark contrast to Bitcoin, which has become more of a mainstream store of value and investable asset class due to its active development community, high level of network security, and its fixed supply limit of 21 million bitcoins. The supply of newly mined bitcoins also gets cut in half every 4 years, whereas no such “halving” event ever occurs for Dogecoin.
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Bitcoin’s market cap eclipsed at the time of this writing is above the $1 trillion mark. Because the supply of BTC is always declining, the market cap and price can continue rising, absent some unforeseen catastrophe.
The same cannot be said for other types of cryptocurrency like Ethereum and Dogecoin that have no supply cap.
Much of the answer to the question “Can Dogecoin reach $100?” has to do with simple supply-and-demand dynamics. Because of the way DOGE mining works, it’s nearly impossible for one DOGE to reach a valuation of $100. That said, $1 per DOGE could happen, and $10 is a longshot but not completely outside the realm of possibility.
Regardless of your outlook for DOGE, if you’re interested in beginning to trade cryptocurrency, a great way to get started is by opening an account on the SoFi Invest® brokerage platform. You can use it to trade DOGE, Bitcoin, Ethereum, Litecoin, and cryptocurrencies, along with stocks and exchange-traded funds.
Photo credit: iStock/Alexander Buerkle
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