Dogecoin will never reach $100. Here’s why.
With all the hype around Dogecoin [DOGE], many people believe that investing in Dogecoin now [24th May 2021] will result in massive returns. However, unlike Bitcoin which has a maximum supply, Dogecoin will probably not see any exponential growth anymore because of its insane circulating supply. In this article, I will explore the theoretical ceiling of Dogecoin and explain why Dogecoin can never reach $100.
In 2021 alone, the price of Dogecoin had increased from $0.0047 to $0.3119 as of 24th May 2021. That is a whopping 66x increase or a 6600% increase. To put into perspective, if you had invested $100 on January 1st, you would have $6600 today.
From its all-time low at $0.00008547 on 7th May 2015 to its all-time high at $0.7376 on 8th May 2021, that is an incredible 8629x increase or an 862,900% increase. Likewise, if you had invested $100 during its all-time low and sold during its all-time high, you would have $862,900 at your disposal. Of course, no one probably held all the way and sold at the all-time high but still, looking at this year’s statistics alone, a 6600% increase is absolutely mind-blowing.
Dogecoin had already increased by that much. How much further can it go? Well, when it was at its all-time high at $0.7376, the market capitalization of Dogecoin briefly surpassed 90 billion, which is an amount greater than that of FedEx or Airbnb.
The total circulating supply of Dogecoin right now is 129,721,566,471 (129 billion). This amount is increasing by 10,000 per minute or 14,400,000 coins per day. Compared to Bitcoin’s supply cap of 21,000,000 (21 million), Dogecoin is not scarce at all.
If Dogecoin were to hit $100 now, it means that the current market cap will be about 13 trillion dollars, or six times the market cap of the largest company in the world, Apple. (Market cap is Price ($100) x Supply (130 billion) = 13 trillion). Also, the total amount of simple money circulating in the world is about 36.8 trillion dollars. This means that a third of the world’s circulating money will be in Dogecoin, which is extremely implausible from a technical standpoint.
However, not all hope is lost. If there is anything that 2021 had taught us, it is that nothing is predictable. Nobody would have ever predicted that Dogecoin will reach a market cap of 90 billion at its all-time high. Even the Dogecoin creator, Billy Markus, is baffled at its ‘meteoric’ rise. Although reaching $100 is literally defying the impossible, Dogecoin can potentially reach $10, putting its market cap at 1.3 trillion. However, just imagine the insanity of the hypothetical situation: A meme coin was created as a joke, surpassing 1 trillion dollars in market cap, larger in market cap than companies like Facebook and Google.
Therefore, a reasonable prediction for the future price of Dogecoin would be about $1, with its market cap being 130 million. I think that’s pretty hard to achieve, but it won’t be impossible. Then again, who knows? If everyone in the world decides that Dogecoin will be our universal currency, the price of $100 will become the new normal.
