Dogecoin, the popular meme coin, reached an $80 billion market cap during the 2021 bull run, marking a new all-time high (ATH) back then. However, hitting that market cap again this time wouldn’t mean a new ATH. Here’s why:
Inflationary Nature of Dogecoin
Dogecoin has an unlimited supply, meaning more coins are constantly being created. This constant influx of new coins dilutes the price, making it harder for Dogecoin to reach new highs.
Since 2021, more Dogecoins have been mined, meaning the existing coins are worth less. Even if Dogecoin hits an $80 billion market cap again, its price would be lower than its current ATH of $0.73.
Market Cap Calculation
Market cap is calculated by multiplying the coin’s price by the total number of coins in circulation. Because there are now more Dogecoins in circulation than in 2021, the price would need to be lower to reach the same market cap.
Potential for Future Growth
Despite the inflationary nature, several crypto analysts believe Dogecoin could still surpass its current ATH. Some analysts, like Kevin Capital, predict Dogecoin could reach $1, which would be a new ATH. Other analysts, like Crypto Kaleo and Master Kenobi, agree with this prediction.
Based on historical patterns, Kevin Capital has even predicted Dogecoin could reach $3.8 at the peak of this bull run.
Analyst Dima James points out that Dogecoin has consistently seen larger gains in each successive bull cycle. He believes this pattern could lead to a price increase of over 21,000% for Dogecoin this time around.
Current Price and Outlook
Currently, Dogecoin is trading at around $0.11, up over 4% in the last 24 hours. While an $80 billion market cap might not represent a new ATH, the potential for growth remains strong, with many analysts predicting significant gains for Dogecoin in the future.
