In the 2021 bull race, Dogecoin Reaching a market cap of $80 billion represents a new all-time high (ATH) for the first meme coin. This time will be different if the meme reaches this market cap, as its price will still be lower than its price Current ATH of $0.73.
Why Dogecoin Reaching $80 Billion Market Cap Isn’t a New ATH
Dogecoin community member John Carter explained in an X post that DOGE reaching an $80 billion market would not represent a new ATH for Meme coin This is primarily due to its inflationary status. The meme coin has an infinite number of coins, which means more DOGE tokens will continue to enter circulation.
That means it Dogecoin price They will continue to be diluted as long as they do not exceed the rate at which new currencies are issued. In this case, the price of DOGE has already been diluted, considering that the meme has not reached a new ATH since then. Bull Racing 2021. Meanwhile, more coins have been issued since then.
This explains why DOGE’s market cap of $80 billion did not set a new all-time high. Market capitalization is usually calculated by multiplying a coin’s price by the total number of coins in circulation. when Dogecoin When the market cap reached $80 billion in 2021, there were fewer coins in circulation than now, when more coins were issued through mining.
Furthermore, Dogecoin does not have a deflationary mechanism that could have helped reduce its inflationary status. CoinMarketCap data It shows that DOGE has a circulating supply of 146.37 billion DOGE. In line with this, an $80 billion market cap for the meme would put the price of Dogecoin at $0.5 given the market cap is divided by the circulating supply to get the price.
From a different perspective
Although a market cap of $80 billion would not represent a new ATH for the price of Dogecoin, the main meme coin is likely to surpass its current ATH based on price predictions made by several cryptocurrency analysts for this rally. One such analyst is Kevin Capital, who recently predicted this DOGE can reach $1which would represent a new ATH for the meme coin.
Other cryptoanalysts, incl Encryption kaleo Mr. Kenobi has also agreed that the price of Dogecoin will reach this target. At the same time, based on historical patterns, Kevin once predicted DOGE price could rise to $3.8 at the peak of this uptrend.
Meanwhile, cryptoanalyst Dima James was also martyred That Dogecoin has always enjoyed bigger gains in each successive bull cycle proves why the meme coin enjoyed over 21,000% price gains this time around.
At the time of writing, Dogecoin is trading at around $0.11, up more than 4% over the past 24 hours, according to Data From Coin Market Cap.
Featured image created with Dall.E, chart from Tradingview.com
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