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Can Dogecoin Reach 100? Or Even 1? 10? 1,000? | SoFi

After going from about $0.0002 to over $0.70 in a matter of months, many people have wondered “how high will dogecoin go?”

Many first-time crypto investors seem to be curious about doge and other altcoins. Despite the doge price plummeting over 70% to as low as $0.20 before recovering somewhat, dogecoin is still in the top 10 cryptocurrencies by market cap.

Reading: Will dogecoin get as high as bitcoin

But will it always be like this? can dogecoin reach $1? how about $10 or even $100 or more?

There are several reasons why the odds of climbing bulldogs are so much higher. Valuations like $1 or even $10 are theoretically possible. but a price target of $100 or more is not realistic for doge, given the way the currency works.

While it is impossible to predict the future when it comes to the price of Doge or any other investment, we can make a reasonable assumption as to whether Doge will ever reach $100.

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will dogecoin reach $1?

dogocoin reaching $1 is a distinct possibility. this would be less than 50% higher than the all-time high of around $0.70 per doge.

the question “can dogecoin reach $100”, or $1, or whatever price, has to do with two things: doge’s market capitalization and its mining dynamics?

Understanding the size of doge’s market cap relative to its new offering makes it clear how high doge’s price may or may not go. every minute miners are rewarded with 10,000 doges for solving a new block. this equates to 5 billion new doge coins being minted each year.

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By the end of 2030, there will likely be around 180 billion Bulldogs on the road. for the price of doge to reach $1 at that time, the market capitalization of dogecoin would have to be $180 billion.

Doge’s current market capitalization at the time of writing is about $37 billion. there are currently 130.8 billion bulldogs in circulation. To reach a valuation of $1 per coin, Doge’s market capitalization would have to more than triple, increasing by more than $80 billion.

To get to $1, then, there would have to be a lot of money flowing into doge. but it is doable, and billy markus, the creator of the meme cryptocurrency has said that he thinks it is possible.

can dogecoin reach $10?

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For the bulldog price to keep rising, there has to be a lot more money flowing into the bulldog than new coins being mined. because doge has no supply cap, and the block reward is so large (10,000 coins per block, compared to btc’s 6.25 coins per block), it becomes exponentially harder for dogecoin to achieve a higher price. high over time.

The 2021 dogecoin bull market saw its price rise from $0.0002 to $0.70 in a matter of months, it was a unique event. While the exact conditions leading up to any market event can be difficult to pin down, there are some unusual circumstances that came together at the same time, likely giving Doge a big boost.

• I was in the middle of a bitcoin bull market, when btc and other cryptocurrencies were also hitting new all-time highs.

• The 2020 coronavirus pandemic was less than a year old 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. the doge price skyrocketed every time those people tweeted about it.

Celebrity endorsements seemed to have had the most obvious effect on the Doge’s price. Some have accused Doge of running like a giant pump and dump scheme due to his rapid rise and fall.

That said, it’s possible doge will hit $10, at least briefly, sometime in the next decade.

can dogecoin reach $100

It would be almost impossible for dogecoin to reach $100, because there is not enough money in the whole world.

Every dollar the price of dogecoin increases will require an additional $180 billion in 2030. To reach $100 in 2030, then, $18 trillion would have to be invested in dogecoin.

World GDP is estimated to be around 87 trillion dollars. China’s GDP is around $15 trillion, while the US’s GDP is around $15 trillion. uu. it is approximately 21 billion dollars.

In other words, a $100 doge price would require a market capitalization of more than the annual gross domestic product of the entire Chinese nation by 2030. It doesn’t take a market genius to determine that this is simply not going to work. to pass

Even if that kind of money wanted to find a home in doge, it’s unclear whether crypto exchanges could handle that kind of volume or not.

There is one more factor to consider. the total holdings of all bulldog ever mined, as of 2021, are centralized in the hands of just a few crypto wallets.

one wallet contains more than 25% of all doges in existence, while the top 20 wallets contain more than 50% of all doges.

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how high could dogecoin go? the answer is: probably not that high. If for no other reason, people who control a few wallets with billions of coins are likely to make some profit every time the Doge price surges, limiting any gains.

can dogecoin reach $1000

if the answer to the question “can dogecoin reach $100” is no, then there is no way dogecoin can reach $1000?

It would take so much money to make this happen that there really is no scenario in which it could happen.

Much of this is due to the fact that doge is a meme coin with little technical development. traders often use it as a vehicle to transfer value or seek speculative gains, rather than store it.

This represents a stark contrast to bitcoin, which has become more of a primary 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 halves every 4 years, while no such “halving” event ever occurs for dogecoin.

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The dwarfed bitcoin market capitalization at the time of writing is above the $1 trillion mark. Because the supply of BTC is always declining, the market cap and price may continue to rise, absent an unforeseen catastrophe.

The same cannot be said for other types of cryptocurrencies such as ethereum and dogecoin which have no supply limit.

the takeaway

much of the answer to the question “can dogecoin reach $100?” it has to do with a simple dynamic of supply and demand. Due to the way doge mining works, it’s almost impossible for a doge to reach a valuation of $100. That said, $1 per doge could happen, and $10 is a long shot, but not entirely out of the realm of the possibility.

Regardless of your outlook for doge, if you are interested in starting to trade cryptocurrencies, a great way to get started is to open an account with 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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See also: How to choose the best Bitcoin wallet | How Do Bitcoin and Crypto Work? | Get Started with Bitcoin.com

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