Dogecoin has been trading at $0.20-0.25 for a long time. Although the community expects DOGE to reach $1, the meme coin has so far reached the highest level of $0.73. Almost 5 months have passed since the record breaking date of May 8th. However, one analyst argues that DOGE could reach $10. Here is the DOGE comment from crypto analyst Vladimit Zernov…
How can Dogecoin (DOGE) reach $10?
Cryptocurrency analyst Zernov argues that DOGE could reach $10, but enough money must be put into Dogecoin for the meme coin to rise to $10. The analyst points out DOGE’s current 131.56 billion DOGE in circulation, saying that if DOGE reaches $10, its market value would be approximately $1.32 trillion. It should be noted that the circulating supply of Dogecoin is increasing by 5 billion every year, according to the analyst, which means that some inflation is included in the coin. However, this inflation decreases over time due to the fixed nature of the added supply.
cryptocoin.com As we also reported, the total crypto market cap is $2.17 trillion. The world’s leading cryptocurrency Bitcoin has a market cap of roughly $930 million. Ethereum, the second largest cryptocurrency by market cap, is worth $400 million. Therefore, according to Zernov, a $10 Dogecoin would be worth a combination of Bitcoin and Ethereum; This means that Dogecoin should replace these cryptocurrencies if the overall market cap remains at current levels. At this point, the analyst says, this does not seem reasonable.
Dogecoin’s success will depend on the success of the entire industry
As the adoption of cryptocurrencies increases, the overall crypto market cap also tends to be higher. As cryptocurrencies gradually become major financial assets, the overall crypto market cap will continue to grow. Currently, Dogecoin’s market cap represents around 1.4 percent of the total crypto market cap. According to the analyst, if the current ratio between Dogecoin’s market cap and total crypto market cap holds up over time, the total crypto market cap should reach $94 trillion to push Dogecoin to the $10 level.
For example, the S&P 500 closed August with a market capitalization of $38.2 trillion. Therefore, the total crypto market cap must exceed the market cap of the world’s main stock index. This, too, does not seem convincing, according to the analyst. The analyst says there is also a third alternative option that could push Dogecoin towards the $10 level. In this scenario, Dogecoin’s share of the total crypto market cap grows with the total crypto market cap; This means that while Dogecoin does not need to replace Bitcoin or Ethereum, the total crypto market cap would not have to rise to $94 trillion.
As a result, according to Zernov, Dogecoin could theoretically reach the $10 level. However, the analyst says that while cryptocurrencies would need much broader acceptance to make this possible, Dogecoin would need to increase its crypto market share significantly.
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