Dogecoin’s Price and Market Cap
Dogecoin (DOGE) reached an all-time high price of $0.73 on May 08, 2021, along with a market cap of $88.80 billion. However, the fixed issuance of 5 billion DOGE per year leads to a diminishing inflation rate and affects the coin’s supply inflation model.
The Need for Increased Demand
Despite the diminishing inflation rate, Dogecoin still requires increased demand to meet historical prices with a lower supply. Currently, with a circulating supply of around 140.72 billion DOGE, one Dogecoin would be worth close to $0.63, which is $0.10 (13.7%) less than its all-time high price in US dollars.
Potential for Gains
At the current price of $0.063, Dogecoin provides the potential for investors to gain 900% if the meme coin ever reaches its previous demand. However, the current price is -91.42% lower than the all-time high price.
Uncertain Future
There are no guarantees that DOGE will reach its all-time high market cap of $88.80 billion. Its future depends on further development, news, sentiment, and demand for the Dogecoin ecosystem. However, it’s also possible for the leading meme coin to overcome this historic mark.
Dogecoin and Litecoin Merged Mining
Dogecoin’s inflation comes from the block subsidy paid to miners through its Proof-of-Work (PoW) model. In 2014, Dogecoin and Litecoin adopted a system called ‘merged mining’, where miners mine both LTC and DOGE simultaneously and contribute to the hashrate for both networks. This explains the correlation between their metrics.
Other Market Updates
The post also mentions the potential price of Ethereum if it hits its all-time high market cap, as well as the price for XRP with its past all-time high market cap. Additionally, Avalanche (AVAX) could experience a negative impact in price on August 26 due to the circulation of new tokens.
Hot Take
Dogecoin’s future remains uncertain, but with increased demand and further development, it may have the potential to reach its all-time high market cap. Its merged mining system with Litecoin also contributes to its inflation rate. Investors should carefully consider the risks before investing in Dogecoin.
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