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In the 2021 bull run, Dogecoin hitting an $80 billion market cap marked a new all-time high (ATH) for the foremost meme coin. This time would be different if the meme coin reached this market cap, as its price would still be below its current ATH of $0.73.
Why Dogecoin Reaching An $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 won’t mark a new ATH for the meme coin primarily due to its inflationary status. The meme coin has an infinite supply, meaning that more DOGE tokens will keep entering into circulation.
This means that Dogecoin’s price will continue to be diluted as long as it doesn’t outpace the rate at which new coins are issued. In this instance, DOGE’s price has already been diluted, considering that the meme coin hasn’t hit a new ATH since the 2021 bull run. Meanwhile, more coins have been issued since then.
This explains why DOGE’s $80 billion market cap won’t mark a new all-time high. Market cap is usually calculated by multiplying the coin’s price by the total number of coins in circulation. When Dogecoin hit an $80 billion market cap in 2021, there were fewer coins in circulation compared to now, when more coins have been issued through mining.
Moreover, Dogecoin has no deflationary mechanism that could have helped reduce its inflationary status. CoinMarketCap data shows that DOGE has a circulating supply of 146.37 billion DOGE. In line with this, an $80 billion market cap for the meme coin would put the Dogecoin price at $0.5 since the market cap is divided by the circulating supply to get the price.
From A Different Perspective
Although an $80 billion market cap won’t mark a new ATH for the Dogecoin price, the foremost meme coin still looks likely to surpass its current ATH based on price predictions made by several crypto analysts for this bull run. One of these analysts is Kevin Capital, who recently predicted that DOGE could reach $1, which would mark a new ATH for the meme coin.
Other crypto analysts, including Crypto Kaleo and Master Kenobi, have also agreed that the Dogecoin price will reach this target. Meanwhile, based on historical patterns, Kevin once predicted that DOGE could rise to as high as $3.8 at the peak of this bull run.
Meanwhile, crypto analyst Dima James also cited that Dogecoin has always enjoyed larger gains in every successive bull cycle to prove why the meme coin could enjoy a price gain of over 21,000% this time.
At the time of writing, Dogecoin is trading at around $0.11, up over 4% in the last 24 hours, according to data from CoinMarketCap.
Featured image created with Dall.E, chart from Tradingview.com
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