Dogecoin hit the headlines of almost every media and news corporation going during 2021.
Dogecoin had its supports before Elon Musk, on a Saturday Night Live appearance, said how Dogecoin was ‘going to the moon’!
The ‘Dogefather’ as he was subsequently known, tweeted cryptic clues about Dogecoin and also what appeared to be a full endorsement after stating that Tesla would start accepting Dogecoin as payment for its cars.
Single line tweets from Musk would send the price of Dogecoin soaring, and holders of enough Dogecoin were becoming millionaires in such short spaces of time with little to no work involved.
Dogecoin launched way back in 2014 with a price of $0.00030 per coin.
This meant someone who invested just $100 in to Dogecoin would hold 333,333 Dogecoin.
On the 7th July 2021 Dogecoin hit an time record price of $0.5811 a coin.
An investment of just $100 as late as December 2020 would see a return of $193,700 just over 6 months later, that’s a $193,600 profit or 19,700,000% return on investment!
Since then, due to the global recession and bear market of 2022, the price of Dogecoin sits closer to $0.10 a coin.
DOGE will need to 1000x its value in order to reach a $100 per coin valuation.
This would mean an increase of 10,000%, which is a significant climb, but that’s nothing compared to the 19.7m% climb it achieved between 2021 and 2022.
One of the main factors that will determine whether Dogecoin can reach $100 will be its current market capital.
Market capital is one of the biggest deciding factors as to whether a cryptocurrency has the potential to 1,000x its current price.
Now, Ethereum managed to increase its price from a low of $0.81 to a high of $4,300, and Bitcoin managed to increase its price from a low of $0.09 to a high of $51,000.
Based on these price increases and its recent growth, it seems feasible that Dogecoin, could increase from $0.10 to $100.
But ultimately, it’s the market capital that needs to be analyzed to see the true potential.
Market Capital in Cryptocurrency Explained
The easiest way to understand market capital in cryptocurrency terms, which means the value of the crypto, is to look the number of coins in circulation and the current market price.
Multiplying one number by the other provides a total value of the cryptocurrency based on market value.
It can be shown more simply using the calculation:
Number of tokens in circulation * Trading Price = Market Value
This is the most important value to use to see whether Dogecoin has a chance of reaching $100 a coin.
If a coin has a very high market capital, even if it has a low price, it indicates growth of this large volumes is very difficult
On the other hand, a very low market capital, even with a high price, can show the coin at least has the potential for large growth and very high returns.
This is the most important value to use to see whether Sandbox has a chance of reaching $100 a coin.
Whether a cryptocurrency price increase or falls is down to demand, so it needs to be able to find buyers and investors to increase at all, let alone by 10,000%.
We can look at this using an example:
A cryptocurrency with 1,000,000 circulating coins may have a trade value of $20 a coin, giving this cryptocurrency a market share of $20,000,000.
Another cryptocurrency with 3 billion circulating coins may have a trade value of $2 a coin, giving this cryptocurrency a market share of $60,000,000,000.
Although the second cryptocurrency has a current price of $2 compared to the first cryptocurrency of $20, it is the market value of the $20 a coin cryptocurrency that is worth less.
3,000 times less value in fact.
It will be relatively easier for the first coin to increase 100 times in value to become worth $2,000 and have a market capital of $2billion than it will for the second coin to increase 100 times in value, become $200 a coin, but have a market capital of $6trillion!
Market capital is a better indicator of potential future growth when comparing against other cryptocurrencies, than the value of the coin.
Market Capital of Dogecoin
The market capital of Dogecoin, like any cryptocurrency on the market, will have its market capital fluctuate daily, often minute by minute.
Although the number of coins in circulation is normally static day to day, the price can change every minute, and so using our calculation in the last paragraph it will mean the market capital can and will fluctuate.
Unless there is a dramatic market shift in to, or away from, Sandbox the market capital should remain reasonably steady.
At the current time the market capital of Dogecoin is approx. $9.8billion!
This provides Dogecoin a huge market capital and is currently the eighth biggest cryptocurrency.
Even with such a huge market value, it is small in comparison to the two biggest cryptocurrencies, Bitcoin and Ethereum, which have current market capitals of $324billion and $148billion respectively.
Due to its name and being one of the top three most recognized cryptocurrency due to media coverage and Elon Musk, it already has had huge investment in to by celebrities, media names, investment houses and hopeful crypto investors.
This has advantages for Dogecoin, but with some much already invested into Dogecoin to reach $100 it would need a huge surge in investment.
Although it climbed 19.2m% in a short space of time, it grew from a market capital of $40,000 to what is now $9.8billion.
For Dogecoin to reach $100 it would need to have a market capital of $9.8trillion!
This would make Dogecoin more valuable than Apple, Microsoft, Tesla, Amazon, and Meta combined!
Why Market Capital is so Important for Dogecoin
It isn’t possible to take a cryptocurrency price and compare it, in terms of size and value, to another cryptocurrency.
In fact, the price is almost completely irrelevant.
As we have seen, a cryptocurrency at $0.50 maybe a lot more valuable than one with a current price of $50.
For example, if crypto A has a current trading price of $3 but there are 30 billion coins in circulation it will have a much harder time increasing to $4 compared to the chances crypto B has increasing from $3 to $300 which has a current circulation of 100 million coins.
This is because of the amount of money within the overall market and the amount already invested into crypto A.
In the example above crypto A already has a valuation of $90billion, which would make this crypto the third most valuable on the market.
Whereas crypto B only has a valuation of $300million.
If crypto B began to gain traction and started to see substantial gains, the market would shift and potentially sell their holding of crypto A in exchange for crypto B, seeking a higher return.
Just 10% of the amount held of crypto A being sold off and moving into crypto B would see crypto B increase 30,000%, or 300x.
On the other hand, all holders of crypto B could sell and move this amount in to crypto A, and crypto A would increase by just 0.1%.
Therefore, a cryptocurrency with a much smaller market capital has a much better opportunity of increasing significantly if demand increases, and money moves across from other cryptocurrencies.
To understand whether Dogecoin DOGE can reach $100 let’s compare its market capital with other cryptocurrencies.
Dogecoin DOGE Market Cap vs Other Cryptocurrencies
Here is a table showing how Dogecoin cryptocurrency compares to other top coins such as Bitcoin, Ethereum, Solana Dogecoin, Shibu Inu, Polygon MATIC and Decentraland:
For Dogecoin to reach $100 in would need a market capital of $9.8trillion and become by far the biggest cryptocurrency.
Could Dogecoin Reach $100
Likely, it would not be possible for Dogecoin to reach a $100 valuation.
$9.79trillion would need to be further invested in to Dogecoin to reach this valuation, which is far higher than Meta, Tesla, Amazon, Microsoft, and Apple all combined!
The cryptocurrency is still in its infancy, and no one really knows where the market will go, and whether cryptocurrency will start to become the most used global currency of the world.
If it does Bitcoin would be favorite due to its recognition and size, but this could change easily.