Dogecoin became a sensational breakthrough cryptocurrency in 2021.
It became so popular, and its value and market capital grew to such an extent, it regularly made headline news.
The biggest turning point for Dogecoin came through an apparent endorsement of DOGE during a Saturday Night Live sketch.
Dogecoin was growing steadily before that point, enough to become generally noticed in the crypto space, but after Musk’s cry of ‘going to the moon’ – which is a popular description among cryptocurrency holders that the value will increase considerably.
After the Saturday Night Live segment, other cryptic tweets were made from Elon Musk’s Twitter account, again seemingly endorsing DOGE.
He also famously stated that he would start allowing Dogecoin to be used to buy his Tesla cars.
In 2014, Dogecoin launched with a price of just $0.00030 per coin.
This meant someone who invested just $310 in to Dogecoin would hold 1,000,000 Dogecoin.
The in July 2021 Dogecoin hit an all-time high record price of $0.5811 a coin.
An investment of just $1,000 as late as December 2020 would see a return of $1,937,000 just over 6.5 months later.
That’s a $1,936,000 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 $0.11 a coin.
DOGE will need to 10,000x its value in order to reach a $1000 per coin valuation.
This would mean an increase of 100,000%, which is an incredible climb for the crypto, but considering the original climb to all-time high grew by 19.7m% it perhaps doesn’t look too impossible.
One of the main factors that will determine whether Dogecoin can reach $1,000 will be its current market capital.
Market capital is one of the biggest deciding factors as to whether a cryptocurrency has the potential to 10,000x its current price.
Bitcoin managed to increase its price from a low of $0.09 to a high of $51,000 and Ethereum managed to increase its price from a low of $0.81 to a high of $4,300.
Based on these price increases and its recent growth, it seems feasible that Dogecoin, could increase from $0.10 to $1000.
But really, it is the market capital value of the cryptocurrency that needs to be checked to see possibilities for growth.
Market Capital in Cryptocurrency
The best way to make sense of market capital in cryptocurrencies, or any publicly traded company, is to look the number of coins in circulation and the current market price.
By taking the one number and multiplying it by the other provides a total value of the cryptocurrency based on market value.
It can be shown more simply using the calculation:
Market Price = Number of tokens in circulation * Trading Price
This is the most important value to use to see whether Dogecoin has a chance of reaching $1000 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 Dogecoin has any chance of achieving a $1000 a coin valuation.
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 100,000%.
We can look at this using an example:
A cryptocurrency with 5,000,000 circulating coins may have a trade value of $10 a coin, giving this cryptocurrency a market share of $50,000,000.
Another cryptocurrency with 5 billion circulating coins may have a trade value of $1 a coin, giving this cryptocurrency a market share of $5,000,000,000.
Although the second cryptocurrency has a current price of $10 compared to the first cryptocurrency of $1, it is the market value of the $10 coin cryptocurrency that is worth less.
100 times less value in fact.
It will be relatively easier for the first coin to increase 100 times in value to become worth $1,000 and have a market capital of $5billion than it will for the second coin to increase 100 times in value, become $100 coin, but have a market capital of $500billion!
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
By monitoring the market capital of Dogecoin it will be noticed that its market capital fluctuates daily, hourly, and 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, Dogecoin, 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 $1000 it would need a large 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 $1000 it would need to have a market capital of $98trillion!
This would make Dogecoin more valuable than Apple, Microsoft, Tesla, Amazon, and Meta combined by considerably huge margin!
Why Market Capital is so Important for Dogecoin
It’s not 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 when it comes as an indicator for future potential growth.
As we have seen, a cryptocurrency at $100 maybe a lot more valuable than one with a current price of $1000.
For example, if crypto A has a current trading price of $5 but there are 10 billion coins in circulation it will have a much harder time increasing to $10 compared to the chances crypto B has increasing from $2 to $200 which has a current circulation of 200 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 $50billion, which would make this crypto the fourth most valuable on the market.
Whereas crypto B only has a valuation of $400million.
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 10,000%, or 100x.
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 $1000 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 $1000 in would need a market capital of $98trillion and become by far the biggest cryptocurrency.
Could Dogecoin Reach $1000
It would not be possible for Dogecoin to reach a $1000 valuation.
$98trillion would need to be further invested in to Dogecoin to reach this valuation, which is far higher than Meta, Tesla, Amazon, Microsoft, and Apple and every other tech company 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.