Other than Ethereum (ETH) and Bitcoin (BTC), Dogecoin (DOGE) is arguably the most famous cryptocurrency on the market.
It certainly has become the most famous meme coin out there in crypto world.
To think Dogecoin started as a joke and ended up having an $8 billion market cap and having Elon Musk, one of the smartest and richest men in the world, supporting it.
Cryptocurrency doesn’t get any crazier than the Dogecoin story.
Shibu Inu (SHIB) came close, but it really was a carbon copycat of the Dogecoin story.
The fact that Tesla cars could be bought with Dogecoin, and it was reported that Elon Musk have invested millions of dollars into the meme coin, it showed there was a true market for millions of cryptocurrency coin investors who were anxious to join in but felt they had missed the Bitcoin and Ethereum boat.
With a starting price of $0.00030 a small number of investors bought in to Dogecoin early.
Almost all would have started cashing in as soon as DOGE started to climb, but for someone brave enough to hold on to a $100 investment in Dogecoin in 2020 would have meant a return of $193,700 just six short months later.
A $1,600 investment in Dogecoin in 2020 would have meant a return of $3million in 2021!
Questions have been asked as to whether Dogecoin could ever reach $10,000 a coin, which would require DOGE to 100,000x in value.
Now, the previous record of increase set by DOGE was a staggering 19,700,000% return on investment.
Looking at this colossal amount, it would seem quite reasonable that DOGE could increase by another one million percent, or 100,000 its value?
To understand whether Dogecoin has any chance of reaching $10,000 a coin, we need to look at its current market capital.
Market Capital in Cryptocurrency
Investors use the market capital of a cryptocurrency as one of the basis and factors for investing.
Essentially the market capital gives a valuation of the cryptocurrency, which can be compared to other cryptocurrencies on the market.
It can be shown more simply using the calculation:
Market Capital = Number of tokens in circulation * Trading Price
Although there are other metrics, this would be the most important one to use to see whether Dogecoin has a chance of reaching $10,000 a coin.
A high market capital and the coin may have difficult gaining more ground or attention.
A low market capital but a growing price with lots of buzz could be in a great place to grow significantly.
The price itself though is no indicator at all.
A crypto could have a price of $0.000000030 or $3,000 a coin, but this gives an investor no clue as to whether it would be prudent to buy in for the potential of a huge return.
We can look at this using an example:
A cryptocurrency with 10,000,000 circulating coins may have a trade value of $5 a coin, giving this cryptocurrency a market share of $50,000,000.
Another cryptocurrency with 8 billion circulating coins may have a trade value of $2 a coin, giving this cryptocurrency a market share of $16,000,000,000.
Although the second cryptocurrency has a current price of $2 compared to the first cryptocurrency of $5, it is the market value of the $5 coin cryptocurrency that is worth less.
300 times less value in fact.
It will be relatively easier for the first coin to increase 100 times in value to become worth $500 and have a market capital of $5billion than it will for the second coin to increase 100 times in value, become $200 coin, but have a market capital of $1.6trillion! 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
Anyone who follows cryptocurrency or has looked at a trading chart, like the one below, will see that cryptocurrencies are traded twenty-four hours a day, seven days a week and three hundred and sixty-five days a year.
Just like Forex (foreign currency exchange trading) it never stops or sleeps.
It means no matter where you are in the world, whatever time-zone or whether it is in the middle or the day or night it is possible to buy and sell cryptocurrency and see the trading values at any point in time.
It can be fast, fun, and exhilarating.
The trading charts provide an indication as to the market capital of every cryptocurrency.
As we have seen it is the market capital that gives a good indication to future potential. It is never a guarantee of a swing in either way, but it shows potential.
At the current time the market capital of Dogecoin is approx. $9.9billion!
This makes Dogecoin the eighth most valuable cryptocurrency in the world.
The largest cryptocurrency is currently Bitcoin with a market capital of $518 billion.
To have a $9.9 billion market capital it means many crypto investors have already bought in to the project.
It isn’t in its infancy, where catching the wave at the right time can see incredible overnight profits.
For Dogecoin to reach $10,000 a coin would mean it would have to have a market capital of $990 trillion!
It is worth noting that according to MarketWatch, the amount of money owned by everyone in the world right now is $215 trillion.
So, if every single person in the entire world put every dollar and dime they had in to Dogecoin, it would mean DOGE would be at around $2,500 a coin and still be nowhere close to $10,000 a coin goal. There isn’t the amount of money in the world needed for Dogecoin to reach $10,000.
Why Market Capital is so Important for Dogecoin
Market Capital gives a valuation of the business, or in this case crypto.
It indicates how much money is already within this market.
Let’s say that crypto has approx. $1.3 trillion invested into it.
In the early days until around 2018 crypto was something only techie people or serious investors were in to.
Buying crypto wasn’t easy and required a lot of technical knowledge to get started.
It still isn’t easy for an average investor to get to grips with, but cryptocurrency is becoming more mainstream every day.
With so much already invested it means that for an established crypto to grow by large volumes it either needs a shift from larger cryptos into it, or current investors putting in a lot more.
If, for example, suddenly, a large country decided to make Dogecoin its main fiat currency of choice, then Dogecoin would surge dramatically.
Or perhaps there could be a huge brand that has decided to only accept Dogecoin as a currency of payment, then the newsworthy attraction would see many new people buying in, plus a shift from other crypto into DOGE.
Unfortunately, neither of these two scenarios are looking likely.
With Dogecoin being worth almost $10 billion already, it would mean just a 60x increase in value would put it above Bitcoin as the most valuable cryptocurrency on the planet.
This is already very unlikely failing a dramatic shift, so if 60x is not looking likely then 100,000x is literally impossible.
Comparing the Market Capital of Dogecoin
Nobody can take a cryptocurrency price and compare it to another cryptocurrency to get any reasonable or meaningful statistic.
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 $2 maybe a lot more valuable than one with a current price of $5.
For example, if crypto A has a current trading price of $10 but there are 5 billion coins in circulation it will have a much harder time increasing to $20 compared to the chances crypto B has increasing from $1 to $100 which has a current circulation of 150 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 $150million.
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 why Dogecoin DOGE can’t reach $10000 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:
|Polygon MATIC||$8.5 billion|
|Shibu Inu||$5 billion|
|The Sandbox||$958 million|
|Decentraland (MANA)||$879 million|
For Dogecoin to reach $10000 in would need a market capital of around $800trillion and become by far the biggest cryptocurrency, in fact biggest institution, in the world!
Could Dogecoin Reach $10000
It would be impossible for Dogecoin to reach a $10000 a coin valuation.
More money in the world would be needed in order for Dogecoin to reach this type of valuation.