During the bull market of 2021, Dogecoin achieved a significant market cap of $80 billion, setting a record as the leading meme cryptocurrency. However, if Dogecoin were to reach this market cap again, it would still fall short of its previous peak price of $0.73.
Understanding Dogecoin’s $80 Billion Market Cap
John Carter, a member of the Dogecoin community, emphasized in an X post that achieving an $80 billion market cap does not equate to a new all-time high (ATH) for Dogecoin due to its inflationary characteristics. The coin has a limitless supply, which means new DOGE tokens will continually be added to the market.
This ongoing issuance of coins dilutes Dogecoin’s price unless it grows faster than the creation of new tokens. Since the 2021 bull run, when it last reached its ATH, the supply of DOGE has increased significantly, reinforcing the fact that an $80 billion market cap now would not signify a new ATH. Market cap is computed by multiplying the coin’s price by the number of tokens available. When Dogecoin hit the $80 billion cap in 2021, there were fewer coins in circulation compared to today, when the supply has risen due to mining activities.
Dogecoin lacks any method to curb inflation, which would help maintain its value. According to CoinMarketCap, the current circulating supply of DOGE stands at 146.37 billion. Therefore, a market cap of $80 billion would result in a price of $0.5 per DOGE, as the market cap is divided by the number of circulating coins.
Future Price Outlook
Although reaching an $80 billion market cap does not signify a new price peak for Dogecoin, there are still optimistic forecasts from various crypto analysts regarding the potential for the meme coin to exceed its former ATH in this bull run. Kevin Capital, for instance, has predicted that DOGE could rise to $1, which would represent a new ATH for the cryptocurrency.
Other analysts, such as Crypto Kaleo and Master Kenobi, have also supported the idea that Dogecoin could reach this goal. Additionally, based on historical trends, Kevin has previously predicted a possible rise to as much as $3.8 during the peak of the current bull cycle.
Crypto analyst Dima James mentioned that Dogecoin tends to experience greater gains with each successive bull market, suggesting the potential for a price increase of over 21,000% this time around.
As of this writing, Dogecoin is trading at approximately $0.11, experiencing an uptick of over 4% in the past 24 hours, according to CoinMarketCap.
