What started as a meme or a joke currency, today Dogecoin is one of the biggest cryptocurrencies out there by market size and value.
The coin was created to serve as an alternative to Bitcoin. The Shiba Inu logo and the name are based on a particular meme and that is the reason the coin has become viral.
Dogecoin differs from Bitcoin in a way that its supply is infinite. There is about 10,000 Dogecoin that is mined every day and there’s no upper limit on the total supply of the coins.
Can Dogecoin Reach $10?
It is a possibility, but extremely unlikely for Dogecoin to Reach $10. The value of Dogecoin depends on two factors – the market cap and the mining dynamics. Understanding the total coins in circulation and the current price, we can estimate the market cap and draw realistic projections.
If the price of Dogecoin has to increase in value, there has to be so much money flowing into it than the number of coins being mined. Dogecoin does not have any limit on supply, and the block reward is massive (10,000 Doge per block).
In the middle of 2020, Dogecoin did increase from $0.0002 to $0.70 but this massive boost in value is more or less a unique event. One, it was in the middle of the bull run to cryptocurrencies in general, and other coins were also reaching their all-time highs.
Due to the pandemic, many of them tried investing in cryptocurrency for the first time and that brought a lot of money into the blockchain. Thirdly, Dogecoin saw quite a lot of endorsements from celebrities and influencers.
If the price of Dogecoin has to reach $10, then its market value of it has to be around $1 trillion. Some have called Dogecoin a pump-and-dump scheme and that is causing its value to rise and fall so rapidly.
However, it may be possible for Dogecoin to reach $10 in the next decade, but it could be for a very brief period and in similar situations like bull runs and endorsements.
For a consistent uptick in the value, Dogecoin has to have a lot of commercial investments in billions of dollars.
The possibility is there, but every minute. It may reach $10 in the next decade for a short span of time. The trends in the upcoming years will answer it with more clarity.
If you are planning to invest in Dogecoin or any other cryptocurrency, study the coin and the team behind it thoroughly.