DOGE could go this high if it gains 1% of total crypto market cap

Dogecoin (DOGE) currently ranks 10th among all cryptocurrencies by market cap. However, capital constantly shifts among projects and in or out of the cryptocurrency market itself.

With a market value of $11.40 billion, DOGE holds 0.72% of the entire $1.567 trillion crypto market. Essentially, each Dogecoin is priced at $0.0798, with 142.825 billion DOGE in circulation. In this context, Finbold looked to what would happen to the leading memecoin facing a capital inflow.

Supply and demand frequently drive Dogecoin’s price up or down as funds move to and from other cryptocurrencies. Bitcoin, for instance, captures about 52% of the total market cap, boasting a nearly $820 billion valuation.

If Dogecoin captured just 1% more of the total crypto market value, its market cap would jump by $15.67 billion, reaching $27.07 billion. This could push DOGE’s price to $0.1895, assuming its circulating supply would stay steady.

DOGE market cap vs. the total crypto index

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However, Dogecoin suffers from constant increases in its circulating supply, resulting in higher market caps for lower or similar prices. This happens because mining issues a fixed rate of 5 billion DOGE annually – a 3.5% inflation rate.

Looking exclusively at the memecoin capitalization against the total crypto market cap index, Dogecoin has outperformed other cryptocurrencies, constantly absorbing capital into its ecosystem.

DOGE market cap vs. Total crypto market cap; weekly chart. Source: TradingView

Notably, when the whole market retraced after the 2021 peak, DOGE retraced less. Currently, Dogecoin has outperformed the index by 161% since its inception, increasing its dominance.

Therefore, if this trend continues, DOGE might see the hypothetical inflow of 1% from the total crypto market cap. All in all, the memecoin must be able to find an increased demand superior to its supply inflation for its prices to reflect the aforementioned capital inflow.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

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