There’s no denying that Dogecoin (DOGE) is by far one of the most polarizing crypto projects out there today. On the one hand, many think that the cryptocurrency is largely a joke that has long since passed their greeting. However, there are also people – including many celebrities, business moguls, etc. – who obviously believe that it is a viable financial instrument that will last for a long time, or at least make people believe it.
For example, the NBA franchise owner, the Dallas Mavericks, Mark Cuban, recently stated that he was pretty confident that DOGE would stay here, and even had the potential to hit a $ 1 price tag in the near future. This proclamation comes a few days after the Mavericks started accepting Dogecoin as a form of payment.
He further announced that fans were already behind this final payment route, and by March 7, the Mavs had already sold 20,000 Dogecoin worth of goods – around $ 1,018 at press time – DOGE will definitely hit $ 1 . “
It’s worth noting that DOGE’s list of mainstream celebrity supporters has grown rapidly in recent months, with celebrities like Kiss co-lead singer and bassist Gene Simmons, former adult movie star Mia Khalifa, and American rappers Snoop Dogg and Lil Yachty all show their support for the digital asset.
By far the most prominent supporter of the “meme coin”, however, is Tesla CEO Elon Musk, who has been expressing his support for DOGE on a large scale via his Twitter account for almost a year.
Is the hype here to stay?
DOGE, like any other cryptocurrency, depends on how many people it takes over. Who is supposed to say that the currency cannot become the “future of money” if enough people start supporting it?
On the subject, Kadan Stadelmann, Chief Technology Officer of Komodo – an open source cryptocurrency project and blockchain solutions provider – told Cointelegraph that contrary to what Cubans and some other people believe, it is virtually impossible for DOGE 1 US -Dollars reached until a Bitcoin-level purchase is made -ins are observed in the near future:
“We’re not seeing this right now, even as Mark Cuban and other NBA owners gain acceptance. DOGE certainly already has a use case as a niche currency with enthusiastic fans, and acceptance can certainly grow from here. But in order for it to really be viewed as “future money,” DOGE’s narrative as a meme coin has to erode. “
On a technical level, Stadelmann pointed out that considering the amount of new DOGE minted each day – 10,000 per minute / 14.4 million per day / 5.2 billion per year – DOGE’s price movement is facing some staggering challenges in the near future.
In addition, 14.4 million DOGE / day or 5 billion / year will soon become a tiny drop in the bucket and the price movement of the coin is expected to stabilize as the 14.4 million / day is already just a little today More than ~ 4% increase in supply mean / year of the available circulating supply.
Another way to talk about DOGE, its price speculation, and its use as a legitimate financial instrument, according to Stadelmann, is to look at the amount of US dollars it absorbs each day in order to maintain its current level of price action against Fiat. The token is currently trading at around $ 0.056, which is why, according to Stadelmann, Dogecoin must have $ 806,000 in new fiat in addition to its existing inflow in order to maintain its value.
However, Johnny Lyu, CEO of KuCoin, pointed out to Cointelegraph that he is quite optimistic about the future of Dogecoin as it is already one of the symbols of crypto for many people today: “I won’t be surprised if DOGE is used in hotels , Restaurants or cinemas in the future. “Still, he believes that despite its potential, the token is unlikely to make it into the top 5 anytime soon, adding:
“DOGE’s search interests have overtaken BTC from time to time. Compared to Bitcoin, DOGE works better than futures money for a higher supply, lower price, and faster transactions. It’s tailored for daily payment, and its community culture can easily resonate with the public. “
Not everyone is sold on DOGE
Although DOGE’s recent success leads to an amazing feel-good story, many industry experts aren’t quite buying the hype. For example, Stadelmann pointed out that institutions, compared to other cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), introduce Dogecoin or similar coins far less often: “DOGE has no narrative like ‘digital gold’. and is not considered a store of value. “
With that in mind, it’s worth noting that the price movement of coins like DOGE is largely determined by their respective communities, rather than changes in the value of the underlying technology or use cases.
On the subject, Joel Edgerton, Chief Operating Officer of Cryptocurrency Exchange BitFlyer, told Cointelegraph that coins like DOGE are meant to be more fun than solving real problems and that they have not yet proven their worth: “Any asset can reach a certain price target, if people are willing to pay for it. However, this type of momentum investment with no underlying value is pure speculation. “
Where is DOGE going?
DOGE has gotten a crack lately, as evidenced by the fact that the currency has seen gains of over 2,440% over the past 12 months. Therefore, it is worth looking into the question: What is the DOGE money limit actually?
In Lyu’s opinion, $ 0.20-0.30 is a reasonable range on this bull run. However, he believes DOGE still has a long way to go before it can become more than a kind of short-term cultural phenomenon. For starters, it needs to be regulated – an aspect that will have a huge impact on the future use and overall potential of the currency:
“Compliance is almost a must if it is to be widespread in our daily lives, and it can exist in a niche market without any regulation. Not bad for the future of DOGE in both directions. If the price of Dogecoin climbs to $ 1, its market cap will be $ 100 billion, making it the third largest crypto. I think this is unlikely in the short term. “
