Fundamentals go Out The Window, $1 Dogecoin incoming?

News BTC

The 24-hour performance of Dogecoin sees 80% gains, making it the best performing token in the top 100.

What began as a project to poke fun at an overly serious industry has turned into something quite serious. Based on this week’s rally, calls for a $1 DOGE grow louder. But considering its infinite supply and vague use case, is this even possible?

5 BTC + 300 Free Spins for new players & 15 BTC + 35.000 Free Spins every month, only at mBitcasino. Play Now!

Dogecoin Crashes Top 10 Once More

A strong Dogecoin performance this past week far surpassed any expectation of normality.

DOGE started 2021 priced at $0.005. Although it benefitted from the overspill of the r/wallstreetbets movement around late January, things died down as the movement fizzled out.

How To Get Free Crypto  

Months of sideways action was broken this week as DOGE pushed through $0.10 resistance to rally as high as $0.30 today. Based on the current price, YTD gains come in at a whopping +4,860%.

With that, Dogecoin barges back into the top ten coins, taking eighth place with a valuation of $32.4bn.

Mitsubishi Electric is one of the world’s oldest and most well-known electrical manufacturers. It has a similar market cap to Dogecoin, at $32.6bn.

Source: DOGEUSD on

Fundamentally, Bitcoin is deemed valuable because of its limited supply of 21mn coins. Proponents use this scarcity argument to justify the expectation that Bitcoin will increase in value over time.

In the case of Dogecoin, circulating supply is currently just under 130bn tokens, and crucially there is no fixed supply. The current inflation rate is 5.3bn tokens a year. Taking this into account, is DOGE’s price performance warranted?

Coinbase Banner  

At the time r/wallstreetbets was happening, Dogecoin co-creator Billy Markus commented on his project’s rise to stardom, saying he can hardly believe it has taken off the way it has.

But when it comes to hitting $1, Markus said it’s something he cannot comprehend, let alone answer. In turn, he asked a rhetorical question by saying, “does Dogecoin deserve that?”

More recently, it seems as though he’s warmed to the possibility. He said crypto markets are trying to determine fair valuation, implying Dogecoin’s ascent is simply a symptom of price discovery.

“I think the market has been trying to figure out what the intrinsic value of all cryptocurrency is over the last 12 years. It hasn’t settled on one yet.”

Cuban Backs DOGE

Mark Cuban, the billionaire owner of the Dallas Mavericks, shocked people earlier this month when he announced his team would accept Dogecoin in payment for tickets and merch. Fans responded by buying $122k worth of merch using Dogecoin.

FreeBitcoin Banner  

Even more surprising was Cuban’s statement that he intends to keep the DOGE he earns, adding “so keep buying.” While analysts and those generally rooted in reality dismiss the notion of a $1 DOGE, Cuban strongly believes it will happen.

A $1 DOGE would rank highly in the list of strangest things to have happened in crypto.

Go to Source
Author: Samuel Wan

Recommended Crypto Services, Products and Strategies:

The first thing any crypto investor needs is is a reliable and secure Crypto Wallet.  Whether you’re looking for an online wallet, hardware wallet, desktop or mobile wallet, Crypto Renegade provides you with all the Best Crypto Wallets in each category.

Best Crypto Wallets Banner

When you’re ready to buy more crypto, or exchange your coins for others, Crypto Renegade’s list of the Best Crypto Exchanges has you covered.  The Crypto Exchanges recommended here offer everything from simplicity and convenience to advanced trading platforms and profit sharing. 

Best Crypto Exchanges Banner

If you want to learn more about the methods and tools that can be used to find Great Crypto Projects, then be sure to check out Crypto Renegade’s strategy for How To Find The Best Cryptocurrency.

Crypto Strategy Banner

For those people that don’t have any money to invest right now, or just want to understand the technology a bit more, you’ll definitely want to check out Crypto Renegade’s Free Crypto Strategy and start collecting Free Coins today!

Free Crypto Banner

What do you think about cryptocurrency? Do you have any questions about it? Be sure to leave a comment below.

This site uses Akismet to reduce spam. Learn how your comment data is processed.