If Dogecoin were to reach $1, how would that affect your investment strategy?
If you invest $1,000 in Dogecoin today, your portfolio will be worth $13,500 by the time Dogecoin reaches a price of $1. Considering that inflation will be skyrocketing and the market will be in chaos by 2022, this is a good return on investment.
This bear market is expected to last until 2023, according to market analysts. So, the question is raised: Will Dogecoin be worth $1 in 2025?
Dogecoin inflation
Investors frequently overlook the fact that Dogecoin contributes to price inflation. A total of about 5 billion DOGE are created each year as the incentive for miners to verify transactions on the Dogecoin blockchain.
When it comes to Dogecoin, what does inflation actually entail?
As a result, if the goal of a $1 Dogecoin price is to be achieved by 2025, $10 billion more investment is required than at present. Considering that the current value of Dogecoin is $9.7 billion, this is a massive undertaking.
When compared to hyper-deflationary tokens like EverGrow or fixed-supply tokens like Bitcoin, Dogecoin’s inflation is shockingly high.
As of November 2022, EverGrow has burned nearly 1% of its supply, making it the cryptocurrency with the most deflationary effect. EverGrow has a burn tax and an advanced application ecosystem (consider an NFT marketplace and wallet) that contributes all of its earnings to the burn fund.
By capping the total number of EverGrow tokens in circulation, the cryptocurrency is poised to break into the top 50 by the end of 2019.
This means that Dogecoin will need a convincing bullish case if it is to continue drawing major investment and compete for a spot among the top 10 cryptocurrencies.
Dogecoin Popularity
As a meme token, Dogecoin relies on widespread adoption to continue existing.
Dogecoin’s 2.4 million Reddit users make it one of the largest communities on the site, second only to Bitcoin’s 4.8 million r/Bitcoin enthusiasts. Some of the largest retailers in the world accept Dogecoin, and it is frequently mentioned as one of the most popular cryptocurrencies online.
Dogecoin was first accepted by the BitPay network in 2022, and since then hundreds of merchants including Gucci, Tag Heuer, airBaltic, Porsche dealers, real estate companies, Tesla, and many more have started accepting it.
And then there’s Mark Cuban, who’s willing to trade Dallas Mavericks gear for Dogecoin. Elon Musk is another example.
The potential impact of Dogecoin on Twitter is still unclear. However, if Dogecoin is adopted by the social media giant, there is a good chance of another Dogecoin price pump, giving DOGE the market cap and popularity it needs to reach $1.
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