Dogecoin’s 24-hour performance is seeing 80% gains, making it the best performing token in the top 100.
What started as a project to fool an overly serious industry has grown into something very serious. Based on this week’s rally, calls for a $ 1 DOGE are getting louder. But given the endless supply and vague use of it, is this possible at all?
$ doge just up to 30 cents, WTF happens !!?!?!
– Lark Davis (@TheCryptoLark) April 16, 2021
Dogecoin crashes into Top 10 again
A strong Dogecoin performance over the past week exceeded all expectations of normalcy.
DOGE started 2021 with a price of $ 0.005. While it took advantage of the overspill of the r / wallstreetbets movement around the end of January, it died out when the move fell away.
Months of sideways action were broken this week as DOGE pushed through $ 0.10 resistance to climb to $ 0.30 today. Based on the current price, the YTD profits top out at a whopping + 4.860%.
With that, Dogecoin bursts back into the top ten coins and takes eighth place with a valuation of $ 32.4 billion.
Mitsubishi Electric is one of the world’s oldest and best-known electrical manufacturers. It has a similar market cap to Dogecoin, which is $ 32.6 billion.
Source: DOGEUSD on TradingView.com
Essentially, Bitcoin is considered valuable due to its limited supply of 21 million coins. Proponents use this scarcity argument to justify the expectation that Bitcoin will increase in value over time.
In the case of Dogecoin, the circulating supply is currently just under 130 billion tokens, and crucially, there is no steady supply. The current inflation rate is 5.3 billion tokens per year. Taking this into account, is DOGE’s price performance justified?
At the time r / wallstreetbets was underway, Dogecoin co-creator Billy Markus commented on his project’s rise to stardom, saying he can hardly believe it went so well.
But when it comes to hitting $ 1, Markus said it’s something he can’t comprehend, let alone answer. In turn, he posed a rhetorical question, saying, “Does Dogecoin deserve that?”
More recently, it seems he’s warm to the possibility. He said crypto markets are trying to set a fair valuation, implying that Dogecoin’s surge is simply a symptom of price discovery.
“I think the market has been trying to find out the intrinsic value of all cryptocurrencies for the past 12 years. It hasn’t come out yet. “
Cuban Backs DOGE
Mark Cuban, the billionaire owner of the Dallas Mavericks, shocked people earlier this month when he announced that his team would accept Dogecoin as payment for tickets and merchandise. Fans responded by purchasing $ 122k worth of merch with Dogecoin.
FYI, the sale of the Mavs in @dogecoin have increased 550pct in the past month. We have now sold over 122,000 Doge’s merchandise! 🚀🚀🚀 We will never ever sell a single Doge. So keep buying @dallasmavsshop https://t.co/li32cdtcED
– Mark Cuban (@mcuban) April 14, 2021
Even more amazing was Cuban’s statement that he intends to keep the DOG he deserves, adding “so keep buying.” While analysts and those generally rooted in reality reject the idea of a $ 1 DOGE, Cuban strongly believes it will happen.
A DOGE of $ 1 would rank high on the list of strangest things that have happened in crypto.