Dogecoin’s Success Will Depend On The Success Of The Whole Industry
Total crypto market capitalization is trending higher as adoption of cryptocurrencies grows. As cryptocurrencies gradually become mainstream financial assets, the total crypto market capitalization will continue to grow.
Currently, the market capitalization of Dogecoin represents about 1.4% of total crypto market capitalization. If the current ratio between Dogecoin’s market cap and total crypto market cap holds over time, the total crypto market cap should reach $94 trillion to push Dogecoin to the $10 level.
To put things in perspective, S&P 500 finished the month of August with a market capitalization of $38.2 trillion. Thus, total crypto market cap should exceed the market cap of the world’s main stock index. This does not look plausible as well.
There is also a third alternative option which can push Dogecoin towards the $10 level. In this scenario, Dogecoin’s share in the total crypto market cap grows together with the total crypto market cap, which means that Dogecoin will not have to replace Bitcoin or Ethereum, while total crypto market cap would not have to grow to $94 trillion.
All in all, Dogecoin can theoretically get to the $10 level. However, cryptocurrencies must gain much wider adoption to make this possible while Dogecoin should materially increase its crypto market share.
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