Dogecoin (DOGE) has been performing well lately, and continues to gain in value by the day. The main factor pushing it up at this point is the recent listing on Robinhood, which has drawn in new investors, who previously thought Dogecoin is a joke. The momentum around Dogecoin has been so heavy that it is now one of the best performing altcoins, in a market that is increasingly bitcoin heavy. So how high can Dogecoin (DOGE) go? Can it rise to the top 10 in market cap rankings?
Well, going by its fundamentals, Dogecoin stands a good chance to make it to the top 10. It is the one of the cryptos that has the potential to gain widespread adoption as a currency. That’s because Dogecoin is inflationary, and its supply increases depending on its usage as a currency. This feature means that Dogecoin (DOGE) is actually more dependable in terms of price stability than most other cryptos including Bitcoin (BTC). That’s because its inflationary nature encourages people to spend, rather than HODL it. The good thing about the inflationary nature of Dogecoin is that it will lead to more adoption for day-to-day use, and in the process lead to an increase in its intrinsic value. As more people use Dogecoin in making online payments, its demand will also grow, further driving it up the market cap rankings.
This is already happening as Dogecoin (DOGE) is one of the most used cryptocurrencies in the market, rivalling coins like Litecoin (LTC) and Bitcoin Cash (BCH). Over time, this usage will push up Dogecoin (DOGE) in the market, to reflect its true ranking in the top 10, among other crypto heavy weights.
Another factor that will drive Dogecoin (DOGE) to the top 10 is the fact that it is mineable. This is quite an important feature for an inflationary coin like Dogecoin. There are many other coins out there that are also inflationary and have similar features to Dogecoin, but they are premined. This means that the people behind them could increase the supply of the coins as they deem fit.
This is risky because it can easily erode investor value, if the people behind such coins, decide to increase supply for whatever reasons. Dogecoin is different because it is mineable and is community driven. Therefore, the inflationary aspect to it is driven purely by market forces, and not by individual actors. As such, Dogecoin can increase in supply without negatively affecting investor value, or creating unexpected volatility in the market. As Charlie Lee recently said, the top 100 ranking is misleading because it is made up of many non-mineable coins. Over time, the market will begin to appreciate the intrinsic value of mineable coins, and Dogecoin will rise up the ranks, and could very easily make it to the top 10.
With such potential that is backed by solid market fundamentals, Dogecoin (DOGE) makes for a great long-term investment. Its future is bright!