One aspect to Dogecoin (DOGE) that is often cited as a negative side to it coin inflation. The expectation of many has always been that, Dogecoin will never see any significant gains. In fact, the expectation would be that in a bear run, it would one of the worst performers. However, that is not the case. If anything Dogecoin (DOGE) is one of the best performers in the last one year. As a matter of fact, it has outperformed Bitcoin (BTC) and 7 of the top 10 coins in the market.
This is not something that one would expect from a coin with billions entering the supply system every year, right? Well, it is actually possible, and goes to show that supply is not the only measure for the success of a coin. If a coin has strong demand, its price will rise, no matter how many coins are in circulation. Similarly, if a coin has a low supply, but with no real use case, then the number of coins means nothing. That’s why Dogecoin has gained so much, even though it literally has billions of coins coming into circulation every year.
Going forward, the value of Dogecoin (DOGE) is likely to keep growing. That’s because several things about it have changed in the last few weeks. It has gained so much positive publicity that is drawing in more investors. The positive PR around Dogecoin (DOGE) started with the announcement by Coinbase that they would be offering custodial services for Dogecoin (DOGE) and several other cryptos.
This caught the market by surprise and led many to start taking Dogecoin (DOGE) seriously as an investment. This was followed closely by its listing on Robinhood and this upped its status as a crypto investment. Today, there are a lot more people who take Dogecoin (DOGE) seriously as an investment, as compared to most other altcoins.
Besides as its profile grows, so will the number of merchants looking to adopt it. This will serve to increase demand further, and by extension in its value. Amidst all the crypto confusion, and never ending pumps and dumps, Dogecoin (DOGE) could emerge as the one that is adopted as a fiat replacement. It is decentralized, and with no affiliations to a specific group. It’s also easy to use, making it perfect for value transfer in the digital age.
As its strength as a currency begins to take shape, its value in the market will continue to grow. Can it hit $1 in the near-term? Well, with its current trajectory, this is very much possible. The demand for Dogecoin (DOGE) is growing at a faster rate than its rate of inflation and that’s a plus. If anything, it makes its rate of inflation is a positive attribute for this coin, since it acts as a stabilizing factor for the price.