DOGE could go this high if it gains 1% of total crypto market cap

 By market capitalization, Dogecoin (DOGE) is presently ranked tenth out of all cryptocurrencies. Capital, however, is continuously moving between projects and within and outside of the bitcoin market.

DOGE now controls 0.72% of the $1.567 trillion global cryptocurrency market, with a market value of $11.40 billion. In essence, the price of a Dogecoin is $0.0798, and there are 142.825 billion DOGE in circulation. Finbold examined the potential outcomes of a capital inflow on the top memecoin in this particular scenario.

Dogecoin's price fluctuates a lot as money moves to and from other cryptocurrencies due to supply and demand. Taking up approximately 52% of the market capitalization, Bitcoin is valued at close to $820 billion.

Dogecoin's market capitalization would increase by $15.67 billion, to $27.07 billion, if it were to account for just 1% more of the entire cryptocurrency market worth. If the amount of DOGE in circulation doesn't change, this might drive its price up to $0.1895.

Dogecoin's circulating supply is constantly growing, nevertheless, which raises market caps at lower or equivalent prices. This occurs as a result of mining, which creates bonds at a fixed rate of 5 billion DOGE per year, or 3.5% inflation.

When comparing the memecoin capitalization to the overall crypto market cap index, Dogecoin performs better than other cryptocurrencies since it is continuously bringing new money into its ecosystem.

DOGE market cap vs. Total crypto market cap; weekly chart. Source: TradingView

Interestingly, DOGE retraced less after the 2021 peak than the entire market did. Since its launch, Dogecoin has beaten the index by 161%, further solidifying its domination.

Thus, if this pattern holds true, DOGE may experience a fictitious 1% increase in the value of the entire cryptocurrency market. In summary, for the memecoin's prices to reflect the previously described capital inflow, it needs to find a higher demand than its supply inflation.

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