What would Dogecoin reaching $1 mean for your portfolio?
If you buy $1,000 worth of Dogecoin today your portfolio would grow to $13,500 by the time Dogecoin reaches $1 price. It’s a decent return on investment considering sky-high inflation and market turmoil as welcome to the end of 2022.
Analysts predict the bear market will continue through 2023. Which asks the question: can Dogecoin reach $1 by 2025?
First, the bad news – Dogecoin inflation
Investors often forget that Dogecoin is inflationary. Some 5 billion DOGE enter supply each year, as it’s the reward to miners for validating transactions on the Dogecoin blockchain.
What does Dogecoin inflation mean in practice?
It means that by 2025 Dogecoin will need $10 billion more investment than at present to reach a $1 price. Given the Dogecoin market cap is currently $9.7 billion, it’s a significant task at hand.
Dogecoin inflation compares drastically to a fixed supply token like Bitcoin, or a hyper-deflationary token like EverGrow.
EverGrow is the leading deflationary token in crypto right now, as it burned almost 1% of its supply just in November 2022. EverGrow has a burn tax as well as an innovative ecosystem of applications (think NFT marketplace and wallet) which send 100% of their revenue towards burning EverGrow.
The EverGrow token is on track to enter the crypto top 50 next year simply by reducing its supply. Read more about the tokenomics here: https://evergrowegc.com/
What this means for Dogecoin is it will need a strong bullish case to keep on attracting significant investment and remaining a top 10 player in the cryptocurrency industry.
Now, the good news – Dogecoin popularity
Dogecoin is a meme token, and memes need popularity to survive.
Thankfully, the Dogecoin community is currently one of the biggest on Reddit with 2.4 million followers, only bettered by r/Bitcoin with 4.8 million. Dogecoin is consistently one of the most talked about cryptocurrencies on the Internet, and it has some big merchants backing it.
In 2022, companies like Gucci, Tag Heuer, airBaltic, Porsche dealers, real estate companies, Tesla and hundreds more merchants using BitPay began accepting Dogecoin.
Then, of course, there’s Mark Cuban accepting Dogecoin for Dallas Mavericks merchandise. And there’s Elon Musk.
It’s still not clear what role Dogecoin could play on Twitter. But if Dogecoin does get accepted on the social media giant, there’s every chance for another Dogecoin price pump that gives it the market cap and popularity DOGE needs to reach $1.