Dogecoin has seen unprecedented gains in recent weeks. These gains were prompted initially by the anti-wall street bets group on Reddit who turned their focus onto DOGE after attacking stocks that had a history of being shorted.
The digital token was originally created as a joke cryptocurrency by its creator Jackson Palmer but at this moment many are viewing Dogecoin as a legitimate short and long-term investment.
The coins rise was only strengthened further by support from the world’s richest man Elon Musk who has sent out a series of tweets showing his support for the coin as well as Tesla’s SEC report confirming that his company had bought 1.5 billion worth of Bitcoin. This has left many people wondering what the potential for DOGE is and could we ever see it hit $1?.
What Investment Do We Need To See For Dogecoin To Hit $1
When talking about the price of any cryptocurrency it is essential that you are aware of the number of coins in circulation as well as the market cap for that coin. At the time of writing, DOGE has a value of $0.04947 per coin with a market cap of $ 6,318,873,719.
To give some perspective, Bitcoin is currently worth $52,000 per coin with a market cap just shy of 1 trillion. Using basic maths this means we would need to multiply DOGE’s current market cap by 20 to reach $1. Therefore the market cap will need to surpass 140 billion for Doge to reach this goal.
Is this likely?
Well, a few things need to happen for this to be a reality. Firstly the current bull run that crypto as a whole is experiencing needs to continue and every altcoin depends on the strength of Bitcoin for the meantime at least. If Bitcoin reaches between 100-200k during this bull run it is not unreasonable to think DOGE will follow suit and make similar gains also.
For the price to reach $1 though I think it is fair to say that DOGE will rely on maintaining the mainstream coverage it is currently receiving. If Elon Musk continues to push DOGE and the crypto market remains strong we could see a 5 times rise at least in the coming months as the bull run gains momentum.
Celebrities such as Gene Simmons have also given their endorsement to the coin and if more celebrities get on board and keep the flame and momentum alive who knows what might happen.