I hope that it is now clearer to people who live in the belief that market capitalization is important for determining the value of a cryptocurrency. Example for #Xrpš„š„ how many such comments have I heard that if you want to reach the price of 10 dollars, you need a market cap of half the world's GDP or trillions of trillions. I hope you can see how that is not true. yes, the marlet cap is one of the factors determining the price, however, the most important item is its Circulating Supply.
For example, #BTCā has a fixed maximum supply of 21 million coins, which creates scarcity, a factor that often drives its price higher, especially when demand increases. On the other hand, if a cryptocurrency has an unlimited or high circulating supply with slow demand growth, its price could remain low or even decrease over time.
Its fixed circulating supply and decreasing inflation rate through halvings help create scarcity, which has historically led to price increases as demand grows. Despite a high circulating supply in the market, the rate of inflation is decreasing, making each new Bitcoin more scarce over time.
Dogecoin has a high inflation rate due to unlimited annual supply increases (around 5 billion new coins every year), which puts downward pressure on its price, unless demand is exceptionally high.
So Like XRP releases its tokens every month to curb inflation by increasing its supply, and prevents further price growth. but once those tokens start frying, it'll be merry.
#dogeā” has its own value because it has too strong a sponsor to create hype with it, and I doubt it will drop, especially now that the division has been created, the price will continue to rise. it's just a matter of personal preference, whether you want to trade or own.
