It can be seen that the basic value of Dogecoin is relatively high, but it is just a result of short-term hype.
The kind of valuation needed to get DOGE to $50 or $100 is strictly out of this world given today’s market conditions.
Having other competing cryptocurrencies with better utility cases reduces the value proposition of Dogecoin in the long run.
Another cryptocurrency that has attracted much attention during rallies is the Dogecoin, which started as an internet meme. At the same time, there are several reasons why this asset price will not grow to $50 or $100, analysts point out. The limitations to its future growth are short-lived speculative bubbles, the levels of market capitalization necessary for these prices, and competition from other assets in the world of cryptocurrencies.
Hype Cycles and Their Short-Lived Impact
Dogecoin has, however, been known to be highly volatile, and fluctuates with emotional hype and popular trends, newsworthy trends, and influential figures. Thus these cycles have produced amazing short-term returns on DOGE but with inadequate acceleration necessary in the long-term appreciation. After the publicity, the price reverts to the level because its movements are mostly influenced by manipulations and not by the properties it possesses.
Unprecedented Market Cap Requirements
Even for Dogecoin to move to $50 or $100 it is going to require incredible spikes in its market capitalisations. Currently sitting at $1, Dogecoin’s market cap would overshadow some of the largest firms in the world, if it reached the $50 milestone. To achieve such a feat, there would have to be heightened investment and usage, things that are improbable when put in perspective with the rest of the blockchain projects.
Intense Competition in the Crypto Market
The market for cryptocurrencies is constantly growing and there are hundreds of projects with new ideas and better technology. Still, in its functionality, Dogecoin is relatively simple compared to assets like Ethereum, which hosts smart contracts,s or Bitcoin, which is an asset. This lack of innovation puts it in a tight position where it cannot afford to drastically increase the price of DOGE in the long run.
The post Reasons Why Dogecoin Price May Never Hit $50 or $100 appeared first on Crypto News Land.
