#Dogecoin holders have mixed expectations for the cryptocurrency’s price in this current bull market ($0.34) , especially compared to its peak during the 2021 bull run. In 2021, Dogecoin ($DOGE ) achieved an all-time high (ATH) of $0.73, driven by intense retail interest, celebrity endorsements and high-profile social media discussions. However, since that time, Dogecoin’s circulating supply has steadily grown due to its inflationary model, which introduces approximately 5 billion new DOGE into circulation every year. This increased supply is one factor that may limit Dogecoin's potential price per coin in this bull market, even if overall demand rises.

Understanding Dogecoin’s Inflationary Supply Model

Unlike #Bitcoin ,which has a fixed supply of 21 million coins, Dogecoin has no maximum cap and new DOGE coins are continuously created through mining. Each year, Dogecoin’s supply inflates by roughly 4% as 5 billion new coins are added to the circulating supply. In the time since its ATH in 2021, Dogecoin's circulating supply has grown from approximately 130 billion DOGE to about 145 billion DOGE in 2024. This increase in supply can place downward pressure on price as each coin becomes slightly less scarce over time.

Comparing Potential Market Caps

Dogecoin’s market cap is calculated by multiplying its price by its total circulating supply. In 2021, Dogecoin’s price of $0.73 and a circulating supply of about 130 billion coins gave it a market cap of around $94 billion at its peak, briefly placing it among the top 10 cryptocurrencies by market cap.

If Dogecoin were to reach a similar market cap during this bull run, it would need to overcome the increased supply. For example, with a circulating supply of 145 billion DOGE, Dogecoin would need to reach a price of approximately $0.65 to match its previous $94 billion market cap. To set a new market cap ATH, the price of Dogecoin could theoretically be lower than $0.73 due to the increased supply; however, the demand would have to be substantial to achieve similar or higher market cap levels.

Potential for Lower ATH Despite Higher Market Cap

The rising supply poses a challenge to Dogecoin’s price potential. Even with high demand, the price may not reach the same levels as in 2021 because the larger supply creates more downward pressure. As an illustration, a 2024 price of $0.50 with a circulating supply of 145 billion DOGE would yield a market cap of $72.5 billion, still among the largest in the cryptocurrency space but significantly lower than its 2021 ATH price.

Other Factors Influencing Dogecoin’s Performance

While supply and demand dynamics are key, several other factors could affect Dogecoin’s performance in the current bull market:

1. Institutional Adoption: Increased adoption by businesses and institutions could boost demand, possibly mitigating the effects of higher supply.

2. Market Sentiment: Social media trends and endorsements, especially from figures like #ElonMusk. , have historically impacted Dogecoin’s price. If similar high-profile endorsements occur, they could attract retail investors, helping offset the inflationary supply effects.

3. Competition from Other #Memecoins : The cryptocurrency market has seen the rise of other memecoins since 2021, such as Shiba Inu ($SHIB ), $PEPE , $WIF etc, which could draw attention away from Dogecoin. This increased competition may impact Dogecoin’s demand and, ultimately, its price.

Conclusion

In summary, while Dogecoiners might anticipate a lower ATH in this bull market due to the increased supply, the market cap could still set new highs if demand remains robust. This scenario highlights the contrasting dynamics between price per coin and total market valuation. The potential for a lower ATH compared to 2021 reflects Dogecoin’s inflationary nature and the challenges posed by its increasing supply.