YEREVAN (CoinChapter.com) — While some enthusiasts are speculating that Dogecoin (DOGE) could soar by 4,000% in the current bull cycle, the reality paints a far less optimistic picture. Such predictions often overlook key market factors and are driven more by hype than by credible analysis. Here’s why the likelihood of DOGE achieving this massive gain is slim to none.
Elon Musk’s Waning Influence on Price Surges
Dogecoin’s (DOGE) previous meteoric rises were largely fueled by the “Elon Musk factor.” Whenever Musk tweeted about DOGE, the market reacted with enthusiasm, often sending the coin’s price soaring within minutes. However, the novelty of Musk’s involvement has waned, and the market is no longer as responsive to his endorsements. While Musk remains a high-profile supporter of Dogecoin (DOGE), his influence on the coin’s price has diminished over time. As a result, relying on Musk to trigger another massive rally is becoming increasingly unrealistic.
Shiba Inu Coin Rise Erodes DOGE’s Market Dominance: A Shifting Meme Coin Landscape
Since the launch of Shiba Inu (SHIB) coin in May 2021, Dogecoin’s dominance in the cryptocurrency market has been steadily declining. SHIB quickly gained traction, attracting a dedicated community and establishing itself as a formidable rival to DOGE. This shift is evident when comparing DOGE.D (Dogecoin dominance) and SHIB.D (Shiba Inu dominance) in the market. SHIB’s rapid rise has diluted DOGE’s market share, making it harder for Dogecoin to reclaim its former position as the undisputed meme coin king.
The data clearly shows that DOGE’s dominance has been eroded since SHIB entered the scene. With new meme coins emerging and gaining popularity, Dogecoin is no longer the only game in town. This increased competition further reduces the likelihood of DOGE experiencing the kind of explosive growth that some predict.
Dogecoin’s Unrealistic 4,000% Surge Prediction: Market Realities and Current Status
To achieve a 4,000% increase, Dogecoin’s market cap would need to grow by over $500 billion. This would place DOGE’s valuation higher than that of major global corporations like Tencent, Mastercard, and Samsung. Such an astronomical increase in market cap is not just improbable; it borders on the absurd. The current market dynamics simply do not support this level of growth for a meme coin with limited utility and a history of speculative trading.
The sheer scale of this required growth makes the prediction of a 4,000% rally seem more like wishful thinking than a serious analysis. Investors should be wary of such exaggerated claims, which often lack a solid foundation in market realities.
At the time of writing, Dogecoin (DOGE) is trading at $0.1009, marking a 3.40% decline in the past 24 hours. The current market cap stands at $14.7 billion, placing DOGE at the 8th position among cryptocurrencies by market cap. With a circulating supply of over 145.7 billion DOGE and a 24-hour trading volume of $688 million:
While DOGE may see some gains during a bull market, expecting a 4,000% explosion is nothing more than a pipe dream.