Dogecoin (DOGE) got here into the highlight in the course of the 2021 bull market after mounting a powerful rally fueled by billionaire Elon Musk posting concerning the coin on his Twitter account. Nonetheless, the meme coin has since misplaced most of these positive aspects because the bear market has raged on. With Dogecoin sitting about 90% under its Might 2021 all-time excessive, the query is now whether or not DOGE will ever attain $0.7 once more.
Can Dogecoin Reclaim $0.7?
Dogecoin continues to be holding regular as one of many largest cryptocurrencies within the house however a worrying reality concerning the cryptocurrency is that it has an infinite provide. In contrast to Bitcoin whose provide is capped at 21 million or Ethereum which has enabled a burn mechanism to maintain provide down, there’s nothing maintaining the provision of the meme coin down.
To place this in perspective, the supply of DOGE is currently increasing at a rate of around 5 billion coins each year. This interprets to a 4% annual inflation charge, which is sort of excessive particularly when there isn’t any method to scale back the provision.
Nonetheless, the meme coin is one that’s purely pushed by hype so it tends to rely much less on its tokenomics for its worth actions and extra on how the group is feeling about it. An instance of that is Shiba Inu whose complete provide is within the trillions and but noticed great success within the 2021 bull market as nicely.
DOGE trending at $0.0757 | Supply: DOGEUSD on TradingView.com
The potential for DOGE reclaiming $0.7 stays excessive on condition that it nonetheless enjoys assist from the likes of Elon Musk even in the course of the bear market. It has additionally just lately seen support from Burger King, one of many largest fast-food chains on the earth, pushing its worth larger.
DOGE Worth Efficiency So Far
Dogecoin’s worth thus far has correlated with the efficiency of the overall crypto market. Most cash are down considerably from their 2021 all-time excessive values and DOGE is not any exception. However extra importantly, the meme coin continues to observe the worth traits of Bitcoin. Which means that when bitcoin inevitably rallies once more, then DOGE is prone to observe go well with.
By itself, the meme coin has seen a rollercoaster of a month in March. Mid-March got here with some positive aspects for the digital asset, however the downtrend over the past two weeks has worn out most of these positive aspects, leaving Dogecoin within the crimson as soon as extra.
On the time of writing, DOGE is sitting at a worth of $0.0843, down 0.97% and seeing 0.88% losses within the final week. Though DOGE is doing higher than others, it’s nonetheless one of many worst performers of the big caps over the past week.