{"id":22461,"date":"2024-11-21T17:09:16","date_gmt":"2024-11-21T17:09:16","guid":{"rendered":"https:\/\/mycryptomania.com\/?p=22461"},"modified":"2024-11-21T17:09:16","modified_gmt":"2024-11-21T17:09:16","slug":"why-dogecoin-could-go-to-1-but-not-pepe","status":"publish","type":"post","link":"https:\/\/mycryptomania.com\/?p=22461","title":{"rendered":"Why Dogecoin Could Go to 1$ but not PEPE?"},"content":{"rendered":"

Since the beginning of the uptrend a lot of newbies joined the crypto verse. Naturally, we saw a lot of fresh speculation: \u201cWhy put 100$ into Dogecoin <\/a>to take it out when it goes to 1$? Better put in PEPE <\/a>to make more money.\u201d With that mindset, your money is ripe for the taking because you don\u2019t understand market capitalization, so let\u2019s understand it in this\u00a0article.<\/p>\n

What is Market Capitalization AKA MarketCap AKA\u00a0MC<\/h3>\n

Many people think that a coin\u2019s price increases magically when inflows happen. In reality, people buy an asset and when the demand outgrows the supply, its price appreciates. This is reflected in its market capitalization, which we will call MC from here\u00a0on.<\/p>\n

MC is the number of coins in circulation multiplied by its price. This is the very basic way of knowing whether an asset is overvalued or undervalued.<\/p>\n

If I want to know how much my investment in Dogecoin can grow, I need to know its current MC to speculate. So I can multiply 0.38$ in 146 Billion coins to get $56B. This is the MC of Dogecoin.<\/p>\n

Why is the MC\u00a0useful?<\/h3>\n

Investors in the crypto verse use the MC to evaluate coins. This is how they can say that a project is overvalued or undervalued. It is also how they calculate how much room the project has to grow. If we look at the MC of Dogecoin, we notice that it is 7th largest project in the space. For it to reach 1$, it needs inflows of 2.6 times its size to reach 1$, which is roughly\u00a0$90B.<\/p>\n

From this, we can conclude that there isn\u2019t much room for Dogecoin to grow. However, it is realistic that during a crazy Altseason in 2025, Dogecoin could at least tap or touch the 1$\u00a0briefly.<\/p>\n

On the other hand if we check a project like Bitcoin<\/a>, its MC is $1.93T. This means that the same $90B inflows into Bitcoin would translate into a price appreciation of around 10%. On Ethereum<\/a>, $90B of inflows would appreciate the price by roughly 25\u201330% and on Solana <\/a>would cause almost 85\u201390% price increase.<\/p>\n

The effect on the price differs because of the law of diminishing returns. The larger the MC, the harder the price to move. This is why the S&P500 barely moves daily while Bitcoin could swing 5\u201310%\u00a0daily.<\/p>\n

What about PEPE? Why Can\u2019t it Reach\u00a01$?<\/h3>\n

PEPE has over 420 Trillion coins. The current MC is $8B. We know this when we multiply the number of coins in circulation by the current price. This means that for PEPE to reach 1$, it needs to have a MC of $420T. The entire MC of the crypto market, which you can get on Tradingview <\/a>by typing TOTAL <\/a>in the search bar. This calculates the MC of every crypto asset out there and adds them together.<\/p>\n

From this, we conclude that it is unrealistic for PEPE to reach 1$ as its MC would need to be larger than that of the entire market by almost 200 times. This is why investors rely on MC to aim for realistic targets.<\/p>\n

Many new investors get fooled by PEPE\u2019s price being so low. They think they will be reach because they own a lot of coins. The truth is, it\u2019s all a numbers game. You will be as rich as the inflows that go into the asset to increase its price. You will lose your money if they don\u2019t match the outflows.<\/p>\n

What\u2019s a Realistic Target for\u00a0PEPE?<\/h3>\n

How high can PEPE go then? First of all, it\u2019s anybody\u2019s guess. No one can really know how high a certain cryptocurrency or asset can go. But we can make educated guesses. Currently, the MC of PEPE is $8B. If the coin can remain under the spotlight long enough, it can flip SHIBA. SHIBA\u2019s MC currently is $14B, but it can increase in the upcoming weeks. So, we would expect the inflows on PEPE to be higher than SHIBA so that it can eventually catchup. Maybe this could translate to a MC of $16\u201320B for PEPE, meaning a price increase of at least 100% from\u00a0here.<\/p>\n

Can PEPE go much higher? Yes, it can. But you have to be realistic in your expectations. So far, one of the hardest things in crypto is to try to put a fair value on a meme coin. This is why we can never know how high these coins can run. The best thing to do is to constantly take profits whenever it goes high and get out when you feel it\u2019s extremely overvalued.<\/p>\n

I hope you learned something useful today. If you did, don\u2019t forget to give me a follow + join my TG group<\/a> for further updates on all things\u00a0crypto.<\/p>\n

Why Dogecoin Could Go to 1$ but not PEPE?<\/a> was originally published in Coinmonks<\/a> on Medium, where people are continuing the conversation by highlighting and responding to this story.<\/p>","protected":false},"excerpt":{"rendered":"

Since the beginning of the uptrend a lot of newbies joined the crypto verse. Naturally, we saw a lot of fresh speculation: \u201cWhy put 100$ into Dogecoin to take it out when it goes to 1$? Better put in PEPE to make more money.\u201d With that mindset, your money is ripe for the taking because […]<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-22461","post","type-post","status-publish","format-standard","hentry","category-interesting"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/22461"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22461"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/22461\/revisions"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22461"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22461"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22461"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}