Dogecoin’s price has risen more than 500% in the last ten days, giving it a market cap of $50 billion, surpassing ING, Barclays, and Credit Agricole.
Dogecoin (DOGE) has rallied more than 500% in the last ten days, reaching a new all-time high of $0.45.
Even after a 15% correction, DOGE market capitalization soared above that of well-known financial institutions such as ING, Barclays, and Credit Agricole.
Multiple tweets from Elon Musk, CEO of Tesla and SpaceX — and the world’s second-richest human — propelled the meme-driven cryptocurrency higher. Musk isn’t the only billionaire businessman who believes in bitcoin.
Whether or not there are fundamentals behind the sharp price increase, Mark Cuban, the owner of the Dallas Mavericks, has publicly defended DOGE. It’s also accepted by the Dallas Mavericks for merchandise sales.
Is Dogecoin more valuable than Morgan Stanley or Citigroup?
Although the Dogecoin community is still rooting for the $1 target, many do not realise that the current supply of 129.6 billion will rise by 20% in five years.
As a result, $1 per 1 DOGE would result in a market capitalization of $156 billion, or twice the current value of Binance Coin (BNB).
To put the proposed $1 goal in perspective, there are currently 92 tradable assets with a market capitalization of more than $156 billion.
Citigroup, Morgan Stanley, Unilever, and Shell all have market capitalizations of $150 billion or more, putting them below Dogecoin if its fandom continues to lift its value beyond $1.
It’s worth noting that institutional investors can open short positions in these assets and bet on a price drop, while Dogecoin futures are not available to traders in the United States.
Since it is not traded on the CME or Bakkt, experienced traders are unable to bet against DOGE.
As economies grow, inefficiencies can vanish.
Institutional-focused exchanges will sell altcoin futures as the cryptocurrency industry matures, resulting in a more efficient market. Comparing Dogecoin’s market capitalization to that of more developed banks, on the other hand, yields skewed results.
While some argue that new regulations are needed to prevent inefficiencies, it’s worth remembering that Gamestop‘s stock rose over 860% in January.
Despite the fact that Gamestop has been unable to make a profit for the past six years, the social network-coordinated investing frenzy has pushed its market capitalization beyond $24 billion, surpassing the National Bank of Canada.
In reality, no rational investor will prefer Gamestop over a bank that regularly earns over 2 billion Canadian dollars in income per year. Market inefficiencies, on the other hand, can cause temporary distortions.
Similarly, Dogecoin investors can make history by hitting $1, but as institutional traders gain access to shorting instruments, this value is unlikely to hold.
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