By
Steve Muchoki
April 24th, 2024
Dogecoin market cap has overtaken that of well-established companies like Barclays, Credit Agricole and ING despite the 15% pullback.
Dogecoin (DOGE), a meme-based cryptocurrency has after grabbing headlines with a $30 billion market cap nearly double that value with a current market cap of $50 billion. The price of Dogecoin is currently around $0.4.
This incredible performance has placed the digital asset way above the likes of Bitcoin Cash, Tether, Cardano, Polkadot, and Litecoin to seal its spot as the fifth-largest cryptocurrency in the world. It only ranks behind the most popular assets which are Bitcoin, Ethereum, Binance Coin, and XRP. In the last seven days, the price of Dogecoin has moved from $0.07 trading price in a 440% surge, and 500% in the last 10 days to record a current price of $0.40.
As it stands, its market cap has overtaken that of well-established companies like Barclays Plc (LON: BARC), Credit Agricole SA (EPA: ACA), and ING Groep NV (NYSE: ING), despite the 15% pullback. It is important to understand that the price was partly influenced by the public announcement of Dogecoin as a payment method for Dallas Mavericks merchandise with the Owner, Mark Cuban as a strong believer of the asset. Elon Musk, the CEO of Tesla Inc (NASDAQ: TSLA), and SpaceX known for pushing the price of Bitcoin with a Twitter post also made a similar tweet on Dogecoin, which is said to be a contributing factor for its incredible performance.
Can the Price of Dogecoin Proceed to $1?
Dogecoin was earlier ignored by many investors because of its huge supply. It became appealing again after Cuban, and Musk showed their support for the coin. It is more likely that many investors joined the train when the price was around $0.45, hoping that the price of Dogecoin will hit $1.
It is worth noting that the $129 billion supply of the digital asset is subject to a 20% increase in 5 years. This means the market capitalization will have to rise from the current $50 billion to hit $156 billion for the asset to trade at a dollar. This is a double of the value of Binance Coin, and $6 billion more than the value of Unilever PLC (LON: ULVR), Royal Dutch Shell PLC, (AMS: RDSA), Morgan Stanley (NYSE: MS), and Citigroup Inc (NYSE: C).
Though Dogecoin going ahead of these heavyweight companies sounds outrageous, it is important to know that Ethereum is valued at $249 billion, meaning cryptocurrency can hit that height.
Some experts believe that the growth of the market cap of Dogecoin above some well-established institutions provides a distorted figure in their comparison. A typical example is GameStop Corp (NYSE: GME) which saw its shares rising by 860% in January to send its market cap of above $24 billion higher than that of the National Bank of Canada.
The reason is simple, Gamestop though had a huge rise in value has not generated a profit in the last six years, and yet the bank with the less market cap has consistently made a profit of 2 billion Canadian dollars annually.