jobless: DOGE must ditch meme status to be valued as money

There is no denying the fact that Dogecoin (DOGE) is by far one of the most polarizing crypto projects on the market today. On the one hand, cryptocurrency is largely thought by many to be a joke that has long exceeded its welcome; However, there are also those people, including many celebrities, business moguls, etc., who evidently believe that it is a viable financial instrument that will last a long time, or at least are making people believe it.

For example, the owner of the NBA franchise, the Dallas Mavericks, Mark Cuban, recently stated that he is fairly certain that DOGE is here to stay and even has the potential to hit a price tag of $ 1 in the near future. This proclamation comes a few days after the Mavericks began accepting Dogecoin as a form of payment.

Additionally, he revealed that fans were already behind this latest payment method, and as of March 7, the Mavs had already sold 20,000 Dogecoin, roughly $ 1,018 at press time, worth of merchandise, adding: Yes We sell another 6,556,000.00 Dogecoin of Mavs merch. , DOGE will definitely hit $ 1.

It's worth mentioning that over the course of the past few months, DOGE's list of prominent supporters has been growing at a dizzying rate, with celebrities like Kiss co-singer and bassist Gene Simmons, former adult film star. Mia Khalifa and American rappers. Snoop Dogg and Lil Yachty show their support for the digital asset.

However, the most prominent sponsor of the meme coin by far is Tesla CEO Elon Musk, who has voiced his support for DOGE via his Twitter account in a big way for nearly a year.

Has the hype come to stay?

DOGE, like any other cryptocurrency, depends on how many people adopt it. As a result, who can really say that currency cannot become the future of money if enough people started supporting it?

On the subject, Kadan Stadelmann, CTO of Komodo, an open source cryptocurrency project and blockchain solutions provider, told Cointelegraph that contrary to what Cuban and some other people may believe, DOGE will come in at $ 1. it is practically impossible until it is bought at the Bitcoin level -ins are attested in the near future:

We are currently not seeing this even with more adoption by Mark Cuban and other NBA owners. DOGE certainly already has a use case as a niche currency with avid fans, and adoption can certainly grow from here. But in order for it to truly be considered 'future money', DOGE's narrative as a meme coin will have to erode.

On a more technical note, Stadelmann noted that when you factor in the number of new DOGEs being minted every day (10,000 per minute / 14.4 million per day / 5.2 billion per year), the price action DOGE faces some heartbreaking challenges. in the short term.

Also 14.4 million DOGE / day or 5 billion / year will soon turn into a small drop in the cube, and the price action of the coin is expected to stabilize, as the 14.4 million / day of today they already represent just a little over a ~ 4% supply increase. / year of your available circulating supply.

Another way to talk about DOGE, its price speculation, and its use as a legitimate financial instrument, according to Stadelmann, is to look at the amount of US dollars it absorbs every day to maintain its current levels of price action against fiat. The token is currently trading at around $ 0.056, requiring Dogecoin to have $ 806,000 of new fiat in addition to its existing entry to maintain its value, according to Stadelmann.

However, Johnny Lyu, CEO of KuCoin, pointed out to Cointelegraph that he is quite optimistic about the future of Dogecoin as it is already one of the symbols of cryptocurrencies for many people today: I won't be surprised to see DOGE being used in hotels. , restaurants or cinemas in the future. That said, he believes that despite its potential, the token is unlikely to make it into the top five anytime soon, adding:

DOGE's search interests have overtaken BTC from time to time. Compared to Bitcoin, DOGE is better suited to be futures money for higher supply, lower price, and faster transactions. It is designed for daily pay and its community culture can easily resonate with the general public.

Not everyone is sold on DOGE

While DOGE's recent success makes for an incredible feel-good story, many industry experts don't entirely agree with the hype. For example, Stadelmann noted that compared to other cryptocurrencies such as Bitcoin (BTC) and Ether (ETH), institutions are much less likely to adopt Dogecoin or other similar currencies: DOGE does not have a narrative like digital gold and is not considered a reserve. of value.

In this regard, it is worth mentioning that the price action of coins like DOGE is largely driven by their respective communities rather than by changes in the value of their underlying technology or use cases.

On the subject, Joel Edgerton, COO of cryptocurrency exchange bitFlyer, told Cointelegraph that coins like DOGE are meant to be fun rather than solving real-life problems and that it has yet to prove its worth - any asset can reach a certain target price if people are willing to pay for it. However, that kind of dynamic investment, with no underlying value, is pure speculation.

Where is DOGE headed?

DOGE has been on a roll recently, as evidenced by the fact that over the course of the last 12 months or so, the coin has seen gains of over 2,440%. As a result, the question is worth delving deeper into: Where is DOGE's monetary ceiling really located?

In Lyu's opinion, $ 0.20– $ 0.30 is a reasonable range in this bull run; However, he believes that there is still a long way to go for DOGE to become more than just a short-term cultural phenomenon of sorts. It will have to be regulated to begin with, an aspect that will have a major impact on the future use and overall potential of the coin.