Dogecoin (DOGE) currently ranks 10th among all cryptocurrencies by market cap. However, capital constantly shifts among projects and in or out of the cryptocurrency market itself.
With a market value of $11.40 billion, DOGE holds 0.72% of the entire $1.567 trillion crypto market. Essentially, each Dogecoin is priced at $0.0798, with 142.825 billion DOGE in circulation. In this context, Finbold looked to what would happen to the leading memecoin facing a capital inflow.
Supply and demand frequently drive Dogecoin’s price up or down as funds move to and from other cryptocurrencies. Bitcoin, for instance, captures about 52% of the total market cap, boasting a nearly $820 billion valuation.
DOGE market cap vs. Total crypto market cap; weekly chart. Source: TradingView
Notably, when the whole market retraced after the 2021 peak, DOGE retraced less. Currently, Dogecoin has outperformed the index by 161% since its inception, increasing its dominance.
Therefore, if this trend continues, DOGE might see the hypothetical inflow of 1% from the total crypto market cap. All in all, the memecoin must be able to find an increased demand superior to its supply inflation for its prices to reflect the aforementioned capital inflow.
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