Dogecoin (DOGE) reached an all-time high price of $0.73 on May 08, 2021, as well as an all-time high market cap of $88.80 billion on the same date. Dogecoin has a fixed issuance of 5 billion DOGE per year, causing the yearly inflation rate to go lower over time.
However, even with a diminishing inflation rate, DOGE is still highly affected by its supply inflation model.
Considering data retrieved by Finbold on August 24, with a current circulating supply of around 140.72 billion DOGE, by press time, one Dogecoin would be worth close to $0.63 — $0.10 (13.7%) less than its price all-time high in US dollars, two years ago.
DOGE 1-day price chart. Source: Finbold
All things considered, there are no guarantees that DOGE will ever reach its all-time high market cap of $88.80 billion, depending entirely on further development, news, sentiment, and demand for the Dogecoin ecosystem. Therefore, it’s also possible that the leading meme coin could overcome this historic mark.
Dogecoin merged mining with Litecoin
Dogecoin’s inflation comes from the block subsidy paid to miners who contribute to the network’s Proof-of-Work (PoW) model, similar to what happens to Bitcoin (BTC) and other PoW cryptocurrencies.
The fixed block subsidy is known as ‘tail emission’, and is also used by the leading privacy currency, Monero (XMR), with a meaningfully lower inflation than both DOGE’s and BTC’s.
However, in 2014, Dogecoin and Litecoin (LTC) adopted a new system called ‘merged mining’, in which miners are mining both LTC and DOGE at the same time, while also contributing to the hashrate for both networks. This explains the correlation with their metrics, according to BitInfoCharts.
Litecoin and Dogecoin hashrates historical chart. Source: BitInfoChart
Moreover, Finbold has also reported what would be the price of Ethereum if ETH hits its all-time high market cap. As well as the price for XRP with past all-time high market cap.
Notably, Avalanche (AVAX) — among the leading layer-1 blockchains for DeFi and Web3 — could suffer a significant negative impact in price on August 26, as 9.54 million AVAX ($101.14 million) of new tokens will be put into circulation on this day.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
