The last ten days have been impressive for Dogecoin (DOGE). The coin grew by more than 500% and broke a new record of a constant $ 0.45. Even after a 15% revision, Dogecoin’s market capitalization saw a massive demonstration that surpassed that of established financial institutions. Originally created for a joke, the coin has surpassed giants such as ING, Barclays and Credit Agricole.
Meme coins have been pushed to the next level by many contributions from Elon Musk, CEO of Tesla and SpaceX – and the second richest person alive. Musk is not the only billionaire businessman who supports cryptocurrency.
Whether there is a basis for growth or not, Dallas Maverick owner Mark Cuban has also defended DOGE publicly. The Dallas Mavericks also accept it when they sell their wares.
Is Dogecoin Worth More Than Citigroup or Morgan Stanley?
The Dogecoin community is constantly striving to reach the $ 1 goal. What many do not realize, however, is that the current asset of 129.6 billion will increase by 20% in five years. Thus, $ 1 for 1 DOGE would result in a market capitalization of $ 156 billion.
It is worth noting that there are currently only 92 marketable assets in excess of SEK 156 billion in market capitalization. This shows how outrageous the $ 1 DOGE goal is. Companies with a capitalization of $ 150 billion include Citigroup, Morgan Stanley, Unilever and Shell. If the Dogecoin fanbase somehow manages to push the value above $ 1, it means that they will be below the meme coin.
Assets with a market capitalization of $ 150 billion or more. Source: Infinite Market Cap
It is worth noting that institutional investors can open short positions and invest in falling prices. However, Dogecoin Futures is not available to US traders. It has neither CME nor Baked listing. This means that betting against DOGE is not an option for professional traders.
Inefficiency will decrease as markets evolve
As the cryptocurrency market develops, institution-oriented exchanges will offer altcoin derivatives. By doing so, they will create a more efficient market. At the same time, Dogecoin’s market value compared to more established banks provides distorted data.
While some argue that new rules are needed to avoid these inefficiencies, it is worth remembering that Gamestop shares rose more than 860% in January. Although Gamestop has not been able to generate profit for the past six years, hype from coordinated investment has brought the company’s market capitalization over $ 24 billion. This was higher than the National Bank of Canada.
In theory, no intelligent investor would choose Gamestop over a bank that consistently generates over Canadian $ 2 billion in profits annually. Nevertheless, inefficiencies in the market cause temporary distortions. Similarly, Dogecoin investors can write down the pages of history by hitting the $ 1 level. However, this valuation is unlikely to continue as institutional investors acquire instruments that enable them to play short positions.
