The last 10 days have been impressive for Dogecoin (DOGE), which rose more than 500% to a new full time of $ 0.45. Even after the 15% correction, Dogecoin’s market value has surpassed well-established financial institutions such as ING, Barclays and Credit Agricole.
The meme-driven cryptocurrency was chosen through many tweets from Elon Musk, CEO of Tesla and SpaceX, the second richest man in the world. Musk is not the only billionaire business that supports cryptocurrency.
Whether or not there is a basis behind the sky-high prices, Dallas Mavericks owner Mark Cuban has the public defense of DOGE. Even the Dallas Mavericks accept them for sale.
Is Dogecoin Worth More Than Citigroup or Morgan Stanley?
While the Dogecoin community consistently supports the $ 1 target, not many people are aware that the current $ 129.6 billion dollar supply will grow 20% in five years. Thus, $ 1 for 1 DOGE will result in a market value of $ 156 billion dollars, which is twice the current value of Binance Coin (BNB).
To show how awful the proposed $ 1 target is, there are currently 92 marketable assets exceeding the market value of $ 156 billion. Citigroup, Morgan Stanley, Unilever and Shell are companies with a market value of $ 150 billion, so they would be smaller than Dogecoin if fans somehow manage to push the value upwards of $ 1.
Assets with a market value of $ 150 billion and over. Source: Infinite market value
It is worth noting that institutional investors can short sell and bet on a decline in these assets, while Dogecoin futures are not available to US traders. It is not listed on CME or Bakkt, which means that games against DOGE are not suitable for professional traders.
Inefficiency will disappear as markets evolve
As the cryptocurrency market grows, institutional exchanges will introduce altcoin derivatives, creating a more efficient marketplace. Meanwhile, a comparison of Dogecoin’s market value to the more well-known banks gives skewed figures.
While some argue that new rules are needed to avoid these shortcomings, it must be remembered that Gamestop shares rose more than 860% in January.
Although Gamestop has not been able to make money for the past six years, the enormous madness of coordinated investment through social media has pushed the market value to over $ 24 billion, higher than the Canadian National Bank.
In theory, no sane investor would deliberately choose Gamestop over a bank that consistently earns more than C $ 2 billion annually. However, market inefficiencies will create immediate distortions.
Similarly, Dogecoin investors can make history by hitting $ 1, but this estimate is unlikely to be correct because institutional traders have short-selling instruments.