A crypto analyst using the name Master Kenobi on X (previously Twitter) believes that Dogecoin, the original meme coin, is set to surpass Bitcoin in this market cycle. He argues that Dogecoin will likely outshine Bitcoin during this ongoing market cycle due to the follower effect, where Bitcoin paves the way for Dogecoin’s growth.
Bitcoin has dominated investments and new capital entering the crypto space since the start of the year, primarily due to increased institutional investments. As a result, Bitcoin has outperformed most alternative cryptocurrencies, with Ethereum, considered the top altcoin, facing challenges to keep pace.
Dogecoin Expected to Outsmart Bitcoin Thanks to the Follower Effect
In a detailed post on X, Master Kenobi outlined reasons backing his prediction about Dogecoin. Even though Bitcoin has seen its dominance increase at the start of 2024, Dogecoin’s historical trends and community energy seem to uphold the analyst’s assertion.
Launched as a joke in 2013, Dogecoin has surpassed expectations and established itself as a top-10 cryptocurrency by market capitalization. The analyst emphasized that DOGE has outperformed Bitcoin in every market cycle over the past decade. He attributes this unique situation to the follower effect, which suggests that DOGE has benefited from riding on Bitcoin’s rise over the past few years.
Moreover, the analyst pointed out that Bitcoin has largely operated without a set model. This has allowed Bitcoin to become the model that other cryptocurrencies emulate, leading to a quicker growth for DOGE. During the bull runs of 2017 and 2021, Dogecoin’s gains significantly outweighed those of Bitcoin, driven by retail investors, memes, and endorsements from notable figures like Elon Musk.
When to Anticipate a DOGE Price Increase
Currently, Dogecoin boasts a market capitalization of $15.2 billion, showing a 67% rise since October 2023, which marks the start of the current market cycle. Drawing parallels with Bitcoin and the upcoming 2024 halving, Master Kenobi noted that Dogecoin’s path after the 2024 halving closely resembles Bitcoin’s trajectory following its halving in 2016. Specifically, he mentioned that Dogecoin’s market cap aligns with Bitcoin’s position approximately 190 days after its 2016 halving.
Based on this analysis, the analyst predicts that Dogecoin could reach a market cap of at least $320 billion by 2025. To achieve this, DOGE would need to surge over 2,000% in price over the following year. At the moment, DOGE is priced at $0.1043, meaning a market cap of $320 billion would require the price to rise to around $2.2.
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