Dogecoin (DOGE) market cap is $ 50 billion, outperforming ING and Barclays

189
SHARES
1.5k
VIEWS
ADVERTISEMENT


The past ten days have been downright impressive for Dogecoin (DOGE), which rose more than 500% to a new all-time high of $ 0.45. Even after a 15% correction, the strong rally catapulted Dogecoin market capitalization through established financial institutions such as ING, Barclays and Credit Agricole.

The meme-driven cryptocurrency was boosted by multiple Twitter posts from Elon Musk, the CEO of Tesla and SpaceX and the second richest person alive. Musk isn’t the only billionaire backing the cryptocurrency.

Related articles

Whether or not there is a basis for the meteoric price hike, Mark Cuban, owner of Dallas Mavericks, has also publicly defended DOGE. The professional basketball team even accepts it for merchandise sales.

Is Dogecoin worth more than Citigroup or Morgan Stanley?

While the Dogecoin community is constantly aiming for the $ 1 target, many do not acknowledge that the current supply of 129.6 billion will grow 20% in 5 years. Thus, USD 1 per DOGE would result in a market capitalization of USD 156 billion or double the current valuation of Binance Coin (BNB).

To show how outrageous the proposed $ 1 target is, there are currently 92 tradable assets that exceed a market cap of $ 156 billion. Citigroup (C), Morgan Stanley (MS), Unilever (UL) and Shell (RDS.A) are all companies with a market cap of $ 150 billion and would therefore be below Dogecoin if their fan base somehow managed to get their value to increase $ 1.

Assets with a market capitalization of $ 150 billion or more. Source: 8marketcap.com

It’s worth noting that institutional investors can take short positions and bet on a drop in the price of these assets, while Dogecoin futures are not available to US-based traders. Not listed on either CME or BAKKT, which means betting against DOGE is not an option for professional traders.

Inefficiencies will subside as markets develop

As the cryptocurrency market grows, institutionalized exchanges will offer altcoin derivatives, creating a more efficient market. Comparing Dogecoin’s market capitalization to more established banks yields skewed numbers.

While some claim that new regulations are needed to avoid these inefficiencies, keep in mind that Gamestop (GME) stocks rose over 860% in January.

Although Gamestop has not made a profit for the past six years, the frenzy caused by coordinated social investments has resulted in a market cap of over $ 24 billion, which is higher than that of the National Bank of Canada (NA .TO).

In theory, no smart investor would deliberately choose Gamestop over a bank that consistently makes profits in excess of CAD 2 billion a year. However, market inefficiencies lead to temporary distortions.

Similarly, Dogecoin investors could make history by hitting $ 1, but this valuation is unlikely to last as institutional traders sell short.

The views and opinions expressed here are solely those of author and do not necessarily reflect the views of Cointelegraph. Every investment and trading step is associated with risks. You should do your own research when making a decision.