Dogecoin (DOGE) has had an impressive performance over the past ten days, rising more than 500 percent to $ 0.45. The market cap of cryptocurrency surpasses well-established financial institutions such as ING, Barclays and Credit Agricole, even after a 15 percent correction.
The crypto money, which was born as an internet joke, has risen even more thanks to the posts of Tesla CEO Elon Musk. Musk is not the only billionaire supporting cryptocurrency.
Mark Cuban, owner of Dallas Mavericks, also supports DOGE. The NBA team even accepts payments with DOGE for product sales.
Dogecoin’s value exceeds well-established banks
While the Dogecoin community is targeting $ 1, most people do not take into account that the current supply of 129.6 billion will increase by 20 percent in the next five years. If DOGE reaches $ 1, its market cap will reach $ 156 billion, which is twice the current value of Binance Coin (BNB).
Still, there are currently 92 tradable assets with a market value of over $ 156 billion. Citigroup, Morgan Stanley, Unilever, and Shell are companies with a market value of $ 150 billion each, and will fall behind if the DOGE price exceeds $ 1.
On the other hand, while institutional investors can take short positions for these assets and profit from a price decrease, it is not possible for US investors to trade with Dogecoin. Dogecoin futures are not listed on CME or Bakkt, so making a profit from the decline of DOGE is not an option for institutional investors.
Although Dogecoin investors will be able to make history by exceeding $ 1, it seems unlikely that it will be permanent as institutional investors use short position tools.