Originally a joke coin, Dogecoin (DOGE) peaked in the 2021 bull market with a price of roughly $0.73 and a market value of $80 billion. Its worth has, however, drastically plummeted since then. Many investors are wondering whether DOGE, which is currently trading at roughly $0.14, can recover to its former glory given that 2025 may witness the next bull market. Still, there are various reasons this perspective is difficult, most importantly related to its inflationary character, supply dynamics, and market mood.
The Problem With Inflationary Supply of Dogecoin
Dogecoin’s inflationary supply model is one of the main things preventing it from attaining a fresh all-time high (ATH). Unlike Bitcoin with just 21 million coins, Dogecoin has an unlimited supply. The supply of DOGE tokens is always growing since mining generates over 5 billion new tokens yearly. This constant issue will cause inflationary pressure and a devaluation of each existing coin until demand for DOGE rises considerably faster than supply. When Dogecoin reached its ATH market value of $80 billion in 2021, its relative amount in circulation was significantly smaller. The estimated circulation value by 2024 is 146.37 billion DOGE. Should DOGE reach the same $80 billion market cap, its pricing would be about $0.5 even at its ATH price of $0.73. DOGE currently has to attain a far higher market cap than $80 billion in order to reach a new all-time high (ATH) price since the rise in supply has diminished the prospective influence of a bigger market cap on the price of the token. This inflationary character is a major hindrance without a deflationary mechanism (such as burning money).
Potential Growth Engines: Uses, Hype, and Community
Dogecoin’s success comes mostly from its active community and strong social media presence, which create a viral buzz and thereby raise the value of the coin. The community will have to gather once more if DOGE is to reach or exceed its past ATH; this could be spurred by well-known sponsorships from powerful people like Elon Musk. Such endorsements played a crucial role in the 2021 bull run, driving DOGE’s price to the roof. Furthermore, the creation of practical use cases can promote Dogecoin’s expansion. Even though Dogecoin was first only a joke coin with little use, continuous efforts to include DOGE as a payment option across numerous businesses could increase its worth in the real world. For instance, there are current talks on incorporating Dogecoin payments into other sites, such as Twitter (now X). Should these activities be successful, the ensuing utility may assist DOGE in keeping its higher rates in place.
Positive Price Forecasts for 2025
Given that they believe 2025 will see the next significant bull run, several analysts continue to have an optimistic view on Dogecoin. According to predictions, DOGE may hit $1. Considering the current supply, this would mean a market valuation of over $146 billion. Some, contend that Dogecoin has consistently produced large returns during bull markets in the past and that there is no reason to believe that the current cycle will be any different. Some projections even forecast DOGE at $3.8 during the climax of the next bull run, based on this historical tendency. These projections are predicated on positive market circumstances, increased use of cryptocurrencies, and persistence of the positive attitude around meme coins. Even with positive forecasts, though, DOGE would still need to fight with other well-established and up-and-coming cryptocurrencies for investor interest and attention if it were to attain its price target of $1 or more.
The Reasons Rexas Finance (RXS) May Beat Dogecoin
Despite its established brand and significant community support, Dogecoin’s inflationary supply and reliance on hype make it a speculative investment. Conversely, Rexas Finance (RXS) offers a simpler approach to generating value by using blockchain technology to address pragmatic concerns. Aiming to tokenize real-world assets (RWA), a market predicted to expand greatly as blockchain technology develops, RXS is a new project. Rexas Finance wants to transform conventional finance by tokenizing actual assets including real estate, commodities, and financial instruments. The platform helps to create digital tokens representing fractional ownership of certain assets, therefore enabling distributed asset purchases, sales, and exchanges. Thanks to the democratization of asset ownership, which reduces entry barriers and increases liquidity, the global audience may now access investment prospects. Tokenizing real-world assets has the power to revolutionize the financial sector by fixing inefficiencies in already-developed marketplaces. Among these inefficiencies include limited access for private investors, inadequate liquidity, and high transaction costs. Using blockchain technology, Rexas Finance can offer solutions that increase asset management’s accessibility, efficiency, and transparency.
Critical Components of Rexas Finance
Rexas Token Builder is a straightforward, safe tool for individuals and businesses tokenizing any real-world commodity. It simplifies the creation of asset-backed tokens, therefore enabling a range of applications for everything from the arts to real estate. An all-inclusive platform letting fresh ideas sell tokens for funding. It provides early-stage financing choices by letting businesses present their tokens to an investor network. Enables users to buy fractions of properties, therefore enabling the tokenization of real estate and allowing up real estate investment to a greater spectrum of individuals. This ability has the potential to upend existing real estate markets since it provides otherwise illiquid properties some liquidity and makes entrance into the market simpler. Rexas Finance also includes regulatory compliance tools, AI-powered smart contracts, and decentralized finance (DeFi) apps, all of which boost the platform’s usefulness and worth.
Market Possibility and RXS’s Potential
Real-world asset tokenization offers a trillion-dollar opportunity. Over $486 trillion worth of financial assets are traded globally; tokenizing even a small portion of these assets might result in significant growth for platforms such as Rexas Finance. As adoption rises, the RXS token—which speeds up transactions inside the ecosystem—has the potential to gain a substantial amount of value. Furthermore, Rexas Finance has an advantage over speculative assets like Dogecoin due to its focus on real-world use cases and resolving current market inefficiencies. Rexas Finance wants to change the way traditional assets are managed and exchanged in order to build lasting value, whereas Dogecoin mostly relies on community support and hype generated by social media.
Is Dogecoin A Better Investment Than Rexas Finance?
Dogecoin is a speculative bet due to its inflationary strategy and reliance on hype, even though it might still get interest during the next bull run. Rexas Finance (RXS), on the other hand, offers a more methodical approach to value creation and has the potential to gain traction in the asset tokenization market. Because of its cutting-edge features and capacity to address practical issues, the platform presents itself as a viable investment that, by January 2025, may surpass Dogecoin. Ultimately, Rexas Finance presents a fundamentally greater investment opportunity for anyone hoping to profit from the changing blockchain and asset management landscape, even though Dogecoin’s community may propel it to recoup its $80 billion market valuation.
About Rexas Finance :-
Website: https://rexas.com
Disclaimer: This is a sponsored article and is for informational purposes only. It does not reflect the views of Crypto Daily, nor is it intended to be used as legal, tax, investment, or financial advice
Disclaimer
The information provided in this article is only for educational and informational purposes and should not be considered financial or investment advice. We are not licensed financial advisors. Always conduct your research and seek guidance from a certified financial professional before making any investment decisions.
