$DOGE increases its supply by 5 billion annually, no wonder it hasn't been able to rise much?
Many people say DOGE can't rise because "it has no total supply cap."
This makes sense, but you can't blame all the problems on inflation. Let's analyze it today.
$DOGE increases by about 5 billion coins every year, and the current circulating supply has exceeded 155 billion coins. This means the current annual inflation rate is about 3.2%. Moreover, as the total supply grows, this percentage will decrease year by year. It’s not printing more and more, nor is there a sudden flood of supply.
However, based on the current price, the 5 billion new DOGE added each year still corresponds to roughly $350 million in supply. Miners have to pay for electricity and equipment costs, and part of their rewards will inevitably be sold into the market.
When the market is good, $350 million might be just a few days’ trading volume, so the market can quickly absorb it. When the market cools down, it becomes a fixed annual expense. New funds must first absorb this portion of coins for DOGE to have room to rise further.
So I think what DOGE really lacks is not "limited supply," but long-term buying demand.
Stories about Musk, X Pay, tipping, and daily spending have been told for many years, but actual use cases for DOGE have not significantly expanded. Without demand, it can only follow BTC’s mood. When the market sentiment is good, it rallies for a while; when the hype fades, it slowly gives back the gains.
DOGE’s monetary model itself isn’t particularly outrageous. Fixed inflation allows miners to receive long-term rewards and fits its positioning as a "small payment currency."
But it’s telling a different story than BTC.
BTC relies on decreasing supply, while DOGE should really rely on more people using it.
If payment and tipping use cases never take off, the 5 billion new coins added annually act like a dull knife—it won’t crash the price overnight but will gradually erode some rebound potential over time.
Many people say DOGE can't rise because "it has no total supply cap."
This makes sense, but you can't blame all the problems on inflation. Let's analyze it today.
$DOGE increases by about 5 billion coins every year, and the current circulating supply has exceeded 155 billion coins. This means the current annual inflation rate is about 3.2%. Moreover, as the total supply grows, this percentage will decrease year by year. It’s not printing more and more, nor is there a sudden flood of supply.
However, based on the current price, the 5 billion new DOGE added each year still corresponds to roughly $350 million in supply. Miners have to pay for electricity and equipment costs, and part of their rewards will inevitably be sold into the market.
When the market is good, $350 million might be just a few days’ trading volume, so the market can quickly absorb it. When the market cools down, it becomes a fixed annual expense. New funds must first absorb this portion of coins for DOGE to have room to rise further.
So I think what DOGE really lacks is not "limited supply," but long-term buying demand.
Stories about Musk, X Pay, tipping, and daily spending have been told for many years, but actual use cases for DOGE have not significantly expanded. Without demand, it can only follow BTC’s mood. When the market sentiment is good, it rallies for a while; when the hype fades, it slowly gives back the gains.
DOGE’s monetary model itself isn’t particularly outrageous. Fixed inflation allows miners to receive long-term rewards and fits its positioning as a "small payment currency."
But it’s telling a different story than BTC.
BTC relies on decreasing supply, while DOGE should really rely on more people using it.
If payment and tipping use cases never take off, the 5 billion new coins added annually act like a dull knife—it won’t crash the price overnight but will gradually erode some rebound potential over time.