Here’s How High Dogecoin Can Rise if DOGE Gets $50 Billion Daily Volume

Dogecoin, the first meme coin, has repeatedly shown its capacity for explosive price movements, often coinciding with spikes in trading volume.  Historical data reveals that each time Dogecoin (DOGE) sees a price surge, there is an accompanying rise in volume. As a result, understanding the relationship between volume and price could help in projecting what will happen if DOGE achieves a daily volume of $50 billion. Historical Context Between DOGE’s Volume and Price Dogecoin reached its all-time high above $0.73 in May 2021, fueled by a surge in daily trading volume, which peaked at about $46 billion, according to market data from CoinMarketCap. This massive rise was influenced by retail enthusiasm, celebrity endorsements like Elon Musk’s tweets, and market-wide euphoria. At its peak, Dogecoin’s market cap exceeded $98 billion, making it one of the top crypto assets by valuation at the time. However, as DOGE dropped from the $0.73 peak, investor participation reduced, leading to an equal slump in trade volume. In recent times, Dogecoin’s 24-hour volume averaged $3.5 billion. Nonetheless, this figure surged massively amid the latest election-induced increase in price. For context, Dogecoin spiked 177% from $0.1582 on Nov. 5 to a three-year peak of $0.4385 on Nov. 12. Within this period, volume rose beyond $19 billion and particularly hit a peak of $39.9 billion on Nov. 12. Dogecoin Potential Price at $50B Volume Currently, Dogecoin trades at around $0.3945 with a 24-hour volume of $8.7 billion. This is in contrast to its 2021 heights, confirming the important role of volume in driving upward momentum.  When trading volume spikes, it typically signifies heightened interest and liquidity, which can amplify price movements, especially in speculative assets like DOGE. The relationship between trading volume and price is not straightforward, as price is determined by supply and demand. However, we can make a simplified estimate based on the proportional increase in trading volume and assume that higher volume leads to higher prices due to increased demand. Using this as a benchmark, If trading volume increases to $50 billion per day and we assume proportionality, the price of Dogecoin could rise to approximately $1.23 per coin. The Price of $1.23 would imply a new market cap of roughly $212 billion, which would place Dogecoin among the most valuable cryptocurrencies. This would require significant, sustained interest and investment. However, this would depend on several factors. The first is a rise in demand. Notably, higher trading volume often translates to rising demand. With $50 billion in daily activity, massive capital inflows could push prices higher, especially if new buyers enter the market. However, the second factor is speculative momentum. Crypto assets thrive on speculation, and Dogecoin, as a meme token, benefits from social media buzz and community-driven hype. A volume surge could attract traders aiming to capitalize on short-term price spikes. Also, greater liquidity from high volume can lead to sharper price movements, particularly if large transactions occur. If most of the volume consists of buy orders, upward pressure on DOGE’s price would be substantial.