The approval of a DOGE Exchange-Traded Fund (ETF) could significantly impact the Dogecoin price, potentially driving it to new heights. Given the previous market response to Bitcoin ETFs, an approved Dogecoin ETF would likely attract substantial institutional investment and enhance market liquidity. This surge in demand could push the price of Dogecoin well above its current levels, making the $1 mark a more realistic target for investors.
DOGE price today is down 5.7%, trading at $0.1368 after Bitcoin lost the $67,000 support. The crypto market is down 2.1%, hovering around $2.4 trillion.
How High Could Dogecoin Price Climb with a DOGE ETF Approval?
If a Dogecoin (DOGE) ETF were approved, it would affect the positively price of DOGE since ETFs are considered less risky compared to normal crypto assets and stocks. Traditional investors who want to be exposed to Dogecoin without suffering market volatility would choose to invest in a DOGE ETF. This will likely lead to a price explosion that could send DOGE to new all-time highs.
However, to better understand how DOGE price would perform, it would be prudent to explore the only two existing crypto ETFs: the spot Bitcoin ETF and the spot Ethereum ETF.
When these two were approved on January 10 and July 23, respectively, it was sell-the-news news even as most had bought the rumor leading up to the approval. While Bitcoin later regained momentum and made a new all-time high in the following two months, Ethereum has consistently dropped since its ETF began trading.
Dogecoin price will likely perform like one of these two assets in the event of an ETF approval. However, since DOGE is in a niche of its own (meme coin), the impact may be exponentially more significant as this niche is known to explode with thousands of percentage gains. In contrast, utility coins only rise a few hundred percent.
DOGE Price If A Dogecoin ETF Was Approved?
Dogecoin price is currently the 9th largest crypto asset by market cap, with $1.5 billion in trading volume. This is currently 5.11% of Bitcoin’s total daily trading volume, which is $30 billion, per CoinGecko data.
5.11% of the total Bitcoin ETF volume ($21.15 billion) is around $1.08 billion. Given the current price and market cap, it would require around $200 million worth of trading volume to push the Dogecoin price up by only 1%.
Hence, this DOGE price forecast shows that if the meme coin harnesses 5.11% of BTC ETF volume (like it already does for its normal spot and derivatives trading volume), it would surge by at least 440% after ETF approval, putting its price around $0.7371, which is just above its previous all-time high.
The performance of BTC and ETH post-ETF approval suggests that a potential DOGE ETF could go either way. However, unlike Ethereum, Dogecoin enjoys a fierce and dedicated community that has been with it for years now.
Besides hype and support from the richest man on the planet, Elon Musk, and a potential Department of Government Efficiency (D.O.G.E) agency in the U.S. government could send Dogecoin price beyond $0.7371 and well above $1. At the current circulating supply of $146 billion, DOGE would swell to a $146 billion market cap, making it the third largest crypto asset in the world.
Frequently Asked Questions (FAQs)
If Dogecoin captures 5.11% of Bitcoin’s ETF volume (a figure similar to its current share of BTC’s daily trading volume), it could rise to $0.7371, a price increase of around 440%
A DOGE ETF could significantly boost the price, as it would open up Dogecoin to a broader range of traditional investors who might avoid direct crypto purchases due to volatility.
Yes, it’s possible. With continued support from influential figures like Elon Musk and strong community backing, Dogecoin could surge beyond $0.7371 and even reach $1 or higher.
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Evans Karanja
Evans Karanja is a crypto analyst and journalist with a deep focus on blockchain technology, cryptocurrency, and the video gaming industry. His extensive experience includes collaborating with various startups to deliver insightful and high-quality analyses that resonate with their target audiences. As an avid crypto trader and investor, Evans is passionate about the transformative potential of blockchain across diverse sectors. Outside of his professional pursuits, he enjoys playing video games and exploring scenic waterfalls.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/how-high-could-dogecoin-price-go-if-a-doge-etf-is-approved/
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