Dogecoin (DOGE) ETF Could Send the Meme Coin to the Moon, Here's How

The potential approval of a Dogecoin (DOGE) Exchange-Traded Fund (ETF) could dramatically influence the price of the popular meme crypto.

The potential approval of a Dogecoin (CRYPTO: DOGE) Exchange-Traded Fund (ETF) by the U.S. Securities and Exchange Commission (SEC) could have a significant impact on the price of the meme coin.

Here's a closer look at the potential impact and how it could lead to a massive price rally for Dogecoin, making it a contender to become the third-largest crypto asset by market capitalization.

What Happens If A Doge ETF Gets Approved? ETFs are a safer investment compared to direct crypto ownership, making them more attractive to traditional investors. These investors prefer less volatile options and might find a DOGE ETF appealing for gaining exposure to the cryptocurrency market without the risks of direct holdings.

This increased demand from a broader base of investors could lead to a substantial price rally for Dogecoin.

Bitcoin and Ethereum experienced different outcomes after their ETF launches. Bitcoin initially saw a price dip following the “buy the rumor, sell the news” behavior but eventually climbed to a new high.

On the other hand, Ethereum has not sustained similar momentum since its ETF launch. Being a meme coin with a strong community, Dogecoin could respond differently, potentially seeing a more pronounced price surge.

Dogecoin's Market Position and Potential Volume Increase Currently ranked as the ninth-largest crypto by market capitalization, Dogecoin has a daily trading volume of $1,524,031,416, according to CoinGecko data.

If a DOGE ETF captures a similar percentage of Bitcoin ETF volume — which stands at around $21.15 billion — it could potentially add around $1.08 billion in new trading volume to Dogecoin.

To achieve a 1% increase in DOGE's price, approximately $200 million in trading volume is needed. Thus, if Dogecoin captures similar volume levels post-ETF approval, its price could see a dramatic surge, potentially leading to the forecasted 440% increase.

This would place Dogecoin at a market price of approximately $0.7371, surpassing its previous high of $0.73.

Dogecoin's Unique Potential for Growth Unlike Bitcoin and Ethereum, Dogecoin holds a special place in the crypto market as a meme coin, often fueled by community-driven hype.

The coin has previously shown the ability to generate massive gains within short time frames, a phenomenon attributed to its passionate community and support from prominent figures like Elon Musk. This enthusiasm, coupled with potential regulatory approval of a DOGE ETF, could serve as a strong catalyst for price growth.

There are also discussions around potential support for Dogecoin from U.S. regulatory bodies, such as the creation of a Department of Government Efficiency (D.O.G.E) agency, which could further boost its credibility and attract more investors.

Such developments could help Dogecoin not only achieve the forecasted price target but also push toward the $1 mark.

Path to Becoming the Third Largest Crypto Asset If Dogecoin reaches a price of $0.7371 following the potential ETF approval, it would result in a total market capitalization of approximately $146 billion, given its current circulating supply of around 146 billion tokens. For this to happen, however, sustained demand and increased trading volume would be essential.

The approval of a DOGE ETF could also introduce greater market liquidity, as ETFs generally encourage participation from institutional investors. This influx of funds could provide Dogecoin with the momentum needed to sustain higher price levels, reducing volatility and increasing overall market stability.