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Cryptocurrency News Articles
Dogecoin (DOGE) vs. Rexas Finance (RXS): Which Is the Better Investment in 2025?
Oct 20, 2024 at 10:01 pm
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.
Dogecoin (CRYPTO: DOGE), which began as a joke coin, attained its peak during the 2021 bull market with a price of roughly $0.73 and a market value of $80 billion. However, its worth has drastically plummeted since then.
Given that 2025 may witness the next bull market, many investors are wondering whether DOGE, which is currently trading at roughly $0.14, can recover to its former glory. 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
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