A crypto analyst, who goes by the name Master Kenobi on platform X (formerly Twitter), has claimed that the cryptocurrency poised to surpass Bitcoin in this market cycle is none other than Dogecoin, the original meme coin. The analyst believes that Dogecoin will surpass Bitcoin in the current market cycle due to the follower effect, with Bitcoin serving as a foundational catalyst for the meme coin.
This comes at a time when Bitcoin has attracted the majority of investments and fresh capital in the crypto space since the year began, driven by heightened institutional interest. As a result, Bitcoin has outperformed many altcoins, with Ethereum, the leading altcoin, particularly struggling to keep pace.
Why Dogecoin is Set to Outperform Bitcoin Due to the Follower Effect
In an extensive post on X, Master Kenobi provided various points to back his assertion about Dogecoin. While Bitcoin has seen an increase in dominance since the start of 2024, Dogecoin’s historical achievements and community-supporting momentum lend credence to the analyst’s argument.
Initially launched as a joke in 2013, Dogecoin has surpassed expectations and established itself among the top 10 cryptocurrencies by market capitalization. Notably, the analyst pointed out that DOGE has consistently outperformed Bitcoin across all market cycles over the last decade. He attributes this intriguing dynamic to the follower effect between Bitcoin and Dogecoin. The follower effect indicates that DOGE has benefited from Bitcoin’s growth trajectory, using it as an advantageous launchpad recently.
Moreover, the analyst emphasized that Bitcoin has largely existed without a defined model. This absence has allowed Bitcoin to become the prototype that other cryptocurrencies follow, which has facilitated faster growth for DOGE. During the bull runs of 2017 and 2021, Dogecoin’s gains significantly outpaced Bitcoin’s, largely fueled by retail investors, memes, and endorsements from high-profile personalities such as Elon Musk.
Anticipating a DOGE Price Increase
As it stands, Dogecoin has a market capitalization of $15.2 billion, reflecting a 67% rise since October 2023, which marks the onset of the current market cycle. Drawing parallels with Bitcoin and the upcoming 2024 halving, Master Kenobi pointed out that Dogecoin’s present trajectory post the 2024 halving closely resembles Bitcoin’s performance following its 2016 halving. In particular, he noted that Dogecoin’s current market cap equates to where Bitcoin was approximately 190 days after its 2016 halving event.
Based on this logic, the analyst proposes that Dogecoin could potentially achieve a market cap of at least $320 billion by 2025. To reach this target within the projected timeframe, DOGE would need to experience a price surge of over 2,000% in the next year. As of now, DOGE is trading at $0.1043, which would translate to a price of around $2.2 to hit a market cap of $320 billion.
Featured image created with Dall.E, chart from Tradingview.com
