Dogecoin’s Circulating Supply and Its Potential for Growth and Innovation
Understanding the circulating supply of digital assets is crucial to grasp their value. This is particularly true in the case of meme coins like Dogecoin (DOGE), where knowledge of the number of tokens in circulation can help comprehend different aspects of the cryptocurrency.
In December 2022, the circulating supply of DOGE tokens was estimated at 132 billion, in contrast to Bitcoin’s cap of 21 million coins, DOGE has no limit to the number of tokens that can be generated.
DOGE uses a PoW consensus mechanism for mining, whereby miners use computers to solve complex mathematical problems to validate transactions and generate new coins. With 10,000 DOGE in each block and one block added to the chain every minute, 1.44 million new DOGE coins are created each day.
The continuous supply of DOGE contributes to its relatively low price, which currently stands at $0.082, significantly below its all-time high of $0.74 in 2021. The coin’s popularity stems from its low price and the fact that it was intended to be used as a payment method.
The future of DOGE is uncertain due to several factors, including its combined circulating supply, the lack of utility as a meme coin, and concerns about its PoW consensus mechanism’s high energy consumption.
The Dogecoin Foundation has partnered with Ethereum co-founder Vitalik Buterin to transition the meme coin to a PoS-operating system, which could benefit its energy usage.
However, the impact on its price remains unknown. The potential integration of DOGE with Elon Musk‘s various service offerings also adds to the uncertainty surrounding the cryptocurrency’s future.