Dogecoin price could reach new highs if a Dogecoin ETF market gains approval and attracts only 30% of flows from Bitcoin ETF products.
Dogecoin (DOGE) is one of the best performers in the ongoing bull market, currently trading at a high last seen in June 2021. Despite the market-wide correction, which triggered a 2% decline, 8% of the price of Dogecoin in 24 hours, the meme coin shows an increase of 159% in November.
DOGE achieved this immense growth rate through simple market speculation and discussions around the Ministry of Government Effectiveness (DOGE) led by Tesla CEO Elon Musk in the new Donald Trump administration.
DOGE joins market speculation
Interestingly, the impact of external fundamental market catalysts, such as ETFs, has yet to materialize, with these factors capable of triggering a more substantial price rise. Notably, the rise in Bitcoin prices in the first quarter was partly fueled by inflows into Bitcoin ETFs, launched in January.
Furthermore, the ongoing uptrend, which saw BTC cross $99,000, is also explained by capital flows into ETF products. With Bitcoin ETFs currently boast With inflows worth $30.8 billion since January, discussions around ETFs for other crypto assets have emerged.
Ethereum (ETH) was next to attract ETF productslaunched in July. Additionally, some asset managers have filed for XRP ETFs and Solana ETFs. However, the SEC has not yet approved these filings.
Dogecoin is in the background, but the possibility of an ETF for the meme coin is not ruled out. Notably, Nate Geraci, CEO of ETF Store, recently argued that some asset managers might file Dogecoin ETFs as a marketing strategy.
Dogecoin price if its ETFs capture 30% of Bitcoin ETF inflows
Meanwhile, Bloomberg ETF expert Eric Balchunas note that December 31 could be the perfect time to apply for a Dogecoin ETF. If asset managers show interest in Dogecoin for an ETF product, the market could see an influx of capital.
Such an influx is capable of triggering an impressive increase in the price of Dogecoin. Notably, while Bitcoin ETF products are currently seeing $30.8 billion in cumulative net inflows, if a Dogecoin ETF market captures just 30% of that figure, DOGE’s market value could skyrocket.
As a reminder, 30% of Bitcoin ETF inflows amount to $9.24 billion in capital injection. If we mobilized a quarter of the Bank of America (BoA) multiplier of 118x, this would lead to a market cap multiplier of 29.5x for every dollar entering the Dogecoin ETF.
At this 29.5x rate, the $9.24 billion would translate to an additional market cap of $272.58 billion for Dogecoin. This would bring DOGE’s market valuation to $334.68 billion, slightly lower than Ethereum’s current market cap of $406.58 billion.
With a market cap of $334.68 billion, Dogecoin price could cross the $1 mark, essentially. climbing to $2.2 per token. Analysts such as Ali Martinez believe this target is achievable for Dogecoin price, with Martinez recently forecasting a possible rally to $2.4.
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