Polymarket traders are divided on DogecoinIt is DOGE/USD trajectory as Inauguration Day approaches, with 41% chance for DOGE to reach 69 cents milestone by January 20 next year.
This represents a slight drop in confidence from the 53% probability on November 23.
With over $40,000 in trading volume in the market, the debate reflects mixed sentiment on Dogecoin’s near-term prospects.
Dogecoin has surged 175% over the past month, with its market capitalization reaching $57.8 billion, surpassing luxury automaker Porsche’s valuation of $56.1 billion.
Over the past year, Dogecoin has outperformed the automaker, rising 395%, while Porsche’s market cap has fallen more than 34% due to weakening performance.
This rise has been fueled by a combination of retail enthusiasm, institutional adoption and high-profile endorsements.
Elon MuskDogecoin’s influence has been a significant factor in Dogecoin’s resurgence.
Her continued support on social media and his involvement in the creation of the Department of Government Efficiency (DOGE), a federal agency focused on reducing government spending, have fueled investor enthusiasm.
THE agency acronymwhich coincidentally matches Dogecoin’s ticker symbol, was seen by some retail investors as a bullish signal for the token’s future.
Musk’s indirect support has amplified Dogecoin’s popularity among retail and institutional investors.
“Global enthusiasm for Dogecoin has reached unprecedented levels,” said one market analyst. “It’s clear that Musk’s influence remains a key driver.”
Why it’s important: Institutional support for Dogecoin has also increased with the launch of the first DOGE-based exchange-traded product (ETP) by Valuea subsidiary of DeFi Technologies, on November 26.
THE DOGE ETP offers institutional investors a new way to gain exposure to cryptocurrency, adding legitimacy to an asset once considered a mere meme.
Despite its strong performance, Polymarket punters are showing skepticism, with 59% doubting the token’s ability to reach 69 cents on Inauguration Day.
Additionally, Dogecoin’s market value to realized value ratio (MVRV), which measures the current market valuation relative to the average acquisition cost, suggests potential overvaluation.
A high MVRV ratio often precedes a price correction, adding another layer of uncertainty to the prospects of Dogecoin.
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