How many Dogecoins are there totally?
You can hardly find anyone who has never heard about Bitcoin or Ethereum, even if this person is far from the blockchain and digital technologies. Their names ring out and they are completely appreciated by the crypto community. But they are not the only well-deserved members of the crypto token family that are worth your attention. To prove this, let’s take Dogecoin as an example of such a promising piece. By the way, do you know how many Dogecoins are there in circulation today? Read this article to know the answer (yes, this is a kind of a sales pitch).
Being launched as a meme, this cryptocurrency Dogecoin has gained much popularity and has achieved a quantum leap forward in 2021. Its success has become possible due to the attention of such influencers like Snoop Dogg or Elon Musk, the self-proclaimed “Dogefather.”
What is the number of Dogecoins in circulation?
Let’s return to the question asked above. To cut a long story short, according to CoinMarketCap, there are over 132.67 billion DOGE at the time of writing of this article and this number is constantly growing.
Actually, come to think of it, this figure is immensely impressive and thought-provoking. Just compare it with other coins. For example, unrivaled Bitcoin demonstrates only about 18,9 million BTC in circulation. Its fiercest competitor, Ether, can boast a number of 118,9 million. The much less popular Stellar (XLM) is the closest to DOGE with a supply of 105 billion.
Is the total number of DOGE limited?
There are no restrictions on how many Dogecoins you can mine per day. However, its founder Jackson Palmer meant a limited emission of 100 billion coins. But then he changed his mind and these restrictions were eliminated. Now maximum supply is unlimited and the number of new DOGEs minted depends only on the desire of miners to participate in mining activities. That is why it is impossible to say how many Dogecoins left to be minted. The reward is fixed at 10 thousand DOGE per block and this means that 5 billion new coins will enter the market every year.
In fact, unlimited emission forms the basis for inflation and makes a coin inflationary by its nature. But in the case of DOGE, this rule has quite clearly not operated. The demand for this cryptocurrency exceeded the supply provided by miners resulting in a price spike.
Is it possible that such a trend will continue? The most likely scenario is that sooner or later the price will come down. DOGE is not backed by real assets and every day more and more newly minted coins appear in the market. Compare it to Bitcoin with its limited supply of 21 million. This determines the BTC’s value and gives confidence in this coin. Thus, DOGE’s inflation and fall in prices seem unavoidable.
But there is one thing that can help this coin to keep afloat. The attention of celebrities who create a public hype around it can attract the flow of money from their followers and admirers. It is quite natural that this increased supply of fiat will stimulate the price to go up. But then we have to expect a setback as it was observed in July 2021 when DOGE had a record drop up to $0.17 though in May its price had reached $0.69.
The peculiarities of mining
Mining is one of the easiest ways to obtain these much-coveted coins. Dogecoin mining functions in mainly the same way that mining of any other proof-of-work cryptocurrency. This option is offered by many projects but their conditions may significantly vary. For example, today it is very difficult to enter BTC mining as it requires very expensive equipment and a powerful source of electric power that may prove unaffordable for most solo miners.
But Dogecoin is quite another matter. Miners get block rewards every minute while a BTC block is produced approximately every 10 minutes. As a result, solo miners have ten times greater chances to find a block on their own.
DOGE mining pool is another way to organize mining. And in this case, the group of miners who pool their resources and share the rewards can expect greater results and this reduces fees and transaction costs.
So if you decide on entering mining activities, both solo mining and mining pools are available for you. Originally, Dogecoin featured a randomized reward that was received for each mining block. But as we have already mentioned above, today the reward is fixed at 10 thousand DOGE per block as Jackson Palmer decided that this step would help to maintain mining. In fact, this update made DOGE mining really more attractive, and an active community of miners is one of the reasons Dogecoin continues to operate and be traded.
For most of the time of its existence, Dogecoin didn’t undergo changes and updates. From 2015 to 2018, the DOGE’s code remained the same and its development was put on hold. In the following years, relatively few code updates and releases were performed to keep the currency operational. This infrequent tech development is considered to be among the risks of owning Dogecoin.
In 2015, one of Dogecoin’s creators Jackson Palmer distanced himself from the project criticizing the crypto community for its “toxicity.” Since that time, no one was personally responsible for updates as the project was left in the hands of volunteer developers.
There were several updates released in 2021 but the previous major upgrade was provided in November 2019. In fact, Dogecoin was seriously updated only twice from 2015 after Palmer’s exit. Of course, it can’t help leading to big technical problems including those with scaling. But each time Dogecoin’s price surges Dogecoin’s developers do some coding to improve the situation.
How many people own Dogecoin?
The ownership of DOGE is highly concentrated. The coins are kept mainly by a small number of wallet owners. While around 20% of available DOGE is accumulated in one wallet, over 50% of the entire amount belongs to 20 addresses. Of course, it is quite possible that the holders of some largest wallets are crypto exchanges or even Dogecoin mining pools but nobody knows if it is true.
Such a situation raises concerns as such big holders can easily influence the market. These Dogecoin whales can control and manipulate the demand making this very coin a kind of centralized currency. Take this fact into consideration if you decide on investing in DOGE.
The bottom line
The number of coins in circulation has already exceeded the originally conceived amount and has risen to above 132 billion. This number will increase and new coins will be minted every day until the public loses its interest in this cryptocurrency. When will it happen? There is no answer. In any case, no earlier than the support of influencers exhausted.
This coin has soared from a coin created as a parody after a popular internet meme to a coin with a market cap of over $25 billion. Not bad for a meme coin, is it? But it is still risky for serious investments. Maybe, the better decision is to have in your crypto portfolio but don’t put high hopes on it.
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