Cryptocurrency investors can sometimes overlook the supply inflation of a coin’s economic dynamics. Understanding how this economy affects cryptocurrencies is an important advantage to have in the crypto market.

암호화폐 투자자는 때때로 코인 경제 역학의 공급 인플레이션을 간과할 수 있습니다. 이 경제가 암호화폐에 어떤 영향을 미치는지 이해하는 것은 암호화폐 시장에서 갖는 중요한 이점입니다.

Current Status of Dogecoin

도지코인 현황

To understand the supply inflation on behalf of Dogecoin (DOGE), public market data from leading indexes was collected. Interestingly, calculations were made on what price it could reach if Dogecoin hit its all-time highest market value, considering the economic effects of inflation as well.

Any crypto asset requires more demand to maintain its value and may face inflationary supply. Both supply and demand can be determining factors in whether a cryptocurrency’s price rises or falls.

모든 암호화폐 자산은 가치를 유지하기 위해 더 많은 수요가 필요하며 공급 인플레이션에 직면할 수 있습니다. 공급과 수요 모두 암호화폐의 가격 상승 또는 하락 여부를 결정하는 요소가 될 수 있습니다.

Considering the CRYPTOCAP index, Dogecoin had reached its all-time highest market value of $98.473 billion on May 8, 2021. Meanwhile, according to data provided by 21milyon.com, the token was trading at a historic price of $0.7376 on the same day. Another calculation revealed that there was a circulating supply of approximately 133.504 billion DOGE at that time.

The Past and Future of Dogecoin

도지코인의 과거와 미래

In examining the supply inflation of DOGE and its economic effects, as of the time of writing, Dogecoin had a circulating supply of 142.030 billion DOGE. This may indicate a supply inflation of 8.526 billion DOGE (6.38%) over two years, or about 3% annually.

This supply inflation and economic conditions may indicate what could happen to Doge’s price. If Doge reaches the highest demand with a market value of $98.473 billion, DOGE will trade at a lower price proportionally from its all-time high.

Considering the circulating supply as of November 29, Dogecoin could trade at $0.6933 per token, even when referring to its highest price movement. Interestingly, compared to the previous price of $0.7376 in 2021, this would result in a loss of $0.0443 (6%).

11월 29일 현재 순환 공급량을 고려하면 Dogecoin은 최고 가격 변동을 언급하더라도 토큰당 0.6933달러에 거래될 수 있습니다. 흥미롭게도 2021년 이전 가격인 $0.7376과 비교하면 $0.0443(6%)의 손실이 발생합니다.

However, this may not necessarily worry investors. As of the time of writing, the current price of $0.0804 indicates a potential increase of 762%.

For such a price movement to occur, it is important to understand that Dogecoin requires the same demand as it had in 2021. Accordingly, there is no guarantee that this demand will be seen again.

이러한 가격 변동이 발생하려면 Dogecoin에 2021년과 동일한 수요가 필요하다는 점을 이해하는 것이 중요합니다. 따라서 이 수요가 다시 나타날 것이라는 보장은 없습니다.

• Dogecoin’s market dynamics analyzed.
• Impact of inflation on Dogecoin’s value discussed.

인플레이션이 Dogecoin의 가치에 미치는 영향에 대해 논의했습니다.

• Historical price fluctuations and future predictions examined.

계속 읽기: https://en.coin-turk.com/understanding-dogecoins-inflation-and-its-economic-impact-on-crypto-value/