When it comes to understanding the value of digital assets, knowing their circulation supply is vital. Moreover, in the realm of meme coins, understanding Dogecoin (DOGE) and how many tokens there truly are becomes important in forming a better understanding of their various aspects.
As of December 2022, there were approximately 132 billion Dogecoin (DOGE) tokens in circulation. Subsequently, the original meme coin doesn’t have a supply cap on the production of its tokens. Meaning, unlike an asset like Bitcoin and its 21 million coin limit, there is no ceiling on the amount of Dogecoin that can be minted and released.
How DOGE is produced
In understanding Dogecoin (DOGE) and its circulating supply, it is first important to understand how the tokens are produced. Specifically, the token uses a proof-of-work (PoW) consensus mechanism, meaning that the tokens are minted and released through the mining process.
Miners utilize computers to solve rather complex math problems in order to validate blocks of transactions, thus generating new coins. Conversely, Dogecoin adds a new block to the chain every single minute of the day. Additionally, with 10,000 DOGE in every block, a rate of 1.44 million new Dogecoins are minted and released per day.
How the DOGE Supply Affects Price
The market cap for Dogecoin currently sits at more than $11 billion. However, the continuous supply of the token contributes to its relatively low price. Currently, the asset is priced at $0.082, which is quite below its high of $0.74 in 2021.
Still, the low price remains a factor in the popularity of the meme coin because of the consistent creation of the digital asset. Conversely, the meme coin’s functionality was similar to that of other cryptocurrencies and was intended to be utilized as a form of payment. Conclusively, its theoretically endless supply has impacted the massive volatility of the asset.
The Future of DOGE
Dogecoin is undoubtedly among the top 10 most popular digital assets on the market. However, its future remains uncertain for a wide array of reasons. Specifically, because of its combined circulating supply, lack of utility as a meme coin, and some controversy surrounding its PoW consensus mechanism.
The PoW model has been largely criticized for its massive energy consumption. Specifically, the average energy consumed in every Dogecoin transaction exceeds the energy present in a fully charged Tesla Model 3 battery, according to Nerd Wallet.
Conversely, the Dogecoin Foundation has announced a partnership in 2022 with Ethereum co-founder Vitalik Buterin. Moreover, the collaboration would transition the meme coin to a proof-of-stake operating system. A consensus mechanism following Ethereum’s transition, known as The Merge. Additionally, the development should benefit the energy usage of the meme coin, but its impact on price is unknown.
Additionally, Dogecoin’s future is tied to the presence of Elon Musk. The self-proclaimed Dogefather has maintained a close connection to the asset. Subsequently, potential integrations with his various service offerings could be important. Adding more uncertainty to the ceiling of the original meme coin.