Dogecoin Slumps Behind Peers as Supply Dynamics Take Toll
On October 1, Dogecoin (CRYPTO:DOGE) slipped 4.7% to $0.095 while its major peers rose. Bitcoin (BTC) gained 1.3%, Ethereum (ETH) climbed 0.7%, XRP increased 0.6%, and Solana edged up 0.3%. Dogecoin's weekly change turned negative, down 1.6%, after a strong showing in August and September.
The disparity between Dogecoin and its major peers grows more apparent over longer periods. Over the past year, Dogecoin plummeted by 62%, leaving it significantly behind Ethereum (53%), Solana (43%), Bitcoin (33%), and XRP (31%). An investor who put $1,000 into DOGE a year ago would now have about $378.
Dogecoin's struggles can be attributed to its supply dynamics. With no maximum supply cap and approximately 156 billion DOGE currently in circulation, the network adds around 5 billion new coins yearly. This influx of new supply puts pressure on buyers, who must absorb roughly $1.4 million worth of fresh DOGE daily for the price to rise.