Dogecoin's Price Lagging Behind Majors Due to Unlimited Supply

Despite recent gains, Dogecoin's price has been lagging behind major cryptocurrencies like Bitcoin and Ethereum. In the past week, Dogecoin fell by 4.7% to around $0.095, while Bitcoin rose 1.3%, Ethereum gained 0.7%, XRP climbed 0.6%, and Solana edged up 0.3%. This decline is not unique to Dogecoin, as Zcash and NEAR Protocol also fell by 6.6% and 9.1%, respectively.

The main reason for Dogecoin's struggles is its supply dynamics. With approximately 156 billion DOGE currently in circulation and no maximum supply cap, the market must absorb about $500 million worth of new coins every year. This influx of new coins makes it challenging for Dogecoin to maintain its price.

Dogecoin's 90-day gain of 22% trails behind the significant increases seen in Ethereum (53%), Solana (43%), Bitcoin (33%), and XRP (31%). Over longer periods, Dogecoin is down by 20% in 2026 and 62% over the past year. The disparity grows even more apparent when comparing its all-time high of $0.73 reached in May 2021 to its current price.

The supply dynamics of Bitcoin and Ethereum are different from Dogecoin's. Bitcoin has a capped supply of 21 million coins, while Ethereum burns part of its transaction fees to offset new supply. This means that for Dogecoin's price to rise, the market must absorb about $1.4 million worth of new DOGE every day.