London Daily

Focus on the big picture.
Thursday, Sep 11, 2025

Dogecoin has significantly outperformed Bitcoin and Ethereum this year

Dogecoin has significantly outperformed Bitcoin and Ethereum this year

Dogecoin is likely to continue to significantly outperform both Bitcoin and Ethereum this year

If you want a cryptocurrency that has performed extremely well and is likely to continue to outperform other cryptos, look at Dogecoin. Here is a simple example. So far this year, Dogecoin, at $0.072, as of midday April 12, is almost 12 times its price of $0.0057 at the end of Dec. 31. 2020. That represents a gain in value of 1163% in that time frame.

By contrast, Bitcoin is up just 104% year-to-date. The premier cryptocurrency ended 2020 at $29,374 per Bitcoin but is now just over $60,000. Even Ethereum is up just 193% year-to-date from $730.37 at end of last year to $2,142.79 today.

In other words, these two well-known cryptocurrencies also have had a stellar performance this year, at least compared to stocks, bonds, and gold. But they have not risen anywhere near as much as Dogecoin.

Reasons for Dogecoin’s Outperformance

Some of this could be due to the fact that Dogecoin has a much smaller market capitalization than either Bitcoin or Ethereum. For example, CoinMarketCap.com reports that Dogecoin is the 17th largest crypto vs. first and second for BTC and ETH cryptos. Dogecoin has a market capitalization of $9.2 billion. This compares with $1,122 billion for Bitcoin and $247.27 billion for Ethereum.

In other words, it might be somewhat harder for larger cryptos to rise as fast as a smaller crypto such as Dogecoin. This is also sort of borne out by the trading volume. CoinMarketCap.com indicates that in the past 24 hours, 4.6% of Bitcoin’s market cap was traded.

In contrast, 35% of Dogecoin’s market value was traded in the last 24 hours.

Another reason is the difference in supply, not just demand. For example, Dogecoin releases 5 billion Dogecoin each year to be mined on a continuing basis. This is basically a slightly inflationary supply constraint.

By contrast, Bitcoin has a deflationary supply structure. It has a limited number of Bitcoin (21 million) that can be mined in its lifetime. If Dogecoin’s outperformance continues as its market cap rise, this will tend to bring more credence to inflationary supply cryptos.

The last reason for Dogecoin’s outperformance is that one group owns a large portion of Dogecoins. As I discussed in my last article, the Wall Street Journal reported on Feb. 17 that one individual owns as much as 28% of the total supply of Dogecoins.

What To Do With Dogecoin

Most people who are considering investing in Dogecoin should do so only as a diversified position among other crypto coins. Don’t forget, volatility on the upside can just as easily translate into huge downside risk.

For example, setting the dollar value of Dogecoin as a percentage of the total cryptocurrency exposure one wants to have is a good diversification policy to follow.

A final major reason for the volatility in Dogecoin is what I would call the Musk effect. He has been very vocal about supporting the cryptocurrency – but sometimes with a sort of tongue-in-cheek slant to his remarks. Lately, his tweets about Dogecoin seem to be more serious. Barron’s magazine has taken note of this. They pointed out on March 15 that Musk had spent a good deal of the weekend tweeting about Dogecoin.

Don’t buy Dogecoin just because Elon Musk is tweeting about it. For all we know, he is the person that owns 28% of the Dogecoin and is talking up his book.

In any case, the various reasons why people are buying Dogecoin will tend to continue as long as the crypto coin keeps rising in value. In that sense, it will outperform. It could also outperform on the downside as well.

Source: fintechs.fi - fintech news

Newsletter

Related Articles

0:00
0:00
Close
ChatGPT CEO signals policy to alert authorities over suicidal youth after teen’s death
The British legal mafia hit back: Banksy mural of judge beating protester is scrubbed from London court
Surpassing Musk: Larry Ellison becomes the richest man in the world
Embarrassment for Starmer: He fired the ambassador photographed on Epstein’s 'pedophile island'
Manhunt after 'skilled sniper' shot Charlie Kirk. Footage: Suspect running on rooftop during panic
Effective Protest Results: Nepal’s Prime Minister Resigns as Youth-Led Unrest Shakes the Nation
Qatari prime minister says Netanyahu ‘killed any hope’ for Israeli hostages
King Charles and Prince Harry Share First In-Person Moment in 19 Months
Starmer Establishes Economic ‘Budget Board’ to Centralise Policy and Rebuild Business Trust
France Erupts in Mass ‘Block Everything’ Protests on New PM’s First Day
Poland Shoots Down Russian Drones in Airspace Violation During Ukraine Attack
Brazilian police say ex-President Bolsonaro had planned to flee to Argentina seeking asylum
Trinidad Leader Applauds U.S. Naval Strike and Advocates Forceful Action Against Traffickers
Kim Jong Un Oversees Final Test of New High-Thrust Solid-Fuel Rocket Engine
Apple Introduces Ultra-Thin iPhone Air, Enhanced 17 Series and New Health-Focused Wearables
Macron Appoints Sébastien Lecornu as Prime Minister Amid Budget Crisis and Political Turmoil
Supreme Court temporarily allows Trump to pause billions in foreign aid
Charlie Sheen says his father, Martin Sheen, turned him in to the police: 'The greatest betrayal possible'
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
Pig Heads Left Outside Multiple Paris Mosques in Outrage-Inducing Acts
Nvidia’s ‘Wow’ Factor Is Fading. The AI chip giant used to beat Wall Street expectations for earnings by a substantial margin. That trajectory is coming down to earth.
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
On the Anniversary of Queen Elizabeth’s Death: Prince Harry Returns to Britain
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Murdoch Family Finalises $3.3 Billion Succession Pact, Ensuring Eldest Son’s Leadership
Big Oil Slashes Jobs and Investments Amid Prolonged Low Crude Prices
Court Staff Cover Up Banksy Image of Judge Beating a Protester
Social Media Access Curtailed in Turkey After CHP Calls for Rallies Following Police Blockade of Istanbul Headquarters
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
Elon Musk Poised to Become First Trillionaire Under Ambitious Tesla Pay Plan
France, at an Impasse, Heads Toward Another Government Collapse
Burning the Minister’s House Helped Protesters to Win Justice: Prabowo Fires Finance Minister in Wake of Indonesia Protests
Brazil Braces for Fallout from Bolsonaro Trial by corrupted judge
The Country That Got Too Rich? Public Spending Dominates Norway Election
Nearly 40 Years Later: Nike Changes the Legendary Slogan Just Do It
Generations Born After 1939 Unlikely to Reach Age One Hundred, New Study Finds
End to a four-year manhunt in New Zealand: the father who abducted his children to the forests was killed, the three siblings were found
Germany Suspends Debt Rules, Funnels €500 Billion Toward Military and Proxy War Strategy
EU Prepares for War
BMW Eyes Growth in China with New All‑Electric Neue Klasse Lineup
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
US Justice Department Launches Criminal Mortgage-Fraud Probe into Federal Reserve Governor Lisa Cook
Escalating Drug Trafficking and Violence in Latin America: A Growing Crisis
US and Taiwanese Defence Officials Held Secret Talks in Alaska
Report: Secret SEAL Team 6 Mission in North Korea Ordered by Trump in 2019 Ended in Failure
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Florida Murder Case: The Adelson Family, the Killing of Dan Markel, and the Trial of Donna Adelson
×