Dogecoin To Hit 69 Cents By Inauguration Day? Polymarket Traders Are Not Convinced

Polymarket traders are split on Dogecoin's (CRYPTO: DOGE) trajectory as Inauguration Day approaches, with a 41% chance for DOGE to hit the 69 cents milestone by Jan. 20 next year.

This represents a slight dip in confidence from the 53% chance on Nov.23.

With over $40,000 in trading volume on the market, the debate reflects mixed sentiment on Dogecoin's near-term prospects.

Dogecoin has surged 175% in the past month, with its market capitalization rising to $57.8 billion, overtaking luxury automaker Porsche's valuation of $56.1 billion.

Over the past year, Dogecoin has outperformed the car maker, rising 395%, while Porsche's market cap has dropped more than 34% due to weakening performance.

The rise has been fueled by a combination of retail enthusiasm, institutional adoption and high-profile endorsements.

Elon Musk's influence has been a significant factor in Dogecoin's resurgence.

His continued social media endorsements and his involvement in creating the Department of Government Efficiency (DOGE), a federal agency focused on reducing government spending, have stoked investor enthusiasm.

The agency's acronym, which coincidentally matches Dogecoin's ticker symbol, has been seen by some retail investors as a bullish signal for the token's future.

Musk's indirect backing has amplified Dogecoin's popularity among retail and institutional investors alike.

“Global enthusiasm for Dogecoin has reached unprecedented levels,” said a market analyst. “It's clear that Musk's influence remains a critical driver.”

Also Read: ‘Crypto Dad’ Chris Giancarlo Advocates For Passing Crypto Regulation From The SEC To Another Commission — Here’s Why

Why It Matters: Institutional backing for Dogecoin has also increased with the launch of the first DOGE-based exchange-traded product (ETP) by Valour, a subsidiary of DeFi Technologies, on November 26.

The DOGE ETP provides institutional investors a new way to gain exposure to the cryptocurrency, adding legitimacy to an asset once dismissed as a mere meme.

Despite its strong performance, Polymarket bettors reflect skepticism, with 59% doubting the token's ability to hit 69¢ by Inauguration Day.

Additionally, the Market Value to Realized Value (MVRV) ratio for Dogecoin, which measures the current market valuation against the average acquisition cost, suggests potential overvaluation.

A high MVRV ratio often precedes a price correction, adding another layer of uncertainty to Dogecoin's outlook.

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