How does Dogecoin’s unlimited supply affect its price in the long run?

How does Dogecoin’s unlimited supply affect its price in the long run?

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Dogecoin’s unlimited supply is one of its defining and most controversial features. Unlike Bitcoin, which has a hard cap of 21 million coins, Dogecoin adds approximately 5 billion new DOGE to circulation every year. This continuous inflation means the supply will always grow, which can put downward pressure on its price over time.

This model was initially introduced to ensure that Dogecoin remained usable for everyday transactions without scarcity driving up the cost per coin. However, from an investment perspective, an ever-growing supply can dilute value unless there's equally growing demand to match it.

The unlimited supply makes Dogecoin function more like a traditional fiat currency, which central banks can also print indefinitely. While this approach keeps transaction fees low and encourages circulation, it may limit the coin's appeal as a long-term store of value, particularly for investors seeking deflationary assets.

Despite these concerns, Dogecoin has maintained strong community support and market resilience. Its price has seen several bull runs, particularly when social media hype, celebrity endorsements, or new adoption cases arise. In these cases, short-term demand can outpace inflation, allowing for significant price growth.

To monitor the effects of supply on Dogecoin’s current value, including how new coins entering circulation are influencing the market, check the updated doge price on Toobit.

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