Dogecoin stays below $0.10 despite deflationary model

Key takeaways

• DOGE is down 0.5% and continues to trade below the $0.10 psychological level.
• The coin has been consolidating and could rally higher in the near term. 

Dogecoin (DOGE), the largest meme coin with a market capitalization of $14.27 billion, represents over 0.50% of the $2.49 trillion cryptocurrency market as of Wednesday. 

Dogecoin underperforms despite a disinflationary model

Dogecoin defends its inflationary model, stating that inflation will decrease gradually to 3.1% from 3.6% as the total DOGE supply increases. 

The assumption driving this claim is that demand for the meme coin will remain steady, supported by its robust community that uses DOGE for tipping, institutions launching DOGE-focused Exchange Traded Funds (ETFs), and its growing use in Decentralized Finance (DeFi) services.

While the narrative suggests a stable demand, it may not guarantee sustained positive pressure on DOGE’s price.

While Dogecoin’s fixed issuance model reduces inflation relative to the increasing supply, it does not necessarily reduce t...