Barry Silbert, the founder and CEO of Digital Currency Group, has predicted that meme cryptocurrency Dogecoin’s (DOGE) market capitalization will fall to below $1 billion.
What Happened: Silbert said on Twitter that Dogecoin’s market capitalization is not worth its current market capitalization of $37 billion. Digital Currency Group is a venture capital company focused on the digital currency market and its subsidiaries include Grayscale Investments and CoinDesk.
it’s going back to sub $1 billion
— Barry Silbert (@BarrySilbert) May 29, 2021
Silbert added that Dogecoin is the “ultimate momentum, gamble trade.” He believes that once this momentum is gone, the current holders of the altcoin will move to other coins and learn that “there are many other/better ways to make 10x” returns.”
See Also: How to Buy Dogecoin (DOGE)
Nevertheless, the cryptocurrency investor added that Dogecoin will “certainly” not go away due to its passionate community and he is truly excited to see what the meme coin can become over time.
Dogecoin co-creator Billy Markus advised Silbert not to convince people by “belittling” them. He added he did not know why supporters of apex cryptocurrency Bitcoin (BTC) are “so hell bent on shooting themselves in the foot.”
Why It Matters: Created mainly as a joke in 2013, Dogecoin has shot to prominence this year, in major part due to endorsement from Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk. The meme cryptocurrency’s year-to-date gains are an impressive 6,878.79%.
The rapid rise of Dogecoin has led to the creation of several other meme-inspired cryptocurrencies.
However, the Shiba Inu-themed cryptocurrency is down 55.3% from its all-time high of $0.7376 reached on May 8. It has now fallen to seventh place in terms of market capitalization.
Silbert’s prediction about Dogecoin’s market capitalization falling to below $1 billion will mean that the cryptocurrency’s price will plummet from its current level of above $0.30 to well below $0.01.
Price Action: Dogecoin is up 8.8% during the past 24 hours and is trading at $0.3302 at press time.