How a Dogecoin ETF Approval Could Skyrocket DOGE Price?
The potential approval of a Dogecoin Exchange-Traded Fund (ETF) could have a profound effect on the price of DOGE, possibly propelling it to unprecedented heights. Reflecting on the market’s response to Bitcoin ETFs, an approved Dogecoin ETF would likely attract significant institutional interest, which could boost liquidity in the market. This heightened demand might push DOGE’s price well above current levels, making the $1 mark a more realistic target for many investors.
At present, Dogecoin is down by 5.7%, trading at $0.1368, following Bitcoin’s loss of the $67,000 support level. The overall crypto market is down 2.1%, hovering around a total market cap of $2.4 trillion.
How High Could Dogecoin Price Climb with a DOGE ETF Approval?
If a Dogecoin ETF is approved, it would positively impact the price, as ETFs are generally seen as less volatile than individual crypto assets or stocks. This would attract more traditional investors who wish to gain exposure to Dogecoin without enduring the full extent of the market’s price swings. As a result, the demand for DOGE could spike, potentially driving its price to new record highs.
To gauge how DOGE might perform post-approval, it’s worth examining the performance of the two existing crypto ETFs: the spot Bitcoin ETF and the spot Ethereum ETF. When these were approved on January 10 and July 23, respectively, they experienced a “sell-the-news” effect, as investors had already bought heavily in anticipation of the news. However, while Bitcoin later regained momentum and hit a new all-time high in the months that followed, Ethereum has faced a consistent decline since its ETF began trading.
Given this mixed precedent, Dogecoin could react similarly to these assets if an ETF is approved. However, since DOGE is in the unique category of meme coins, the impact might be even greater, as this niche is notorious for explosive price gains, sometimes soaring by thousands of percentage points. By contrast, utility coins like Bitcoin and Ethereum typically see more modest, though still significant, price increases.
What Could Dogecoin’s Price Be Post-ETF Approval?
Currently, Dogecoin ranks as the 9th largest cryptocurrency by market cap, with a daily trading volume of $1.5 billion—approximately 5.11% of Bitcoin’s total daily volume of $30 billion, according to CoinGecko data. If we consider that DOGE could capture 5.11% of Bitcoin ETF’s total trading volume (which is $21.15 billion), that equates to about $1.08 billion.
At current prices, it would take roughly $200 million in trading volume to raise DOGE’s price by 1%. Therefore, if DOGE matches 5.11% of Bitcoin’s ETF volume, its price could surge by 440%, reaching approximately $0.7371—just above its previous all-time high.
While past trends from BTC and ETH post-ETF approval indicate that Dogecoin’s price could go either way, Dogecoin enjoys a passionate, longstanding community that sets it apart. Furthermore, support from high-profile figures like Elon Musk and the possibility of a future U.S. government agency dubbed the “Department of Government Efficiency (D.O.G.E.)” could send the price soaring beyond $0.7371, potentially pushing it well past the $1 threshold. With its circulating supply of 146 billion DOGE, such a surge would place its market cap around $146 billion, positioning Dogecoin as the third-largest cryptocurrency in the world.
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