Dogecoin Heading for $1 and Stablecoins in Transformation: Galaxy Research Predictions
- Dogecoin could reach $1 by 2025, says Galaxy Research.
- Competition threatens Tether’s leadership in the stablecoin market.
- USDC and DeFi gain traction with balance rewards.
Galaxy Research, the research division of Galaxy Digital, has shared bold predictions for the cryptocurrency market in 2025. The focus is on Dogecoin (DOGE) and changes in the stablecoin sector, with significant impacts expected for both segments. The report suggests that DOGE, a popular memecoin, could reach the $1 mark for the first time.
At the time of publication, the price of DOGE was quoted at US$0,3846 with an increase of 1.9% in the last 24 hours.
Alex Thorn, head of research at Galaxy, has stated that Dogecoin could see a 170%+ rally from its current price. If this happens, the memecoin will reach a market cap of approximately $100 billion, cementing its relevance among the largest cryptocurrency projects. “Dogecoin will finally hit $1, with the oldest and largest memecoin reaching a $100 billion market cap,” Thorn noted.
Dogecoin will finally hit $1, with the world's largest and oldest memecoin touching a $100bn market cap. However, the Dogecoin market cap will be eclipsed by the Department of Government Efficiency, which will identify and successfully enact cuts in amounts exceeding Dogecoin's… pic.twitter.com/xcwRHhpMTn
— Galaxy (@galaxyhq) January 2, 2025
Dogecoin is currently trading at $0,37, up 11,7% in the last 24 hours. With a market cap of $55,47 billion, it ranks seventh among the largest digital assets.
Meanwhile, Charles Yu, also from Galaxy Research, predicts significant changes in the stablecoin market. He suggested that Tether (USDT), the dominant stablecoin in the space, could see its share fall below 50% due to the rise of alternatives offering higher yields. These include BlackRock’s BUIDL, Ethena’s USDe and Circle’s USDC.
According to Yu, platforms like Coinbase that offer rewards for balances held in USDC could attract Tether users, fostering the growth of the DeFi ecosystem. “USDC rewards paid on Coinbase Exchange and Wallet balances will be a strong draw, boosting the DeFi ecosystem and enabling new business models in the fintech sector,” he explained.
In response to this growing competition, Tether may adopt strategies to remain relevant. Possible actions include passing on revenues from collateral reserves to USDT holders and launching new financial products, such as delta-neutral stablecoins, aimed at maximizing returns.
These predictions reinforce the ongoing transformations in the cryptocurrency market, with Dogecoin gaining ground as a relevant memecoin and the stablecoin market adapting to new demands and opportunities. The combination of innovation and competition promises to reshape the industry in the coming years, attracting both newcomers and experienced investors.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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