Polymarket traders are split on Dogecoin's (CRYPTO: DOGE) trajectory as Inauguration Day approaches, with a 41% chance for DOGE to hit the 69 cents milestone by Jan. 20 next year.
This represents a slight dip in confidence from the 53% chance on Nov.23.
With over $40,000 in trading volume on the market, the debate reflects mixed sentiment on Dogecoin's near-term prospects.
Dogecoin has surged 175% in the past month, with its market capitalization rising to $57.8 billion, overtaking luxury automaker Porsche's valuation of $56.1 billion.
Over the past year, Dogecoin has outperformed the car maker, rising 395%, while Porsche's market cap has dropped more than 34% due to weakening performance.
The rise has been fueled by a combination of retail enthusiasm, institutional adoption and high-profile endorsements.
Elon Musk's influence has been a significant factor in Dogecoin's resurgence.
His continued social media endorsements and his involvement in creating the Department of Government Efficiency (DOGE), a federal agency focused on reducing government spending, have stoked investor enthusiasm.
The agency's acronym, which coincidentally matches Dogecoin's ticker symbol, has been seen by some retail investors as a bullish signal for the token's future.
Musk's indirect backing has amplified Dogecoin's popularity among retail and institutional investors alike.
“Global enthusiasm for Dogecoin has reached unprecedented levels,” said a market analyst. “It's clear that Musk's influence remains a critical driver.”
Why It Matters: Institutional backing for Dogecoin has also increased with the launch of the first DOGE-based exchange-traded product (ETP) by Valour, a subsidiary of DeFi Technologies, on November 26.
The DOGE ETP provides institutional investors a new way to gain exposure to the cryptocurrency, adding legitimacy to an asset once dismissed as a mere meme.
Despite its strong performance, Polymarket bettors reflect skepticism, with 59% doubting the token's ability to hit 69¢ by Inauguration Day.
Additionally, the Market Value to Realized Value (MVRV) ratio for Dogecoin, which measures the current market valuation against the average acquisition cost, suggests potential overvaluation.
A high MVRV ratio often precedes a price correction, adding another layer of uncertainty to Dogecoin's outlook.
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