$DOGE If Dogecoin fails to break into a new all-time high during this bull cycle, it could gradually trend downward afterward.
The reason is that Dogecoin has a continuous inflationary supply model, with new coins issued every year, creating persistent sell pressure and dilution.
If market demand does not consistently surpass this inflationary and selling pressure, the price may gradually weaken over time. As confidence declines, prices fall, holders sell off, and demand further decreases, this could potentially lead to a negative feedback loop — sometimes referred to as a “death spiral.”
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
$DOGE If Dogecoin fails to break into a new all-time high during this bull cycle, it could gradually trend downward afterward.
The reason is that Dogecoin has a continuous inflationary supply model, with new coins issued every year, creating persistent sell pressure and dilution.
If market demand does not consistently surpass this inflationary and selling pressure, the price may gradually weaken over time.
As confidence declines, prices fall, holders sell off, and demand further decreases, this could potentially lead to a negative feedback loop — sometimes referred to as a “death spiral.”