Dogecoin (DOGE) flounders in unlimited supply trap...Miners 'dump' immediately upon receipt

▲ Bitcoin (BTC), Dogecoin (DOGE)

The competition between Dogecoin (DOGE) and Bitcoin (BTC) is being decided more by their supply structures than by their price charts.

According to crypto media outlet Benzinga on June 20 (local time), 5 billion DOGE are newly issued annually for Dogecoin. In contrast, Bitcoin's total supply is capped at 21 million BTC. Benzinga highlighted the difference between the two assets as a clash of supply models. While the controversy over Dogecoin's unlimited supply has an exaggerated aspect, the absence of a hard cap is seen as a burden for long-term investors.

Dogecoin's annual issuance is fixed at 5 billion DOGE according to its block reward structure. Based on the current circulating supply of 170.4 billion DOGE, the inflation rate is approximately 3.4%. As the supply increases, the inflation rate decreases each year. It is projected to fall below 2% by the mid-2030s, similar to the Federal Reserve's inflation target. Over the past decade, the annual growth rate of the dollar M2 money supply was 6-7%. While Dogecoin's supply growth rate is lower than that of fiat currency, it lags in scarcity compared to Bitcoin, which halves its mining reward every four years.

The biggest burden is structural selling pressure. Miners receive 5 billion DOGE annually as rewards. Benzinga analyzed that a significant number of miners immediately sell their rewarded DOGE to cover operational costs. This volume leads to an annual selling pressure of approximately $430 million. For the price to be maintained, new demand of the same magnitude is required each year. Bitcoin does not face the same burden. Ethereum (ETH) can enter a deflationary state through its fee burning mechanism when network activity is high.

However, Dogecoin's weakness could turn into a strength if payment demand increases. Benzinga suggested that if X Money adopts Dogecoin as its primary payment rail, the supply debate could change. Elon Musk's platform boasts 500 million monthly users. It is analyzed that if a payment network capable of processing millions of daily micropayments is formed, it could naturally absorb the 5 billion DOGE newly issued annually.

The key is an unconfirmed demand catalyst. Benzinga stated that as of June 18, the official integration of Dogecoin into X Money has not been confirmed. However, Dogecoin's institutional legal status was strengthened when the U.S. Securities and Exchange Commission (SEC) classified it as a commodity in March 2026. With two spot ETFs also listed, the infrastructure is deemed to be in place. Ultimately, Dogecoin's decisive factor is not the absence of a supply cap. The core question is whether strong payment demand, capable of absorbing 5 billion DOGE annually, will actually emerge.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*