Dogecoin (DOGE) Price Prediction: Global M2 Trend Suggests Major Upside Potential

Crypto analyst KrissPax recently pointed out that “Dogecoin is way behind the Global M2 Money Supply trend — but it can catch up in no time.” This observation highlights a significant disconnect: despite massive expansions in worldwide money supply, Dogecoin has yet to reflect this fundamental shift in market conditions.

The chart backing this claim tells a clear story: while global M2 (shown in yellow) has climbed to new peaks, DOGE/USDT sits relatively flat around $0.195, up just 2.67%. The visual evidence demonstrates a major divergence between these two metrics. The global M2 money supply has surged dramatically, yet Dogecoin’s price remains muted and compressed.

This gap matters because historically, when global money supply grows, capital flows into riskier assets like crypto. The fact that DOGE hasn’t moved much despite rising liquidity suggests it might be undervalued. Throughout previous cycles, we’ve seen strong correlations between M2 expansion and crypto bull runs. When central banks inject liquidity, investors search for higher-yielding opportunities, and speculative assets like Dogecoin typically benefit from these inflows.

This observation highlights both potential and caution. If liquidity keeps expanding, DOGE could see a sharp price correction upward. But timing is everything — if money tightens or investors get nervous, that catch-up moment might take longer than expected. The risk-reward proposition depends heavily on global monetary policy and whether central banks continue their accommodative stance.

Many traders see this gap as an accumulation opportunity, a chance to position before fundamentals catch up with price. When the liquidity wave finally hits crypto markets, repricing can happen fast, similar to DOGE’s explosive runs in previous cycles where the token gained hundreds of percent in weeks. The velocity of these moves tends to catch most participants off guard.

Dogecoin has always been more sensitive to liquidity conditions than traditional metrics like network usage or developer activity. Unlike cryptocurrencies that derive value from utility, DOGE’s price movements are driven by market sentiment and available capital. When money flows freely, DOGE reacts with sudden volatility and momentum-driven rallies that far exceed moves in fundamentally-oriented cryptocurrencies.