Dogecoin (DOGE) experienced a decrease of 12.4% in the past 24 hours, mirroring the broader market decline caused by the Federal Reserve’s recent economic outlook.
The meme coin has now fallen to $0.31, while trading volume has surged by 67% to $10.25 billion as holders repositioned their investments. Currently, it is down 35% from its peak of $0.47 in 2024.
Despite the pullback, Dogecoin’s market capitalization remains at $46.6 billion, maintaining its position as the seventh-largest cryptocurrency.
On Wednesday, Powell’s hawkish comments regarding higher-than-expected inflation and unemployment projections for 2025 sent shockwaves through risk assets, with cryptocurrencies bearing the brunt of the immediate market reaction.
The Fed’s forecast, which hinted at longer periods of higher interest rates, impacted speculative assets, including meme coins. These coins typically exhibit heightened sensitivity to macroeconomic signals.
The decline in Dogecoin’s price coincided with significant outflows, especially on Binance, where over $83 million left the market. At the same time, trading volume spiked by 74% to $1.85 billion, according to data aggregated from major exchanges by CoinGlass.
The liquidation data reveals concentrated selling pressure, with negative net flows across most major exchanges, except for Bybit and Bitstamp. This suggests a broader market exodus rather than exchange-specific activity.
Trading patterns across exchanges indicate persistent selling from late November through December, with the DOGE/USDT pair on Binance and OKX experiencing a price drop of approximately 23% over the past week.
In a broader cryptocurrency market decline, other assets such as Ethereum, XRP, and Solana have also suffered double-digit losses.
DOGE’s decline coincides with Bitcoin falling below $100,000 this week. However, meme coins generally experience steeper drops compared to other cryptocurrencies, according to sector data from CoinGecko.
Only Fartcoin has shown positive numbers in the past week, gaining 71%. True to its name, this meme coin has continued to accumulate and has increased by 323% over the month.
Fartcoin has also gained significant attention from mainstream media, with a mention on CBS’ The Late Show with Stephen Colbert in a piece by Decrypt.
Data from CoinGecko indicates that recently popular Solana meme coins, such as MOODENG and CHILLGUY, have entered the mid-cap segment, with their prices declining by 38% and 43%, respectively. Peanut the Squirrel (PNUT) has also dropped by 46%, although its market cap remains above $672 million.
Other dog-themed tokens have followed DOGE’s decline, with Shiba Inu (SHIB) dropping by 23.3% and BONK falling by 22.5%.
Despite the sharp correction, DOGE’s current price represents a remarkable journey from its humble beginnings, although it is still 57% below its peak of $0.73 achieved during the 2021 bull market.
Edited by Sebastian Sinclair.