Dogecoin, the seventh largest cryptocurrency by market cap, is currently experiencing a slowdown following a momentous week of significant gains. As per CoinGecko data, the coin is currently trading for $0.38 per coin, marking a 0.5% drop over the last 24 hours and a 2.5% drop since last Wednesday. Although this may seem like a minor dip, it is a significant shift from the frenzied action of the previous week.
Just over a week ago, Dogecoin reached a three-year high of $0.43 per coin and returned to the $0.40 mark on Tuesday as Bitcoin reached another all-time high. However, the past week has been relatively subdued for Dogecoin compared to its previous performance.
Other canine-themed coins, including Shiba Inu (SHIB), Bonk (BONK), and Dogwifhat (WIF), are also experiencing a dip, with BONK being the only one still in the green over the past seven days. However, a new dog-themed token, Just a Chill Guy (CHILLGUY), has managed to rise above the rest despite the overall market downturn. The Solana-based meme coin, inspired by a viral TikTok video, has surged by 400% in the past day, reaching $0.41 with a market cap of $408 million.
The slowdown in Dogecoin’s momentum can be attributed to several factors. Meme coins like Dogecoin are notoriously volatile, and a pullback after a rally is a common occurrence. Much of Dogecoin’s momentum is driven by hype and attention. As the buzz surrounding Donald Trump’s election victory and Elon Musk’s proposed Department of Government Efficiency (D.O.G.E.) fades, the positive impact on Dogecoin’s price may also wane.
Jake Ostrovskis, an OTC trader at Wintermute, suggests that Dogecoin’s current trend is not isolated. Many altcoins are experiencing similar trends. “We’re seeing relative weakness in the wider altcoin space,” Ostrovskis explains. “The outperformance of Bitcoin is pulling liquidity from ‘alts.’ These markets are also volatile by nature, so pullbacks are part of normal trading.”
BIT Mining’s Chief Economist, Youwei Yang, points to potential shifts around Dogecoin mining—including “merged mining” with Litecoin (LTC)—as a possible reason for the dip. Miners may be selling their holdings while the price is high. Yang advised miners to cash in while DOGE is up, warning that this level of profit might not last.
Despite the slowdown, Dogecoin has still made significant gains over the past month, surging over 163% in 30 days according to CoinGecko data. Much of this resurgence can be attributed to Tesla and SpaceX CEO Elon Musk, who has been promoting Dogecoin on Twitter since 2019. Musk’s regular posts have helped Dogecoin amass a cult following, causing its market cap to surge. Currently, Dogecoin’s market cap stands above $55 billion, a figure that has increased since Musk became an outspoken supporter of President-elect Donald Trump.
