Dogecoin and Meme Coins Decline Amid Fed Concerns

Dogecoin (DOGE) experienced a significant decline of 12.4% within the last 24 hours, continuing a trend of market downturn spurred by the Federal Reserve's recent economic assessments.

The price of Dogecoin has fallen to $0.31, while trading activity surged by 67%, reaching $10.25 billion. This indicates that investors are adjusting their positions, with Dogecoin now showing a 35% decrease from its peak price of $0.47 in 2024.

Despite its recent slide, Dogecoin maintains a market capitalization of $46.6 billion, securing its status as the seventh-largest cryptocurrency.

Comments from Fed Chair Jerome Powell regarding inflation and rising unemployment projections for 2025 created turbulence in the market. His hawkish stance raised concerns about sustained higher interest rates, affecting various risk-sensitive assets, including meme coins that often react sharply to economic signals.

Additionally, Dogecoin's downturn was marked by significant outflows, particularly on the Binance exchange, where over $83 million left the platform. This was accompanied by a 74% increase in trading volume, which totaled $1.85 billion, as reported by CoinGlass across major exchanges.

Liquidation data reflects concentrated selling in the market, with most exchanges showing negative net flows except for Bybit and Bitstamp, indicating this is a wider market trend rather than isolated to any single exchange.

Trading patterns across exchanges suggest ongoing selling pressure from late November to December. The DOGE/USDT pair on Binance and OKX faced strong selling, dropping approximately 23% in just one week.

The general downturn in the crypto market has impacted other digital assets as well, including Ethereum, XRP, and Solana, which have all seen double-digit losses.

Furthermore, DOGE's decline aligns with Bitcoin dropping below the $100,000 mark, highlighting that meme coins have typically faced sharper declines compared to their crypto counterparts, as noted by sector data from CoinGecko.

Interestingly, the only standout performer in recent weeks has been Fartcoin, which has skyrocketed by 71%. Its growing popularity has even caught the attention of mainstream media, with a feature on CBS' The Late Show with Stephen Colbert.

Data from CoinGecko also shows that other recently popular Solana meme coins like MOODENG and CHILLGUY have seen their values drop by 38% and 43%, respectively. Meanwhile, Peanut the Squirrel (PNUT) decreased by 46%, but remains above a market cap of $672 million.

In addition to Dogecoin, other dog-themed tokens also followed suit. Shiba Inu (SHIB) saw a decline of 23.3% during the same period, while BONK experienced a drop of 22.5%.

Despite these recent setbacks, Dogecoin's current price illustrates a remarkable journey, having evolved from its modest origins. Nevertheless, it remains 57% below its all-time high of $0.73 recorded during the global cryptocurrency boom in 2021.

Edited by Sebastian SinclairDogecoin, Crypto, Inflation