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The meme coin has dropped to $0.31, while trading volume surged 67% to $10.25 billion as holders repositioned their bags. It's now down 35% from its 2024 high of $0.47.
Despite the pullback, Dogecoin's market capitalization remains at $46.6 billion, maintaining its position as the seventh-largest crypto.
Powell's hawkish comments about higher-than-expected inflation and unemployment projections for 2025 sent shockwaves through risk assets on Wednesday, with crypto bearing the brunt of the immediate market reaction.
The Fed's forecast, which hinted at higher interest rates for longer—spooking market participants—impacted speculative assets, including meme coins, which typically show heightened sensitivity to macroeconomic signals.
Dogecoin's price decline coincided with significant outflows, particularly on Binance, where over $83 million exited the market while trading volume spiked 74% to $1.85 billion, data from CoinGlass aggregated across major exchanges shows.
The liquidation data reveals concentrated selling pressure, with negative net flows across most major exchanges except Bybit and Bitstamp, suggesting a broader market exodus rather than exchange-specific activity.
Exchange-wide trading patterns indicate persistent selling from late November through December, with the DOGE/USDT pair on Binance and OKX feeling the heat as prices fell approximately 23% over the past week.
A broader crypto dip has seen other assets, such as Ethereum, XRP, and Solana, bear double-digit losses.
DOGE’s decline coincides with Bitcoin's retreat below $100,000 this week, though meme coins generally have experienced steeper drops compared to other cryptos, sector data from CoinGecko shows.
Only Fartcoin has shown positive numbers for the past week, gaining 71%. True to its name, the meme coin has kept accumulating and is up 323% on the month.
Fartcoin has also gained a lot of mainstream media attention, with a Decrypt piece about it mentioned on CBS’ The Late Show with Stephen Colbert.
Data from CoinGecko indicates that the most recently popular Solana meme coins, such as MOODENG and CHILLGUY, have fallen to a mid-cap segment, with their prices declining by 38% and 43%, respectively. Peanut the Squirrel (PNUT) is also down 46%, though its market cap still tops $672 million.
Other dog-themed tokens followed DOGE's slide. Shiba Inu (SHIB) dropped 23.3% on the day, while BONK fell 22.5%.
Despite the sharp correction, DOGE’s current price represents a remarkable journey from its humble beginnings, though it remains 57% below its peak of $0.73 achieved during the 2021 bull market.
Edited by Sebastian Sinclair