Dogecoin (DOGE) is underperforming its top-ranking rivals, having fallen over 6% in the last 24 hours to trade at $0.226.
What to know:
Dogecoin is still in a bull market correction after its 525%-plus rally between August 2024 and December 2024.
The top memecoin established its second-highest price peak of $0.484 in December but has declined by more than 50% since.
DOGE/USD weekly price chart. Source: TradingView
DOGE falls alongside other memecoins
Dogecoin’s declines today are part of a broader bearish sentiment in the memecoin sector.
Key takeaways:
Shiba Inu (SHIB), the second largest memecoin by market capitalization, was down 5.60% over the last 24 hours to trade at $0.0000151.
Ethereum-based Pepe (PEPE) has dropped by approximately 7.25% over the same period.
Top memecoins’ performance. Source: CoinMarketCap
Memecoin market cap. Source: CoinMarketCap
The risk-off mode comes amid a series of rug-pull scams in the memecoin market.
Key points:
Onchain investigator ZachXBT reveals that North Korea’s Lazarus Group is likely behind some of the recent memecoin rug pulls on Solana.
Investors who suffered losses in these rug pulls may be exiting meme tokens altogether.
Memecoins thrive on hype and optimism, but a wave of scams can turn sentiment bearish.
This could reduce speculative capital flowing into Dogecoin.
Dogecoin network activity is declining
DOGE’s price decline today coincides with a sharp drop in network activity, which signals waning user engagement and reduced demand.
What to know:
Dogecoin’s whale transaction count (>1 million), at 66 in February, is now the lowest in four months.
DOGE whale transaction count, transaction volume, and daily active addresses. Source: Santiment/Muhabbit News
Dogecoin’s transaction volumes have declined simultaneously, i.e. less DOGE demand for transfers, payments, or trading.
When transaction volumes drop, it often means fewer people are buying or moving DOGE, leading to weaker price support.
Related: Bitcoin, top altcoins are ripping attention from memecoins: Santiment
Declining Dogecoin OI and funding rates
DOGE’s bearish performance on Feb. 24 has been preceded by a…
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