Dogecoin Price Plummets: What’s Driving the Downtrend?

Dogecoin Price Slump Continues Amid Crypto Market Turmoil

Dogecoin Price– Dogecoin (DOGE) saw a sharp decline in its Total Value Locked (TVL) in DeFi protocols, reaching its lowest point since 2023. According to data from DeFi analytics platform DeFiLlama, DOGE’s TVL dropped to $2.72 million, signaling a bearish shift in investor sentiment and reduced liquidity within Dogecoin’s decentralized finance ecosystem. This decline follows the broader market downturn triggered by the “Black Monday Sell-Off,” which saw significant price drops across major cryptocurrencies, including popular memecoins.

As panic gripped the crypto market, widespread sell-offs and a surge in bearish sentiment led to significant price drops, and Dogecoin (DOGE) was no exception. A recent report from U.Today highlighted a large 300 DOGE transfer, which was interpreted as a potential sell-off maneuver. At press time, Dogecoin’s price had fallen by 23.78% over the last month, dropping to around $0.15, making it one of the biggest losers of the day. The DOGE-based DeFi ecosystem also suffered, with the SoSo Value Indexes, a Dogecoin-focused DeFi index, experiencing a 26.37% decline.

Other Memecoins Suffer Amid Market Correction, Except for Pepe

Dogecoin (DOGE) wasn’t the only memecoin to face a downturn. Shiba Inu (SHIB) saw a 10.09% drop over the past 24 hours. However, an exception to this trend was Pepe (PEPE), which gained 3.49% during the same period. Despite the slumping TVL and price, Coinglass data reveals a 68.62% increase in Dogecoin liquidations over the past 24 hours, indicating heightened volatility in the market.

While some investors have been exiting Dogecoin positions, others seem to be adjusting their strategies, perhaps with the long-term potential of the memecoin in mind. Even amid market uncertainty, there remains cautious optimism regarding Dogecoin’s prospects, although its DeFi ecosystem has experienced significant pressure. As of now, investors are closely watching for any signs of a potential reversal in the market trend.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.