Dogecoin Trading Volume Collapses 90% Amid Market Turmoil

ByMason Drake

Dogecoin has experienced a devastating 90% collapse in trading volume since November 2024, coinciding with a price drop of more than 50% in under six months. The once-vibrant meme coin now struggles with daily trading volumes below $5 billion, down from highs above $60 billion, as the broader cryptocurrency market reels from a $1.3 trillion selloff triggered by President Trump’s tariff announcements.

Sunday’s market action brought renewed pain for Dogecoin investors, with over $4 million in liquidations – more than 80% from long positions – as bears maintained control of the market, according to data from TradingView. The meme coin’s struggles mirror the broader crypto market but with significantly amplified losses compared to Bitcoin’s 25% decline.

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Volume Signals Deepening Troubles

Dogecoin’s daily trading volume hit record levels exceeding $60 billion on November 13, 2024, but has since experienced a precipitous decline. By late March 2025, daily volume had fallen below $3 billion, representing a staggering 95% reduction in market activity.

April has shown minimal improvement, with daily trading averaging below $5 billion, suggesting continued investor disinterest despite lower prices. This persistent low volume is particularly concerning for market analysts, as it indicates a lack of buying pressure that could support price recovery.

“The volume collapse we’re seeing in Dogecoin is often a precursor to extended downtrends,” explained a cryptocurrency market specialist at BTC Markets. “Without renewed investor interest generating higher volumes, the path of least resistance remains downward, especially for highly speculative assets like meme coins.”

Broader Market Crisis

Dogecoin’s troubles come amid a severe cryptocurrency market correction, with Bitcoin plummeting below $77,000, down more than 10% from its high of almost $90,000 last week. Other major cryptocurrencies including Ethereum, XRP, and Solana have experienced even steeper declines as reported by Forbes.

The synchronization between cryptocurrency and traditional market declines has strengthened following Trump’s “Liberation Day” tariff announcements. These tariffs have already triggered the stock market’s worst crash since 2010, with cryptocurrency markets facing similar or greater pressure.

Geoffrey Kendrick, Standard Chartered Bank’s head of crypto, provided a troubling assessment of the situation: “Sometimes crypto movements on Sunday tell you what stocks are going to do Monday. If that is the case, Monday could be ugly.” This observation has investors across asset classes bracing for potential further declines.

Contrarian Bullish Case

Despite overwhelming bearish indicators, some analysts maintain surprisingly optimistic outlooks for Dogecoin. Crypto analyst Trader Tardigrade has identified chart patterns similar to formations seen before major rallies in 2016 and 2021.

“Dogecoin is about to Surge again,” the analyst claimed in a recent post on X (formerly Twitter). The contrarian analysis suggests potential for an extraordinary 1,500% price increase, targeting levels as high as $2.10 – a prediction that stands in stark contrast to current market sentiment.

This bullish perspective is based on historical cycle analysis, noting that Dogecoin has previously experienced explosive growth following periods of low volume and price consolidation. However, most market participants remain skeptical given the severity of current market conditions.

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Market Response Factors

Analysts point to several potential catalysts that could reverse Dogecoin’s fortunes. “A shift in Trump’s tariff stance or emergency Federal Reserve intervention could stabilize markets and potentially benefit high-beta assets like Dogecoin disproportionately,” noted Charlie Sherry of BTC Markets.

Traders have already increased bets that the Federal Reserve will be forced to cut interest rates to prevent a U.S. recession. Such monetary easing could provide support for risk assets, potentially benefiting cryptocurrencies that have been hardest hit in the recent downturn.

For Dogecoin specifically, historical price movements suggest the meme coin could experience more dramatic upside if market sentiment shifts positively. However, without renewed trading volume, any recovery attempts may lack the momentum needed for sustainable price appreciation.

As cryptocurrency markets navigate this period of heightened volatility, Dogecoin’s performance serves as a barometer for investor appetite for speculative digital assets. Whether the popular meme coin can recapture its former trading activity remains one of the key questions facing the cryptocurrency community in the weeks ahead.

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Mason Drake

Mason has been covering the exciting and fast-pasted crypto space since the early days of Bitcoin. From decentralized finance to NFT trends, he provides deep analysis on where the industry is headed and what it means for investors.

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