DOGE (Dogecoin) increased by 2.76% in the last 24 hours, currently trading at $0.15

Gate News Bot Message, January 4th, according to CoinMarketCap data, as of press time, DOGE (Dogecoin) is trading at $0.15, up 2.76% in the past 24 hours, reaching a high of $0.15 and a low of $0.12, with a 24-hour trading volume of $1.724 billion. The current market capitalization is approximately $24.575 billion, an increase of $0.66 billion from yesterday.

Dogecoin is an open-source peer-to-peer digital currency driven by blockchain technology, operating as a highly secure decentralized system. As an unexpectedly born crypto movement, Dogecoin is known for its unique community spirit and the informal slogan “Do Only Good Every Day.” The core value of Dogecoin lies in its practicality and ease of use as a currency—transaction fees are extremely low, making it one of the few cryptocurrencies used as real money since its inception. The project has a vibrant community dedicated to mutual support, spreading cryptocurrency knowledge, charitable donations, and community building.

Important recent news about DOGE:

1️⃣ End-of-year liquidity tightening and whale selling pressure gradually easing

The end-of-year factors peaked in late December, with whale wallets selling approximately 150 million DOGE over the past five days, continuously limiting the rebound space in the spot market. However, at the beginning of 2025, this selling pressure showed a clear shift. On-chain activity rapidly declined, indicating the selling pressure release is nearing completion. The total tokens spent across the network shrank from about 250 million to less than 100 million, a decrease of over 60%, suggesting the extreme selling pressure may have been largely released. Historical experience indicates that a rapid cooling of on-chain activity often signals the completion of short-term selling pressure release, providing a foundation for subsequent rebounds.

2️⃣ Short-term funds exiting and long-term holders mildly increasing create structural differentiation

The proportion of short-term speculators holding for 1 week to 1 month dropped significantly from 7.73% at the end of November to 2.76% in late December, a decrease of over 64%. This large-scale early withdrawal of short-term funds effectively alleviated panic selling pressure near support levels. In contrast, long-term holders (holding for 1 to 2 years) increased their share slightly from 21.84% to 22.34%. Although the increase is modest, it is generally seen as an early signal of diminishing downside risk. This divergence in bullish and bearish structures indicates that market participants’ confidence is adjusting, laying the groundwork for price stabilization.

3️⃣ Increased activity in derivatives market and balancing with Gate platform risk management framework

Dogecoin futures trading volume surged approximately 53,000%, reaching $260 million, with daily trading volume soaring to 639 million DOGE, about double the average level. The significant increase in derivatives positions reflects heightened market expectations of future volatility. Gate platform’s ETF trading volume in the past 30 days is about $5 billion, supporting 256 tokens, including leveraged tokens like DOGE5L. The platform employs daily and irregular rebalancing mechanisms, triggering instant rebalancing during sharp market fluctuations to automatically bring leverage back to the target level, effectively maintaining leverage within a healthy and stable range, providing a controlled trading experience for market participants. This system design helps prevent excessive leverage fluctuations from negatively impacting spot prices amid active derivatives trading.

4️⃣ Shift in capital allocation logic towards long-term structural suppression of meme coins

Market saturation is changing capital allocation strategies. AI tokens are gradually becoming core to the crypto market. For example, AI public chain projects like Bittensor (TAO) still maintain a market cap above early 2025 levels, while DOGE has fallen about 50% in the same period. This market divergence reflects investors re-evaluating the differences between “long-term value” and “short-term speculation.” AI tokens demonstrate stronger resilience in volatility and capital retention, creating structural suppression of meme coins like DOGE. However, DOGE’s current rebound momentum indicates that after portfolio adjustments, the market is beginning to pay attention to rebound opportunities in high-beta assets.

This message is not investment advice. Investors should be aware of market volatility risks.