Dogecoin (DOGE) has dropped 12.4% over the past 24 hours as the overall market continues to decline, due to the Federal Reserve’s latest economic outlook.

The meme coin fell to $0.31, while trading volume jumped 67% to $10.25 billion as holders shifted their positions. It is now down 35% from its 2024 high of $0.47.

Despite the drop, Dogecoin's market capitalization remains at $46.6 billion, maintaining its position as the seventh-largest cryptocurrency.

Powell's tough comments on inflation forecasts and higher-than-expected unemployment for 2025 shocked risk assets on Wednesday, with cryptocurrencies being the hardest hit by the market's immediate reaction.

The Fed's forecast, implying that interest rates will rise for a longer period, has caused market participants to fear, impacting speculative assets, including cryptocurrencies, which are often more sensitive to macroeconomic signals.

The price of Dogecoin fell in tandem with significant outflows, particularly on Binance, where over $83 million exited the market while trading volume surged 74% to $1.85 billion, data from CoinGlass aggregated from major exchanges shows.

Liquidation data shows concentrated selling pressure, with net outflows on most major exchanges except Bybit and Bitstamp, indicating a broader market exit rather than exchange-specific activity.

The trading pattern across exchanges shows continuous selling activity from late November to December, with the DOGE/USDT pair on Binance and OKX affected as the price dropped approximately 23% in the past week.

The larger decline of cryptocurrency has caused other assets like Ethereum, XRP, and Solana to suffer double-digit losses.

The decline of DOGE coincided with Bitcoin dropping below $100,000 this week, although industry data from CoinGecko shows that meme coins overall have fallen more sharply than other cryptocurrencies.

Only Fartcoin showed positive numbers in the past week, rising 71%. True to its name, this meme coin has continuously accumulated and increased 323% in a month.

Fartcoin has also attracted a lot of mainstream media attention, as an article by Decrypt about this coin was mentioned on CBS's The Late Show with Stephen Colbert.

Data from CoinGecko indicates that the most popular recent meme coins on Solana, such as MOODENG and CHILLGUY, have dropped into the mid-cap segment, with prices decreasing by 38% and 43%, respectively. Peanut the Squirrel (PNUT) also fell 46%, although its market cap remains at $672 million.

Other dog-themed tokens also followed the downward trend of DOGE. Shiba Inu (SHIB) fell 23.3% in a day, while BONK dropped 22.5%.

Despite the significant correction, the current price of DOGE still shows a remarkable journey from its humble beginnings, although it remains 57% lower than the peak of $0.73 reached during the bullish market of 2021.

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