The recent volatility and selling pressure in the memecoin market has caught my attention, with Dogecoin (DOGE) in particular exhibiting higher volatility and risk. While Bitcoin (BTC) has remained relatively stable after a brief dip, memecoins have not rebounded, a phenomenon that reveals the market sensitivity and volatility of memecoins.
When the Bitcoin market was slightly volatile, the memecoin index (including DOGE, SHIB, etc.) came under significant selling pressure. According to data, the cumulative trading volume of meme coins has dropped sharply, especially the trading volume of USDT on Binance dropped to -$98 million. This shows that the meme coin has encountered strong selling pressure in the past 24 hours, which in turn led to sharp fluctuations in the index. This selling pressure often aggravates market uneasiness, leading to the risk of further downside in memecoin prices.
DOGE is particularly notable, with its current Sharpe ratio lower than that of most mainstream meme coins, showing lackluster risk-adjusted returns. This risk ratio means that while DOGE may bring significant benefits, the risks cannot be underestimated. For investors with a lower risk appetite, this volatility may be a turn-off, attracting investors with a higher risk tolerance instead. Recent trading activities also show that DOGE’s trading volume increased rapidly at the end of the year, and its trading dominance is expected to be further consolidated.
If the market stabilizes in the coming volatility, DOGE's dominance and continued active trading volume may provide it with new upside. I will keep a close eye on DOGE's trading trends, especially if there is further institutional buying or market confidence increases, DOGE may reach new highs and solidify its leadership position in the meme coin market. #加密货币总市值破3万亿美元 $DOGE