The price of the popular meme coin Dogecoin has slid to $0.31, representing a decline of nearly a quarter of its value compared to last week.
Meanwhile, bitcoin, the world’s largest cryptocurrency by market cap, dropped to a price of around $95,000 on Sunday, after reaching a new all-time high of $108,000 last week.
Recently, Dogecoin plummeted to its worst price in over a month on Friday, reaching a low of $0.267. However, the meme coin is still seeing a 233% growth over the last 12 months.
With the announcement of Dogecoin booster Elon Musk’s appointment to the so-called “Department of Government Efficiency” – famously abbreviated “DOGE” – there is speculation that the meme coin may enjoy spectacular growth during a Donald Trump presidency.
Meme coins, in general, have seen a marked upsurge in value since Trump’s November victory. The market capitalization for meme coins reached more than $66 billion since November 6, representing its highest level in seven months.
“Meme coins are the sugar rush of the crypto world — fun, flashy, and easy to digest, but they’re not exactly the healthiest long-term play," Ben Kurland from DYOR Labs recently told TheStreet Crypto. "That said, they serve an important role as a gateway for younger investors.”
“The challenge is turning those first-time dabblers into educated participants who graduate from meme coins to projects with real utility," Kurland added. "Meme coins might bring people to the table, but it’s up to the broader crypto community to keep them engaged."
" Meme coins and community-driven projects will likely thrive in a more permissive environment, but the real evolution will be about legitimacy," Kurland said. "The days of “pump-and-dump” meme coins dominating headlines could give way to community tokens with actual utility. Regulators might even embrace them as a way to engage younger investors, which would be the ultimate irony — a once-dismissed market segment becoming the poster child for crypto adoption.