Dogecoin Price Plummets 80% After Major ETF Investment Crash — Market Reacts Sharply
Overview of Dogecoin’s new ETF performance
Dogecoin’s new ETF experienced a significant decrease in momentum after the first day, with inflows dropping from $1.8 million to $365,420 on the second day. The ETF, GDOG by Grayscale, started strong but quickly lost traction, with the second day failing to attract new buyers.
Impact on trading numbers and Dogecoin’s price
Trading numbers for the meme coin revealed a decline in interest, with GDOG trading below $400,000 on Nov. 26. Despite a slight increase in net assets due to Dogecoin’s price rise, the ETF struggled to generate substantial demand. This lack of interest reflected in Dogecoin’s price, which remained around $0.152 without any significant recoveries.
Implications for the ETF and Dogecoin’s market
The ETF’s debut did not spark a new wave of interest in Dogecoin, indicating that the listing was more of a short-lived event than a significant turning point. The 80% drop in inflows highlighted the fragility of interest and the potential for quick fading when the underlying asset lacks a strong foundation. As a result, the ETF is currently following the price trend of Dogecoin, offering limited appeal to investors.