Finance

Dogecoin’s Deep Dive: Why the Meme Coin Lagged Behind Bitcoin and Ethereum in the Market Crash

Dogecoin plummeted 23% after the crash, underperforming Bitcoin and Ethereum due to weak demand.

byAndres Castro

October 16, 2025, 5:07 PM

Illustration of a cryptocurrency symbol with a rising blue line graph in the background, suggesting increasing value.

The value of the cryptocurrency surges as indicated by the ascending blue line. By MDL.

Executive Summary

Dogecoin significantly underperformed Bitcoin and Ethereum following a market flash crash, trading 23% lower over seven days compared to their approximately 10% declines.

Experts attribute Dogecoin’s pronounced struggle to its heightened vulnerability to “sentiment whipsaws,” an “identity crisis” as it’s no longer a purely speculative asset, and competition from newer, more volatile meme coins.

Dogecoin continues to lack substantial real-world use cases, and past speculative boosts from Elon Musk, including potential integration on X, are absent in the current regulatory environment.

The Story So Far

Dogecoin’s significant underperformance stems from its heightened vulnerability to speculative market sentiment and a perceived “identity crisis,” as newer, more volatile meme coins attract “degen” traders seeking quick gains. This is compounded by its persistent lack of substantial real-world use cases and the diminishing impact of past boosts from figures like Elon Musk, making it less appealing to investors now prioritizing utility.

Why This Matters

Dogecoin’s significant underperformance during a recent market downturn, far exceeding losses seen by Bitcoin and Ethereum, underscores its heightened vulnerability to speculative selling and shifts in market sentiment. This struggle is exacerbated by an “identity crisis” as it faces intense competition from newer, more volatile meme coins attracting “degen” traders, while its persistent lack of substantial real-world utility and the diminishing impact of past influences like Elon Musk further challenge its ability to achieve future growth and find a clear purpose in the evolving cryptocurrency market.

Who Thinks What?

Maja Vujinovic, co-founder of FG Nexus, believes Dogecoin’s pronounced struggle stems from its heightened vulnerability to “sentiment whipsaws,” making it the first meme token to lose momentum and exhibit weaker “shock-resilience” during market fear due to speculative holders.

Jonathan Morgan, lead crypto analyst at Stocktwits, suggests Dogecoin is experiencing an “identity crisis,” as it is no longer the speculative asset it once was, with “degen” traders now gravitating towards newer, more volatile meme coins for quick-flip gains.

Vladislav Ginzburg, founder and CEO of OneSource, states that Dogecoin continues to lack substantial real-world use cases, a factor investors are increasingly prioritizing, and past speculation about Elon Musk integrating DOGE as a payment option on X is absent in the current regulatory environment.

Dogecoin significantly underperformed Bitcoin and Ethereum following a recent market flash crash, with the meme coin trading 23% lower over a seven-day period. This contrasts sharply with Bitcoin and Ethereum, which were both down approximately 10% in the same timeframe, indicating a deeper struggle for the ninth-largest cryptocurrency by market capitalization.

Market Performance Breakdown

DOGE was recently priced under $0.19, having recovered only slightly from a low of $0.18 after a broader market wipeout. In comparison, Bitcoin was trading at $108,042 and Ethereum at $3,878, showcasing their relative resilience.

Expert Analysis on Dogecoin’s Weakness

Maja Vujinovic, co-founder and digital assets CEO of Ethereum treasury firm FG Nexus, attributed Dogecoin’s pronounced struggle to its heightened vulnerability to “sentiment whipsaws.” She noted that when market fear prevails, meme tokens are often the first to lose momentum and exhibit weaker “shock-resilience” due to more speculative holders and diminished on-chain demand.

Jonathan Morgan, lead crypto analyst at Stocktwits, suggested that Dogecoin is grappling with an “identity crisis.” He stated that the coin is “not the speculative asset it used to be in crypto,” particularly as it now has its own digital asset treasury in the stock market, questioning its place within the current meme coin culture.

Morgan also highlighted that “degen” traders seeking quick-flip gains are increasingly looking to newer, highly volatile meme coins. Despite Dogecoin’s historical tendency for wild swings, these newer tokens are perceived to offer better returns compared to the comparatively tamer DOGE.

Lack of Use Cases and Elon Musk’s Influence

Vladislav Ginzburg, founder and CEO of software company OneSource, reiterated that Dogecoin continues to lack substantial real-world use cases, a factor that investors are increasingly prioritizing in the cryptocurrency industry. He recalled past speculation that Elon Musk might integrate DOGE as a payment option on X, but noted that such narratives seem absent in the current regulatory environment.

Dogecoin, initially created as a joke, gained a significant following and experienced past price pumps largely due to Elon Musk’s social media activity. Musk, who once claimed he liked the asset because it was “for the people,” even championed it as a serious payment coin. However, despite a brief comeback in late 2024 and early 2025—partially linked to Musk and his short-lived alliance with President Donald Trump—DOGE remains over 70% below its 2021 all-time high of $0.73.

Looking Ahead

Dogecoin’s prolonged struggle to achieve new highs, unlike other major cryptocurrencies, highlights a confluence of factors including market sentiment, an evolving identity, intense competition from newer meme coins, and a persistent lack of tangible utility. Its future growth hinges on overcoming these challenges and finding a clearer purpose within the dynamic crypto landscape.