Dogecoin's Meme Magic Fades: Post-Election Gains Evaporate

Dogecoin, the once-obscure meme coin, has seen a significant decline in its value, shedding most of its post-election gains. The cryptocurrency, which was created as a joke in 2013, surged in value following the November 5 victory of crypto-friendly President Donald Trump. However, it has since plummeted, trading at just over $0.20, after falling below $0.197 earlier this week.

CoinGecko data shows that Dogecoin, the eighth-biggest cryptocurrency by market cap, is now effectively tied with Solana as the biggest loser over the last week, with both losing over 19% of their respective value. Over the past day, DOGE has dropped by 3%.

On the day of the U.S. election, Dogecoin was trading for a little over $0.17, but quickly rocketed up after President Trump won. It hit a high of $0.48 in December, but has now plummeted and shed most of its post-election gains. The O.G. meme coin still has a long way to go until it beats its 2021 all-time high of $0.73.

Open interest for the coin has also nosedived and currently stands at $1.87 billion, according to CoinGlass. The number refers to the combined value of trades betting on the future price of the asset. Dogecoin open interest in January hit an all-time high mark of $5.25 billion.

The coin's drop comes as Solana and Solana-based meme tokens plunge in value as the entire crypto market takes a hit. Investors spooked by meme coin scams, Trump trade tariffs, and inflation are quickly exiting their crypto positions.

Dogecoin made a comeback last year after Elon Musk, the CEO of Tesla and SpaceX, said on the campaign trail that Trump would allow him to create a government department that shares its name with the coin's ticker: DOGE, or the Department of Government Efficiency. However, Musk has since admitted that he is "actually not actively involved in crypto," and that he makes Dogecoin jokes because he "just kind of like[s] Dogecoin."