Dogecoin Million-Dollar Trades Plunge by Nearly 95% - Is DOGE Set to Stall This Summer?

Million-dollar trades in Dogecoin (DOGE) have dropped nearly 95% since peaking in early 2025. The decline highlights a broader shift in investor sentiment amid a volatile market. Analysts point to waning retail enthusiasm and regulatory uncertainty as key factors.

Bitcoin and Ethereum have both seen significant price corrections in recent weeks, with Bitcoin hitting a 15-month low. The downturn has spilled over into altcoins, including Dogecoin. Derivatives data shows a $2.6 billion liquidation wave in the last week, reinforcing the bearish trend.

Risk appetite in global markets has deteriorated, with U.S. Treasury yields falling as investors seek safer assets. Citigroup analysts have cut their price target for Coinbase following the broader market sell-off.

Why Did This Happen?

Retail trading activity in Dogecoin has waned as traders shift to AI stocks and other high-growth sectors. The lack of institutional adoption has left Dogecoin exposed to sudden market shifts. In contrast, major tech firms are increasing capex in AI infrastructure.

Regulatory pressure continues to weigh on the crypto market. The U.S. Securities and Exchange Commission's ongoing enforcement actions have created uncertainty for investors. This is evident in the sharp decline in initial exchange offerings, like the SWAG SILVER token.

Investor sentiment is also shifting toward AI and cloud services. IREN Ltd. recently reported a sharp decline in Bitcoin mining revenue while AI cloud services accounted for less than 10% of its top line. The firm's stock has dropped over 18% in the post-earnings period.

What Are Analysts Watching Next?

Market watchers are monitoring Bitcoin's price action for potential rebounds. Stifel analysts predict Bitcoin could fall to $38,000 based on historical trends. Zcash, however, has shown resilience with double-digit gains despite weak derivatives markets.

Volatility remains a key theme in the market. Zcash's price action shows how open interest and funding rates influence crypto prices. A reversal in risk appetite could trigger renewed buying interest in Dogecoin.

What Could Happen This Summer?

Summer trading activity is traditionally weaker in the crypto market. With institutional investors focusing on AI and real-world assets, Dogecoin may struggle to attract new buyers. GrafTech is expanding its graphite electrode business while maintaining a defensive stance in the face of global competition.

Regulatory clarity could emerge in the coming months, especially with the Trump administration negotiating drug pricing. However, these developments are unlikely to benefit altcoins in the short term. eToro's upcoming earnings report may offer insight into investor behavior in the crypto space.

The summer months may test Dogecoin's resilience as the market navigates regulatory and macroeconomic pressures. While some analysts see value in the long-term, the immediate outlook remains cautious as the sector awaits a catalyst for renewed growth.