Dogecoin’s Trump-Inspired Surge Crashes: Is There Any Hope for a Rebound?

Dogecoin (DOGE) is unraveling fast. After soaring earlier this year, the meme coin has lost 47% of its value year-to-date, underperforming even in a volatile crypto market. While wild price swings are expected, DOGE’s recent slump raises big questions: Is this a temporary dip, or is it time for investors to cut their losses?

Wild Swings Are Nothing New

Cryptocurrency has never been for the faint of heart. Prices rise and fall sharply, often without clear reasons. But over time, trends emerge.

Meme coins like Dogecoin tend to ride waves of hype, shooting up when excitement is high but collapsing just as fast. Unlike Bitcoin or Ethereum, which have underlying use cases and growing adoption, Dogecoin is more speculative—and that makes it especially vulnerable to big swings.

Look at DOGE’s past. Its price history reads like a roller coaster chart. Back in 2021, a tweet from Elon Musk could send it soaring. But hype is fleeting. Without strong fundamentals, meme coins often struggle to sustain gains. That pattern seems to be playing out again.

Big Money Still Isn’t Buying In

Bitcoin and Ethereum have gained credibility over time. Institutional investors—think pension funds and large financial firms—are now adding them to their portfolios. ETFs (exchange-traded funds) tracking these cryptos have been approved, making them easier to buy and hold for the long term.

Dogecoin? Not so much.

• It remains a favorite of retail traders rather than deep-pocketed institutions.
• Unlike Bitcoin, DOGE doesn’t have a capped supply, making it inflationary.
• It lacks a strong technical foundation for widespread adoption.

Most of its price movements are still driven by social media chatter and celebrity endorsements. That means more volatility, not stability.

Inflation Problem: More DOGE, Lower Value

Cryptocurrencies don’t work like stocks, but they do have fundamentals. And for Dogecoin, those fundamentals are shaky.

Every year, 5 billion new DOGE are added to circulation. That’s an inflation rate of 3.3%, higher than the current U.S. dollar inflation rate. Over time, this constant supply increase puts downward pressure on price.

Compare that to Bitcoin, which has a fixed cap of 21 million coins. Scarcity helps support BTC’s long-term value. With Dogecoin, there’s no end to the supply, making it harder for the price to hold steady.

How Dogecoin Stacks Up Against Competitors

Dogecoin isn’t just competing with Bitcoin or Ethereum. Newer, faster cryptos have entered the space.

Speed matters. Dogecoin takes about a minute to process transactions, faster than Bitcoin but far behind Solana. And without smart contract capabilities like Ethereum, its real-world use cases remain limited.

The Next 12 Months: More Losses Ahead?

Dogecoin thrives on speculation. When the market is booming, it can ride the wave higher than many other cryptos. But the flip side is brutal: when hype fades, it tends to fall harder.

With excitement around Trump’s election win cooling off, the short-term outlook isn’t great. Investors expecting another massive rally may be disappointed. Without major adoption or institutional backing, DOGE remains more of a trading token than a serious long-term investment.

The next year could be rough. Unless another round of hype sweeps in, expect more downside before any meaningful recovery.