DOGE (Dogecoin) down 2.45% in 24 hours, with a market capitalization of approximately $21.15 billion

Gate News Bot message, January 21st, according to CoinMarketCap data, as of press time, DOGE (Dogecoin) is trading at $0.13, down 2.45% in the past 24 hours, with a high of $0.15 and a low of $0.12. The current market cap is approximately $21.15 billion, a decrease of $532 million from yesterday.

Important recent news about DOGE:

1️⃣ Ecosystem application expansion drives long-term utility growth

The Dogecoin Foundation-supported House of Doge team is developing a DOGE payment and commercial application called “Such,” which is being developed jointly by the Dogecoin Foundation’s official enterprise department and Nasdaq-listed partner Brag House Holdings. Such is expected to launch in the first half of 2026 and will offer features such as self-custody wallet creation, real-time transaction updates, and a merchant tool called “Hustles.” The app aims to extend DOGE’s utility beyond trading, supporting anyone to conduct business with Dogecoin. The advancement of this application ecosystem indicates that the Dogecoin Foundation has entered the implementation phase of its broader adoption strategy, led by a 20-person development team based in Melbourne, Australia, which plans to conduct closed testing before public release. In the long term, expanding functionality at the application layer will help support DOGE’s fundamental development.

2️⃣ Spot ETF products and regulatory framework progress build mid-term support

The 21Shares spot Dogecoin ETF was listed on Nasdaq on January 14, tracking the CF Dogecoin-Dollar US settlement price index with a 0.50% management fee. This ETF provides traditional market investors with a compliant channel to participate in DOGE price fluctuations. Meanwhile, the “CLARITY Act” entered formal review by the U.S. Senate Banking Committee and Agriculture Committee on January 15, clearing regulatory hurdles for institutional participation through measures such as regulating crypto asset trading, banning false transactions, and requiring platform disclosures of reserves. The ETF’s initial launch pushed the price to a high of $0.15, reflecting expectations of increased capital inflows. However, subsequent price performance suggests that actual subscription volumes may have fallen short of expectations, with profit-taking by speculative funds after the early rebound, and a lack of effective buy support at high levels, causing the price to fall back from its peak to the current level, with market cap down nearly $1.8 billion from its high. This indicates a time mismatch between regulatory innovation and market sentiment cycles, and long-term positive effects are unlikely to provide effective support for short-term volatility.

3️⃣ Institutional leverage operations and risk appetite shifts contribute to downward pressure

Gate platform data shows that over the past two days, whale addresses opened 105.25 million DOGE (worth about $15.48 million) in 10x leveraged long positions. Meanwhile, another whale had their long position fully liquidated, incurring a loss of $2.2 million. The frequent occurrence of such large leverage operations indicates that, although some institutional participants are bullish on DOGE, rapid shifts in market risk appetite make high-leverage positions highly susceptible to triggering liquidity shocks. The buildup of leveraged longs followed by large liquidations creates a chain reaction that pushes prices lower, further intensifying the downward movement. After the early rebound, market risk appetite entered a correction phase, with speculative funds exiting, leading to a significant pullback in price.

This news is not investment advice; please be aware of market volatility risks.