Dogecoin Volatility Drops, Beats Bitcoin Stability

Explore Dogecoin volatility now lower than Bitcoin's, impacting the crypto market. Stay informed on trends and implications. Read more.
Dogecoin volatility

Dogecoin volatility has recently experienced a decrease, making it more stable than Bitcoin. Data from TradingView reveals that Dogecoin’s 30-day realized volatility stands at 30%, which is lower than Bitcoin’s 35%. This change is noteworthy, as Dogecoin has been historically known for its higher volatility compared to Bitcoin, causing risk-averse investors to shy away. However, this newfound stability should not be mistaken for market maturity, as it is more likely a result of waning investor interest in alternative cryptocurrencies.

Bitcoin’s Dominance and Dogecoin’s Decline

The dominance rate of Bitcoin has risen to 50%, up from nearly 40% earlier this year. This indicates that liquidity is being pulled from alternative cryptocurrencies and directed towards Bitcoin. While the price of Bitcoin has increased by 60% this year, Dogecoin has suffered a loss of over 12%. This downturn in activity is in line with the uncertain regulatory outlook for smaller cryptocurrencies.

Low Liquidity in Dogecoin and Other Altcoins

The low liquidity in Dogecoin, as well as other coins, is also evident in the aggregate 1% market depth. This metric measures the bids and asks within 1% of the mid-price for all order books on major crypto exchanges. Data tracked by Paris-based Kaiko shows that the aggregate 1% market depth for the top 10 altcoins was significantly lower than that of Bitcoin and Ethereum at the end of last month.

Potential Impact of Stricter Regulations on Dogecoin

Stricter regulations for altcoins could eventually affect meme coins like Dogecoin. Earlier this year, the U.S. Securities and Exchange Commission (SEC) referred to several altcoins as securities in its lawsuit against leading digital asset exchanges Coinbase and Binance. Although Dogecoin and SHIB were not specifically mentioned, they could still be impacted by future regulations.

Investors should remain cautious and stay informed about the regulatory landscape for cryptocurrencies, especially considering the recent decrease in Dogecoin volatility. While it may be tempting to view this newfound stability as a sign of market maturity, it is essential to remember that this is more likely due to a lack of investor interest in alternative cryptocurrencies.


In conclusion, the decrease in Dogecoin volatility has made it more stable than Bitcoin, but this stability should not be taken as a sign of market maturity. Instead, it is likely a result of diminished investor interest in alternative cryptocurrencies. The dominance rate of Bitcoin has increased, and the low liquidity in Dogecoin and other altcoins is evident in the aggregate 1% market depth.

Furthermore, potential stricter regulations for altcoins could eventually impact meme coins like Dogecoin. As a result, investors should exercise caution and stay up-to-date on the regulatory landscape for cryptocurrencies. While the reduction in Dogecoin volatility may be enticing, it is crucial to consider the underlying factors and potential risks associated with investing in alternative cryptocurrencies.