Here's Why Dogecoin Plunged 4.5% Today

It's not just sentiment that's declining for Dogecoin today.Dogecoin (DOGE 3.97%) is one of the quickest decliners in a very red cryptocurrency market today. This token has declined 4.5% over the past 24 hours, as of 3:15 p.m. ET, despite bouncing off an intraday low that had brought this top meme coin down by more than 5%. ExpandCRYPTO: DOGEDogecoinToday's Change(-3.97%) $-0.01Current Price$0.13Key Data PointsMarket Cap$19BDay's Range$0.13 - $0.1452wk Range$0.13 - $0.43Volume1.3B Even for a meme coin, I'd argue that this move is substantial. That's because Dogecoin is still the ninth-largest cryptocurrency by market capitalization and is widely considered a fairly accurate sentiment gauge for digital assets more broadly. Let's dive into what may have shifted with Dogecoin's investment thesis today, or if this is another run-of-the-mill market sell-off investors shouldn't pay too much attention to. Market weakness isn't the only story for Dogecoin today Source: Getty Images. Yes, broader market weakness is something we need to factor into our analysis of today's dismal performance for Dogecoin. The wider cryptocurrency market declined by 2.9% over the past day, so about half of Dogecoin's move can likely be explained by broad-based selling pressure. Much of this weakening sentiment can be attributed to yesterday's jobs report, which showed the U.S. unemployment rate surging yet again in November to 4.6%, its sixth consecutive month of 0.1% increases, and the highest unemployment level in years. Off of this year's low in January of 4% and a 4.1% level in June, that's a significant move. If we do see unemployment continue to rise, concerns about the availability of speculative capital to flow into tokens like Dogecoin are indeed meaningful.Advertisement Despite large investors scooping up 138 million DOGE tokens yesterday, investors appear to be paying closer attention to the weakening fundamentals around active monthly users and Dogecoin's total value locked (TVL). Both metrics have continued to decline, with monthly active users near the lowest levels we've seen in roughly six months, and Dogecoin's TVL sinking from around $26 million in September to under $13 million today. Those are numbers that suggest previously robust user growth and invested capital within the Dogecoin ecosystem are deteriorating. In other words, Dogecoin's move today may have more to do with its own fundamentals than its use as a gauge of market sentiment. About the AuthorChris MacDonald is a contributing Motley Fool cryptocurrency analyst covering digital assets and blockchain companies. Chris has more than 10 years of professional experience in venture capital and corporate finance. He holds an MBA in finance from the University of British Columbia’s Sauder School of Business.TMFChrisMacDRead NextDec 15, 2025 •By Neil PatelWill Dogecoin Reach $1 By the End of the Year?Dec 11, 2025 •By Keith NoonanWhy Dogecoin Is Sinking TodayDec 9, 2025 •By Chris MacDonaldHere's Why Dogecoin Ripped 4% Higher TodayDec 7, 2025 •By Lyle DalyShould You Invest in Dogecoin?Dec 6, 2025 •By Chris NeigerHere's Why I Wouldn't Touch Dogecoin With a 10-Foot PoleDec 4, 2025 •By Adam SpataccoWill Dogecoin Reach $1 By the End of the Year?