Dogecoin (DOGE) Dips Below $0.40 as Trump’s latest move shifts investors focus

Dogecoin (DOGE) emerged one of the standout performers since Donald Trump was re-elected in 2025. However, after Donald Trump launched an official ‘TRUMP’ memecoin

Dogecoin (CRYPTO: DOGE) price remained largely consolidated above the $0.40 level on Sunday evening, as Donald Trump's newly launched token continued to gain market share.

What Happened: Dogecoin price fell 8.8% over the past 24 hours and was trading at $0.39 at the time of writing. The memecoin witnessed a price rally of 11.3% over the past seven days.

BTC price breached the $105,000 level on Sunday and Solana (CRYPTO: SOL) price reached a new all-time high of $275 per coin.

Over the past three months, Dogecoin enjoyed a close association with the Trump administration, partly due to Elon Musk's influence within government circles. Musk, a vocal proponent of DOGE, frequently promoted the memecoin during his public appearances and campaigns.

This dynamic shifted significantly with the recent launch of President-elect Donald Trump's official memecoin, TRUMP, hosted on the Solana blockchain.

Within 48 hours of its debut, the TRUMP token amassed an impressive market capitalization of $7.2 billion, reflecting widespread positive sentiment among investors.

While this rapid growth indicates widespread positive market reception for TRUMP, it has also triggered an unintended negative impact on older, legacy memecoins.

Tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) appeared to have lost traction as the TRUMP token encroached upon more market share.

Trump PolitiFi Tokens Performance (January 19, 2025) | Source: SosoValue

The SosoValue chart above presents the performance of select cryptocurrency tokens remotely linked to the Trump administration. As depicted, TRUMP token market capitalization crossed $7.84 billion while attracting a staggering $14.8 billion in trading volume on Sunday.

This figure nearly triples the $5.4 billion in trading volume accrued to Dogecoin, the largest memecoin by market capitalization during the same period. The disparity in performance highlights a clear shift in investor focus.