Dogecoin (DOGE) Price Drops 35% in Two Days as Odds of ETF Approval Crash on Polymarket

DOGE, the biggest meme coin, dropped to $0.3150, down by 35% from its highest level this year. Dogecoin’s crash was mostly caused by its correlation with other cryptocurrencies.

The price of Dogecoin (CRYPTO: DOGE) dropped sharply over the past two days as cryptocurrency prices crashed and the odds of a DOGE ETF approval crashed on Polymarket.

What Happened: The biggest meme coin fell to $0.3150, a decline of 35% from the highest level seen this year.

The crash in DOGE was largely due to its correlation with other cryptocurrencies, an aspect that led investors to book profits following the strong rebound seen prior to Christmas.

Bitcoin (CRYPTO: BTC) moved from levels close to $100,000 on December 24 to reach $95,000, while most other cryptocurrencies, including Ethereum (CRYPTO: ETH) and Shiba Inu (CRYPTO: SHIB), also witnessed a decline.

Another factor impacting DOGE was the sharp drop in the odds of the SEC listing a DOGE ETF on Polymarket.

The odds of the ETF approval, once as high as 32% in November, stood at 20% at last check.

Why It Matters: Crypto investors are of the view that the Securities and Exchange Commission (SEC) under Paul Atkins will differ from that of Gary Gensler, leading them to expect the agency to approve spot ETFs faster than under Gensler.

To an extent, a Dogecoin ETF would make sense, considering it is a proof-of-work (PoW) cryptocurrency like Bitcoin.

However, the SEC does not view it as a financial security like Solana (CRYPTO: SOL) and XRP (CRYPTO: XRP), which makes the approval path easier.

See More: Best Cryptocurrency ETFs

On the other hand, Dogecoin is among the largest cryptocurrencies in the industry, with a market capitalization of over $46 billion.

The coin is also — to an extent — politically connected, thanks to Elon Musk, the world’s richest person.

Musk, who helped popularize the coin, has emerged as one of Trump’s close advisors and is also set to lead the Department of Government Efficiency (DOGE), tasked with reducing government costs.

DOGE Price Action: The coin dropped 10.03% over the past 24 hours and fell 23.06% over the past seven days. At last check, DOGE traded at $0.3150.