The rollercoaster ride continues for cryptocurrency markets, with Dogecoin relinquishing its recent gains as Solana takes the lead in the latest rebound. After a brief surge sparked by the appearance of the Dogecoin logo on Elon Musk’s Department of Government Efficiency (D.O.G.E) website, the meme coin pulled back sharply, shedding over 7% in Wednesday trading. Meanwhile, Solana’s SOL token jumped 8% to pace a broader recovery in digital assets.
Mixed Moves for Crypto Majors
The leading cryptocurrencies by market capitalization saw varied performance over the past 24 hours:
- Bitcoin (BTC), Ethereum (ETH), and BNB posted modest gains under 1%
- Solana (SOL) surged over 8% to lead the large-cap recovery
- Ripple (XRP) followed closely with a 7% advance
The broad-based CoinDesk 20 index, which tracks the top cryptocurrencies by market value, rose 2.57% on the day. Hyperliquid’s HYPE token was the standout performer among major digital assets, soaring 13%.
Dogecoin’s Wild Ride
Dogecoin captured the market’s attention on Tuesday when the D.O.G.E website prominently featured the token’s logo. The buzz quickly faded, however, as the site removed the Dogecoin branding and replaced it with generic dog-themed images. DOGE plunged from a peak near 38 cents to 36 cents by Wednesday afternoon, erasing most of the prior day’s pump.
“Crypto markets have dipped as traders take profit and wait to see the potential impact of tariffs on Mexico and Canada, which could impact stock markets when the US stock market opens tomorrow,” noted Jeff Mei, COO at BTSE.
Policy Shifts in Focus
As the market digests the latest price action, attention is turning to the policy landscape under the Trump administration. Traders are closely watching for any executive orders or regulatory moves that could impact the crypto space.
“We are optimistic that in the coming days and weeks, Trump will issue executive orders and roll back anti-crypto policies set by the Biden administration,” Mei added, highlighting the recent appointment of crypto-friendly Caroline Pham to the CFTC.
Renewed Risk Appetite?
The rapid recovery from Tuesday’s dip suggests underlying strength in the crypto market and ongoing demand for risk assets, according to Alex Kuptsikevich, senior market analyst at FxPro.
“The market’s rapid recovery is indicative of continued interest in risk assets. Clearly, optimism is high in the market, but an additional factor is needed for new momentum,” Kuptsikevich noted.
Whether that catalyst comes in the form of favorable policy developments or a broader risk-on shift in traditional markets remains to be seen. For now, traders are keeping a close eye on Dogecoin, Solana, and the other major movers as the crypto rollercoaster ride continues.
