Why did Dogecoin and Pepe underperform other altcoins this week?**
Meme coins faced disproportionate selling pressure due to risk aversion among retail traders[5]. Dogecoin’s 8% drop coincided with Elon Musk distancing himself from Telegram partnerships, reducing speculative fervor[2][5]. Pepe’s 12% decline reflects profit-taking after its recent rally and broader rotation into utility tokens[5].
The sell-off highlights meme coins’ dependence on social media trends and celebrity endorsements. Derivatives data shows open interest collapsing in both assets as traders shift to less volatile DeFi positions[5]. This could signal a market phase where speculative assets temporarily lose favor to protocols with measurable revenue streams[5].
