The annual volatility trend of Dogecoin, taking you to explore
The general stages of historical volatility changes
Since the birth of Dogecoin in 2013, its early volatility was relatively low. From 2013 until before 2020, its price remained relatively stable, with little variation in price fluctuations, with an average increase and decrease of around 10%. The fluctuation cycle was relatively long, averaging around half a year, during which it behaved like a 'good baby', with relatively stable market performance.
2020 became a watershed year, after which its volatility significantly increased. From 2020 to 2021, the increase surged, reaching as high as 2000% in May 2020, but the decline at the beginning of 2021 also exceeded 50%. The fluctuation cycle noticeably shortened, averaging around 1 to 2 months, resembling a 'roller coaster', as the market became more exciting.
Factors affecting volatility changes
Before 2020, the fluctuations in Dogecoin were mainly influenced by market sentiment, supply and demand relationships, and other factors. It was like an ordinary buying and selling transaction, where everyone's buying enthusiasm and the supply in the market determined the price fluctuations.
After 2020, it was increasingly influenced by mainstream cryptocurrencies like Bitcoin, as well as endorsements from famous personalities. For instance, Tesla CEO Elon Musk has repeatedly mentioned Dogecoin on social media, which would trigger significant fluctuations in its price. At the same time, changes in the market environment and regulatory policies in the industry also impact its volatility.
Recent volatility situation and possible future trends
Recently, the price fluctuations of Dogecoin have remained relatively large. Looking ahead to 2025, its price shows significant ups and downs at different times, and the influence of market sentiment and celebrity effects continues to exist. If the market environment becomes stable and regulatory policies are clear, its volatility may decrease; however, if new hotspot events occur or there are major changes in the market environment, its volatility may remain at a high level.
The cryptocurrency market is filled with uncertainty, and the changes in Dogecoin's volatility are also difficult to predict accurately. If you are interested in it, be sure to exercise caution when investing, and pay more attention to market dynamics and relevant policies. #Allindoge走起
