Dogecoin's first spot ETF flops…"Beware of increased altcoin volatility"

Grayscale listing first day

Net inflow '0 dollars' — a dismal result

Meme coin investor sentiment sharply contracted

The U.S. first Dogecoin spot exchange-traded fund (ETF) recorded a major flop, and Dogecoin's price is testing the key support level of $0.14. Experts say that with investor sentiment toward meme coins sharply weakened, volatility across the altcoin market could expand.

On the 2nd, the crypto industry reported that Grayscale's recently launched Dogecoin spot ETF posted a net inflow of '0 dollars' on its first day of listing, a poor result. Cumulative net inflows in the first week since launch amounted to about $2.16 million (about 3.1 billion won), far below Bloomberg Intelligence's estimated $12 million.

This contrasts with the early success of previously launched products like Bitwise's Solana ETF or Grayscale's XRPL ETF. The market analyzes that the lack of ETF demand stems from major meme coins such as Shiba Inu and Pepe losing momentum, having fallen 50~70% or more compared to the start of the year. Altcoin Vector diagnosed that "meme coins that once led the market have now lost both their narrative and upward momentum."

Amid ETF weakness, Dogecoin's price is also walking on thin ice. Having given back recent gains, Dogecoin is threatening the key support level of $0.14.

Technical analysts pointed to the $0.14 level as a short-term watershed for direction. Alejandro Arieche, an FXPro analyst, warned, "If the $0.14 support breaks, it could fall to $0.10, resulting in about a 30% additional decline." Conversely, Ayushi Jindal, a NewsBTC researcher, projected, "If that zone is defended, it could break the $0.16 resistance and attempt rebounds to $0.17 and, in the mid term, $0.21."

Looking at the broader market, a 'breather' phase is evident. While Bitcoin consolidates around the $90,000 level, the altcoin market is searching for direction and showing signs of increased volatility. Benjamin Cowen, a crypto analyst, said, "Considering Bitcoin dominance trends, altcoins are likely to remain weak for some time," adding, "volatility is likely to persist over the next 6–12 months." Macroeconomic negatives — such as concerns over unwind of yen carry trades if the Bank of Japan (BOJ) hikes rates and uncertainty over U.S. rate cuts — are also weighing on investor sentiment.

Not all views are pessimistic. Analytics firms including SwissBlock noted that during recent steep Bitcoin drops, some altcoins showed relative resilience, which can be interpreted as steady accumulation happening beneath the surface. Michael van de Poppe advised, "After the introduction of spot ETFs, the crypto market has entered a complex cycle beyond the traditional 'four-year cycle.' Even if there is short-term pain, the current environment is similar to past cycle lows, so it could be a meaningful re-accumulation opportunity in the mid to long term."

Kang Min-seung, BloomingBit reporter minriver@bloomingbit.io