As of 4:00 p.m. ET on Friday, Dogecoin (DOGE +13.69%) is the leading top-10 cryptocurrency by market capitalization, surging 10.9% over the past 24 hours. This move coincides with strong upside momentum in the digital assets sector, as all primary tokens have experienced gains in today's session. Today's move has resulted in the overall market capitalization of this sector surging 2.4%, suggesting that Dogecoin's move has had a significant impact on this overall return.
CRYPTO: DOGE
Key Data Points
Of course, a solid macro backdrop is a net positive for investors in any asset, in any sector. That said, let's dive into why the world's largest meme coin is surging today, and what this move may portend for Dogecoin's potential return in 2026.
What's behind today's big move in Dogecoin?
Source: Getty Images.
I think the key factor investors have been waiting for, particularly when it comes to meme tokens like Dogecoin, is whether the thinning liquidity and highly reactive spot markets we saw materialize near the end of 2025 would continue into the beginning of this year. If there were going to be a Santa Claus rally, last week's performance (and that of the past few months) hasn't been a bullish indicator for Dogecoin investors.
It does appear to me that Dogecoin's underlying fundamentals are seeing some improvement, with active addresses stabilizing and Dogecoin's total value locked (a measure of the amount of liquidity circulating within the Dogecoin ecosystem) spiking over the past 24 hours to more than $15 million.
That's good news for investors looking for underlying reasons to sell, considering Doegcoin's recent price decline has been driven by reduced on-chain activity (and lower profitability across the board). But with so-called "whales" (large investors holding millions of dollars worth of DOGE tokens) back in buying mode to start the year, retail investors appear to be following suit. If this trend continues, it will be interesting to watch how Dogecoin performs for the rest of the year and whether its recent downside momentum has officially reversed.
