Dogecoin Drops 7% as Market Affected by Metal Fatigue

The multi-asset market is experiencing widespread declines due to the periodic selling pressure called metal fatigue. Traditional financial assets, especially cryptocurrency assets, are also caught in the same negative atmosphere. As of January 29, Dogecoin has lost 7.05% of its value in the past 24 hours, making it one of the most affected assets during this period of weakness.

Synchronized Decline in Bitcoin and Gold Shows Metal Fatigue Dynamics

Bitcoin deepened its overnight losses with American morning trading, dropping to a new low of $84.87K for 2026. This movement is evident with a 5.09% decline rate over the past 24 hours. In parallel, the effects of metal fatigue in gold have become more dramatic; The yellow metal experienced a sharp rally above $5,600 in the previous position, but then fell to $5,200 in a rapid sell-off. Such rapid reversals are typical signs of metal fatigue that occurs during market participants’ position adjustments.

Weakening in Traditional Markets Also Affects the Crypto Space

The Nasdaq stock market fell sharply by 1.5%, demonstrating the extent of investor risk aversion. The technology sector has been hit hard, with Microsoft losing more than 11 percent of its value after its fourth-quarter earnings report. These multiple failures indicate that investors are fleeing risky assets and turning to safe havens during this period, which can be described as metal fatigue.

Pudgy Penguins and NFT Market Resilience Contrast

Amidst the vast market sell-off, NFT-native brands like Pudgy Penguins present a different dynamic. This project is evolving from a virtual “luxury goods” strategy to a multifaceted consumer IP platform. Aiming for initial user acquisition through retail partnerships and viral media, the ecosystem enables the transition to Web3 through games, NFTs, and the PENGU token. The performance so far is impressive; The physical products have reached a sales volume of over $13 million, with more than 1 million units sold. The Pudgy Party game passed the 500 thousand download stage in two weeks. The token has been distributed across over 6 million wallets, ensuring a wide distribution. While the current market valuation carries a premium compared to traditional IP partners, long-term success hinges on retail expansion, gaming adoption, and the realization of deeper token utility.

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