Retail Money Shifts From Crypto to Event Contracts, Says Eric Liu: Could This Explain Why Dogecoin and XRP Are Lagging Behind Bitcoin?
Key Summary
Retail traders are shifting their focus away from cryptocurrency, according to Eric Liu of Vanda Research, with Dogecoin and XRP experiencing significant losses. This shift may explain why these coins are lagging behind Bitcoin, which has seen relatively less decline due to institutional backing via spot ETFs. However, other factors such as broader market sell-offs and beta measures may also be at play.
Retail Investors Flee Crypto for Event Contracts, Says Eric Liu: Dogecoin and XRP Left Behind
Market Trend Shift
Retail traders are pulling their money and focus away from cryptocurrency, according to Eric Liu, co-founder of Vanda Research. This shift may help explain why Dogecoin and XRP are falling behind Bitcoin over the past year. As of October 9, 2026, Dogecoin trades around $0.085, about 88% below its 2021 all-time high of $0.73. Meanwhile, XRP trades around $1.40, and Bitcoin trades near $82,600.
Beta Measures Volatility
Beta measures a coin's volatility relative to the broader market. Cryptocurrencies with a beta above one tend to drop more than Bitcoin when the market falls. In the week leading up to October 9, Bitcoin fell 4.1%, while XRP dropped 8.4%, Ethereum 8.6%, Solana 9.2%, and Dogecoin 11.5%. This increased volatility can explain Dogecoin's and XRP's losses without considering movement in the broader market.
Institutional Backing
Bitcoin has strong institutional backing, with U.S. spot Bitcoin ETFs holding about 1.29 million BTC, which may explain its less severe decline. In contrast, Dogecoin—originally created as a joke in 2013—still relies mostly on retail investors, leading to a sharper drop. XRP, which has a loyal retail following, falls somewhere in between Solana and Dogecoin in terms of losses.