DOGE Drops to $0.09 on Binance as Coinbase Trades 40% Higher in Crash
- DOGE hit $0.09 on Binance, while Coinbase stayed 40 percent above, suggesting two distinct liquidity models in motion.
- Analysts saw Coinbase’s price floor stay intact as others dropped, showing a controlled trading environment during the crash.
- The divergence raised questions about who managed the protection and why Coinbase’s books remained steady in the event.
Dogecoin (DOGE) saw a sharp divergence in prices across major exchanges during the recent crypto market crash. While DOGE fell to $0.09 on Binance, OKX, Bybit, and Kraken, it traded more than 40% higher on Coinbase. This stark difference sparked questions among analysts about whether Coinbase’s market makers followed a distinct strategy to manage volatility.
The chart shared by market analyst Dom (@traderview2) on X (formerly Twitter) displayed real-time DOGE price movements by exchange. The visual data confirmed that Coinbase’s price line (in yellow) remained significantly elevated, even as other platforms experienced sharp declines.
This anomaly occurred as liquidity thinned across multiple exchanges. Binance, OKX, and Bybit showed synchronized drops, while Coinbase maintained a more stable price band. According to Dom, the divergence appeared intentional and possibly linked to Coinbase’s internal risk control mechanisms.
Traders speculated that Coinbase’s liquidity providers might have been protecting order books to prevent cascading liquidations. Others suggested that a temporary delay or circuit-breaker-style mechanism could have insulated Coinbase users from extreme volatility.
Market Makers and Divergent Strategies
The discrepancy raised broader questions about how market makers manage liquidity during intense sell-offs. Dom’s observation pointed out that Coinbase’s market makers might have been running a completely different playbook or protecting the books during the flash crash.
In contrast, Binance and other top exchanges reflected the market’s full brunt, with DOGE’s price collapsing momentarily to $0.09 before rebounding. This difference indicates that Coinbase’s algorithms or liquidity partners likely employed a defensive pricing strategy to maintain market order.
Historically, major exchanges use unique liquidity provisioning models that determine how prices adjust during stress events. These systems can create temporary price fragmentation when certain exchanges throttle trades or widen spreads. Coinbase’s decision to maintain a tighter floor could have shielded its users but also created arbitrage opportunities elsewhere.
Technical Data and Market Implications
The chart’s multi-exchange comparison—covering Binance, Coinbase, Bybit, OKX, and Kraken—reveals key insights into trading behavior under pressure. Between 17:15 and 17:30 UTC, DOGE’s price collapsed sharply on all exchanges except Coinbase, where the decline was minimal.
After the initial plunge, other platforms showed rapid recovery as DOGE rebounded toward $0.18. Coinbase’s data line, however, stayed above that range throughout, confirming the unusual price protection. The divergence persisted for several minutes before markets normalized.
Dom’s analysis described this event as “not random,” suggesting coordinated or algorithmic intervention within Coinbase’s internal trading systems. Such controlled divergence implies strategic management rather than technical malfunction.
For traders, this pattern signals that exchange-specific liquidity management plays a critical role in crisis resilience. When prices deviate across platforms, arbitrage trades often restore balance—but only after volatility peaks. The Coinbase incident demonstrates how certain mechanisms can preserve price stability at the expense of synchronized market flow.
Similar cases have occurred before with assets like XRP and ETH, where exchange-specific policies created price gaps under heavy liquidation pressure. These events reveal the complex dynamics between automated systems, market makers, and investor protection during rapid market shifts.
