The price of Dogecoin dropped to $0.33 after a sharp decline on Monday, triggered by market concerns over the Chinese AI application DeepSeek, which investors believe threatens U.S. dominance in artificial intelligence.

Some analysts predict a further decline in the cryptocurrency’s value, possibly down to $0.26. According to CoinMarketCap, Dogecoin’s trading volume has decreased by 41% in the past 24 hours, and its market capitalization now stands at $48.9 billion.

However, some experts believe that fears surrounding DeepSeek are exaggerated and that Dogecoin’s price will stabilize. “The U.S. remains the undisputed leader in AI development,” says Chris Chung, founder of the Solana-based platform Titan.

“Everyone overreacted to the news that China created a cheaper version of ChatGPT, but this is not a revolution. They are merely replicating existing technologies at a lower cost,” he explained.

Chung added that although Chinese companies may improve their models, in the long run, the U.S. retains technological superiority. “The market simply overreacted, as it often does,” he concluded.